Cash dividends, property dividends, and scrip dividends are examples of dividends that_ Select one: O a. have no effect on total shareholders' equity but decrease retained earnings and increase contributed capital O b. have no effect on any element of shareholders' equity O c. decrease total shareholders' equity by decreasing retained earnings O d. decrease total shareholders' equity by decreasing contributed capital

Cash dividends, property dividends, and scrip dividends are examples of dividends that_ Select one: O a. have no effect on total shareholders' equity but decrease retained earnings and increase contributed capital O b. have no effect on any element of shareholders' equity O c. decrease total shareholders' equity by decreasing retained earnings O d. decrease total shareholders' equity by decreasing contributed capital

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 12CDQ

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Similar questions

Which of the following does not decrease retained earnings? Select one: a. Stock dividends b. Cash dividends c. Net loss d. Net income
Which of the following dividends does not reduce total stockholders' equity? O Liquidating dividends. O Cash dividends. O Stock dividends. O All of these answer choices reduce total stockholders' equity.
What is the difference between dividends that are declared and dividends that are paid? There is no difference When they are declared they reduce Net Income and when they are paid they reduce cash When they are declared they increase Net Income and when they are paid they reduce cash When they are declared they reduce Common Stock and when they are paid they increase Dividends Payable When they are declared they reduce Retained Earnings and when they are paid they reduce Dividends Payable
Which of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these
The type of dividend that does not affect total assets and total shareholders' equity is a. share capital dividendb. property dividendc. cash dividendd. scrip dividend
Q . Which of the following statements is not true?a) The return on shareholders’ funds can be calculated as profit after tax /total equity x 100b) The dividend cover ratio can be calculated from the Income statement andthe statement of cash flows and the answer will be the samec) The interest cover ratio can be calculated from the income statement andthe statement of cash flows and the answer will be differentd) The operating profit margin is also called the net profit margin
Dividend payments reduce all the following balance sheet items except fixed costs retained earnings stockholder's equity cash
In the context of choosing a share repurchase over declaring dividends, a share repurchase would *a. Decrease available financing whereas declaring dividends increase available financing.b. Increase earnings per share by decreasing the number of shares outstanding.c. Decrease earnings per share by decreasing dividends payabled. invlove all shareholders.
Other than from retained earnings, dividends may be declared out of: Choose one answer. a. Paid in capital in excess of par value b. Paid in capital in excess of issued price c. Neither a nor b d. Both a and bAdd an explanation, please. Thanks
Which of the following is true about dividends: Group of answer choices Increasing dividends can impact retained earnings. Dividends must always be paid if the company makes profit. Dividends are split equally between stockholders and bondholders. Dividends paid reduce the net income that is reported on a company's income statement.
Which of the statements are not correct Select one: a. Profits refers to earnings before Interest and Taxes b. Investment decisions relate to pattern of financing c. Dividend pay out ratio refers to what proportion is paid to shareholders d. Borrowed funds are relatively cheaper than shareholders’ funds
The cost of retained earnings is less than the cost of ordinary shares because of *a. the issuance cost.b. agency costs of free cash flow.c. the taxation on earnings.d. the trust fund doctrine.