Which of the following is most likely true regarding payment of dividends? a. Dividends may be paid from legal capital b. Retained earnings are available for dividends unless restricted by contract or by statute c. Unrealized capital is available for any type of dividend d. Capital from donated assets is available for dividends

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: Which of the following statements is incorrect?      A. Dividend payments can be influenced by cash…

A: Dividends are the amount of profits distributed to the shareholders of the company.

Q: The Retained Earnings account: a. is a special fund for paying shareholders' dividends on the basis…

A: Retained earnings is the profit that is left after paying all the expenses, dividend and taxes. Such…

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: Payment of Dividend to the shareholders is categorised as a) Operating Activity b) Financing…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: Which of the following regarding retained earnings is false?a. Retained earnings is increased by net…

A: Answer:   Option c

Q: Which is not a liability account?

A: Liability is either cash or assets payable to third party based on certain obligation of company.…

Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…

A: Option A is incorrect The correct statement is  Equity is the residual interest in the assets of the…

Q: Which does not affect total shareholders’ equity? a. Stock dividend b. Scrip dividend c. Cash…

A: The dividend is paid to the shareholders from the retained earnings of the business.

Q: Why is the term liquidating dividend used to describe cash dividends debited against paid-in capital…

A: Cash dividends: This is the amount of cash distributed to stockholders by a company out its…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: ch of the following is not correct relative to an appropriation of Retained Earnings? a. Retaine

A: The amount of profit after paying all the costs incomes taxes and dividends to shareholders is known…

Q: Which of the statements are not correct Select one: a. Profits refers to earnings before Interest…

A: Earnings before interest and tax is the profitability indicator for a company that is also referred…

Q: In preparing a statement of cash flow, sale of treasury shares at an amount greater than cost would…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Other than from retained earnings, dividends may be declared out of: Choose one answer. a. Paid in…

A: Dividend refers to the amount of profit that is distributed by the company to its shareholders.

Q: mount of dividends that a corporation may declare? a. Cash flow test b. Book value test c.…

A: The right answer is d. Income to expense ratio test

Q: Compare and contrast these charges, paying particular attention to how they are created and…

A: Fixed ChargeIf a debt is subject to a fixed charge, the borrowing will be secured against a…

Q: Dividends are recognized in profit or loss only when: Group of answer choices A. The amount of the…

A: Dividends are recognized in profit by the company received it when the dividends are received.

Q: id-in-capital and retained earnings: Similar? Different? What are the main categories of paid-in…

A: It is usually split into two different line items: common stock (par value) and additional paid-in…

Q: Which of the following statements regarding equity is not true? It is defined independently of…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.

Q: Which of the following is a cost associated with an IPO? Interest expenses Out-of-pocket expenses…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Which of the following statements is TRUE regarding the equity method?    A. The equity method is…

A: The investor's equity in the associate adjusts in direct connection to the adjustments in the…

Q: Dividends are recognized in profit or loss only when a. the entity's right to receive payment of…

A: Solution: Dividends are recognized in profit or loss only when a. the entity's right to receive…

Q: According to IAS 39 Financial Instruments: Recognition and Measurement, at what amount should a…

A: IAS 39 is an Indian accounting standard which is related with the recognition and measurement of the…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: Earnings and profits are conceptually similar to retained earnings.     A distribution from…

A: The dividend can be paid either from current earnings and profits or from the accumulated earnings…

Q: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: Two sources of capital of common equity are the issuance of new common stock (external) and retained…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: It is not unusual for some company investments to carry cumulative dividend rights.    Which of…

A: Cumulative dividends : Cumulative dividends can be described as a right that the preference…

Q: he primary purpose of the Balance Sheet is to reflect: a. Firm’s potential for growth in stock…

A: Solution: The primary purpose of the Balance Sheet is to reflect " Firm’s resources and how they…

Q: 4) XYZ Corporation declares and distributes a cash dividend that is a result of current earnings.…

A: Fair Value Method: When an investing entity makes an investment and the investment has both…

Q: he effect of a share dividend is to transfer assets to stockholders assets to contributed capital…

A: We know that dividend is the distribution of profits of the entity in the form of new shares to the…

Q: Which of the following statements is CORRECT?  A. Net working capital is defined as current assets…

A: The question is multiple choice question. Gross Working Capital is the amount invested in Current…

Q: Dividends are recognized in profit or loss only when: Group of answer choices:   The entity’s right…

A: Solution: Dividends are recognized in profit or loss only when: 1. The entity’s right to receive…

Q: Dividends are recognized in profit or loss

A: First option is correct because an income is recognized only when it can be measured reliably. Third…

Q: Why does the equity method record dividends from an investee as a reduction in the investment…

A: The carrying amount or the book value of the investment is reduced in order to record the dividend…

Q: If the company decides to declare a share dividend instead of cash, explain the effects on the…

A: A company declares share dividend instead of cash dividend if it has low or insufficient cash…

Q: It entitles an employee to receive cash which is equal to the excess of market value of the entity's…

A: It entitles an employee to receive cash which is equal to the excess of market value of the…

Q: whether an investing firm is the primary beneficiary in a variable-interest entity. When is an…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Based on which of the following concepts, is share capital account shown on the liability side of a…

A: Business entity concept says that both businessmen and business are separate person. Business has…

Q: Under the capital maintenance concept, which of the following items should be deducted from the…

A: Capital maintenance is an accounting concept based on the principle that a company's income should…

Q: TRUE OR FALSE? The total retained earnings can be declared as dividends.

A: Retained earnings: Retained earnings are those profits that the company has been accumulated over…

Q: Dividends are recognized in profit or loss only when: a. It is probable that the economic benefits…

A: As per IFRS 9 dividend needs to recognize in profit and loss account when, Entity's right to…

Q: 1. Which of the following statements is correct? A. Assets on the balance sheet include retained…

A: Balance sheet equation is Total assets = Total liabilities + owners equity

Q: In the application of the equity method, how should dividends from the investee be accounted for?…

A: Equity method: Equity method is the accounting method used for accounting equity investments which…

Q: How and why should the cost of capital change when the Company must rely on new issues of common…

A: Issuance of new stock is the process by which a listed company tries to acquire additional capital…

Q: When a corporation declares a cash dividend, the entry include a a. debit to net income b. credit…

A: The correct entry for declaration of dividend is:   Account Titles and Explanation  Debit…

Q: Which of the following dividends may be recognized as revenue? a. Cash dividends b. share dividends…

A: Solution Concept Dividend is the amount of profit distributed to the shareholders of the company The…

Q: Identify the different types of dividends. How much is debited to Retained Earnings upon declaration…

A: Types of dividend:- (1)Stock dividend:-stock dividend is issued by the company its common stock…