**Quiz Question:**The net effect to a corporation of the declaration and payment of a cash dividend is to:- a. increase assets and increase stockholders' equity- b. increase stockholders' equity and decrease liabilities- c. decrease liabilities and decrease stockholders' equity- d. decrease assets and decrease stockholders' equity*Note:* Moving to the next question prevents changes to this answer.

Cash dividend means the dividend paid to the company's stockholders in the form of cash. This can be…

Answered: The net effect to a corporation of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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?With regard to stock dividend, which of the following is true .Reduces a corporation's assets and stockholders' equity A .Does not affect total equity, but transfer amounts between the components of equity.B „The decision to declare a stock dividend resides with the shareholders .C Transfers a portion of equity from retained earnings to a cash reserve account.D
(9) Are Equity Investments purchased by an investing corporation OR sold by a corporation that needs cash?
Please answer the multiple choice questions with only simple explanation. Thankyou! 6.) Assets or services acquired by a corporation in exchange for shares of stock should be recorded at: the book value of the stock at the time of the transaction the difference between the historical cost of the assets or services received and the amount of cash paid out as a result of the transaction the historical cost of the assets or services received less any cash received as a result of the transaction the fair market value of the assets or services received 7.) Which of the following regarding the conversion of preferred stock into common stock is true? gains resulting from a conversion are recognized and losses resulting from a conversion are not recognized losses resulting from a conversion are recognized and gains resulting from a conversion are not recognized both gains and losses from a conversion are not recognized…
Question 1 Which of the following would NOT be included as equity in a corporate balance sheet? Retained earnings Paid in capital Cash Ordinary shares
What term refers to funds provided in a business by its shareholders? Question 19 options: assets equity revenue liabilities
Which of the following statements related to dividends is incorrect? O Dividends must be paid in the period declared. O Before declaring a dividend, management must consider availability of funds to pay the dividend. O Distributions to owners must be in compliance with the state laws. O Dividends must be declared by the Board of Directors.
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
Cash dividends decrease the assels and decrease the refained earnings of a corporation True O False
Please explain in detail
Topic: Capital Raising for Corporations Explain the following in a simple way for me to easyly understand Equity Financing Investments by Shareholders: Common Equity Issuance Distribution to Shareholders: Dividends Stock Dividends and Stock Splits Distribution to Shareholders: Share Repurchases
Under the accrual method of accounting, how are dividends paid to stockholders treated? O Dividends decrease retained earnings and are considered an expense O Dividends are considered a distribution of retained earnings but do not affect net income O Dividends increase stockholders' equity as they represent a return on investment O Dividends paid are recorded as an investment activity in the statement of cash flows O None of the above

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