Answered: Comparing dividends per share to…

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations. Group of answer choices True Fals

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The wealth created by a company is reflected in the Select one: a. Current liabilities O b. Current…

A: The wealth is created by the business organization which provides value to the organization. The…

Q: What is the capital called that is contributed to the corporation by the stockholders and others?…

A: Stockholders are the owners, who invest in the company in the form of cash or kind. They can be…

Q: Share dividends distributed shall be reported as O a note to financial statement O a reduction in…

A: A dividend payment that is given in the form of shares rather than cash is referred to as a stock…

Q: A recent valuation formula uses multiples based on enterprise value (EV). How is EV defined? O Share…

A: Enterprise Value (EV) is a fundamental financial metric that aims to represent the total value of a…

Q: When accounting for small share dividend, which of the following will be use in recording such…

A: The share dividend is the dividend provided to the shareholders in the form of shares.

Q: Which one of the following is a payment of either cash or shares of stock that is paid out of…

A: Retained earnings are the part of the profit left over after payment of all the direct and indirect…

Q: stockholders equity, paid in capital , retained earnings and net

Q: What is the accounting treatment of the direct issue costs of shares of stocks? Debit to the…

Q: What are if any the differences between Stockholder's Equity, Retained Earnings, Common Stock,…

A: Owner’s equity is the difference between total assets and total liabilities. Owner’s equity is…

Q: Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders.…

A: B. false Retained earnings are not paid to shareholders. Generally dividend paid to shareholders ,…

Q: Which of the following do/does NOT describe how shareholders accrue investment returns (Select all…

A: We make investments in different types of financial assets like stocks, bonds, etc. Here the…

Q: Shareholders wealth is calculated as Select one: a. Number of shareholders X Current market price b.…

A: Shareholder's wealth is collective wealth created by the company and represented by its market…

Q: The shareholders of the company gets share in the profit. This distribution of profit is called as O…

A: The distribution of the profits by the company to the shareholders is called the Dividend... Option…

Q: Total shareholders' equity, beginning balances Common stock and additional paid-in capital:…

A: DIVIDEND PAYOUT RATIODividend payout ratio represents the amount of dividend paid to its…

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: What does book value per share measure? Current selling price of stock Amount shareholder would…

A: The book value per share (BVPS) is calculated by taking the ratio of equity available to common…

Q: Which method is used to distribute dividends to common share holders?

A: Dividend Dividend is the share of profit distributed to the shareholders of the company. When a…

Q: TRUE OR FALSE? In computing earnings per share, we must interpret this in terms of the number of…

A: EPS or Earnings-per-Share refers to portion of net profit that belongs to each single unit of common…

Q: describe how earnings per share is calculated and calculate and interpret a company’s earnings per…

A: Earnings per share (EPS) is a company's net profit divided by the number of common shares it has…

Q: Dividends are (Select all that apply.) required amounts owed to shareholders reported on the Income…

A: The dividend is considered as a part of the distributable profit distributed by the company to its…

Q: Total shareholders' equity, beginning balances Common stock and additional paid-in capital:…

A: (1) Total Payout: It is a broader term that encompasses any form of payment made by a company to its…

Q: Retained earnings refers to Group of answer choices Cash and other assets The amount of net income…

A: Retained earnings are the portion of a company's net income that management retains for internal…

Q: rdinary share capitalOrdinary share capitalWhich of the following items would not form part of the…

A: Trade payables are third party liability which are shown as liabilities and not as shareholders…

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 about stock dividends is true? Multiple Choice O Stock dividends…

A: Stock dividends: It can be defined as the payment of dividends to the shareholders in the form of…

Q: how is an increase of share prices recorded on a company's income statement, balance sheet, and cash…

A: Answer: An increase in share prices will not have any monetary impact. It simply means that the no.…

Q: Which of the following affects the total Shareholders’ Equity? Appropriation of retained earnings…

A: Appropriation of retained earnings: The appropriation of retained earnings means to allocate the…

Q: What are some considerations a company should take into account when establishing dividend policy?

A: there are some considerations a company should take into account when establishing a dividend policy…

Q: Cash dividends declared but not paid as of the statement of financial position date are reported as…

A: When cash dividend are declared then liability to pay dividend is recorded in the books. It is…

Q: 2. Which of the following is a share of owners in a corporation? B. capital gain A. bond C. dividend…

A: The bond represents a loan lend by an investor to the borrower. It is fixed-income security. The…

Q: Which of the following does not appear in a statement of retained earnings? Choices; Net loss…

A: Retained earnings is the amount of earnings collected or accumulated over the period of time.…

Q: 10. Explain the components of the shareholders' equity section of the statement of financial…

A: Hi student Since there are multiple questions, we will answer only first question.

Question

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Group of answer choices

True

Fals

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following best describes the market capitalization of a company? Select one: a. it represents the total value of the company b. it is the product of the numbers of shares and the price per share c. it represents the total wealth associated with the company's earnings d. it is the most someone would pay for the stock
Which of the following equations is correct? Multiple Choice Asset Liabilities-Shareholders' Equity Assets + Liabilities Shareholders' Equity Ending Retained Earnings Beginning Retained Earnings-Net Income Dividends Net Income Expenses-Revenues
Which of the following is shown on a statement of cash flows? A share dividend A share split An appropriation of retained earnings None of these answer choices are correct
What us earnings per share? What us its significance to the shareholders? How is it computed if: Only one class of share capital is outstanding Two classes of share capital are outstanding
A company’s assets and shareholders’ equity are most likely to be increased by Share rights exercise Cash dividends Share dividends Share splits
The distribution of a dividend that represents a partial return of the original investment made by the shareholders is known as a. participating dividend. b. liquidating dividend. c. property dividend.
Which one of the following is the ultimate objective of modern financial management for a corporation? Earnings maximization Earnings per share maximization Share value maximization Return on assets (ROA) maximization Oooo
When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared
Describe Earnings Available to Common Shareholders.
.What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Group of answer choices a. Organization Expense b. Additional Paid-in Capital c. Organization Costs d. Common stock
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.
What factors fo firms consider in establishing dividend policy? Briefly describe each of them