Why dividends are not deductible?And what could be the order of priority regarding income and assets in terms of preferred or common stock?

Q: What are the different types of dividends, and how is a dividend paid?

A: A portion of profits payable to the shareholders by the company on a regular period is termed as…

Q: Why were dividends not included under the liabilities and equity section?

A: Dividends are the payments made to the shareholders of the entity as a return for making investment…

Q: Are assets: (a) always lower than liabilities or (b) financed by the stockholders' equity?

A: Assets are the property of the business which can be converted into money and which gives benefit to…

Q: How does the purchase of treasury stock affect the purchaser’s assets and total equity?

A: Treasury stock: It can be defined as the stock that is repurchased or bought back by the issuing…

Q: Is Share Dividends qualify as Revenue?

A: If the entity is in the business of buying and selling shares and securities then share dividends…

Q: Which of the following is NOT correct regarding trading securities *   a. Unrealized holding gains…

A: Securities are defined as those instruments which are used for investment purposes. These can be…

Q: Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances…

A: Net income is the result of total expenses from the total revenue. EPS is the short form of Earnings…

Q: distribute dividends

A: Dividend is the distribution of profit among the shareholders of the company.

Q: What is the difference between stocks issued and cash dividends declaration?

A: Stock issued: Stock issued means that the company authorized and delivery of shares of stock for…

Q: What is the difference between stock split and stock dividends.

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Q: Which dividends do not reduce stockholders' equity? O Cash dividends O Stock dividends O Property…

A: When Cash Dividends are Paid than they Reduces Retained Earning and Cash Balance of the Organization…

Q: What does the Stockholders' equity represent?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…

A: Common stock: The common stock is considered as a security that signifies proprietorship in a…

Q: Why might conflicts arise between stockholders and debtholders?

A: A stockholder or a shareholder can be an individual or a company who own one or more shares of a…

Q: Which of the following is not associated with characteristics of common stock? O residual claim on…

A: A common stock is a sort of stock that is issued to the majority of the shareholders of a…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split: It is the way of reducing the value of a share by split one share into multiple shares.…

Q: Typically, how often are dividends paid?

A: Dividends are paid to shareholders out of the net profit earned by the company and if required from…

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: What is the statement of stockholders’ equity, and whatinformation does it provide?

A: The statement of stockholders' equity is a financial record of data related to changes in share…

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: The type of dividend that does not affect total assets and total shareholders' equity is a. share…

A: The dividend is the portion of net income which is distributed to shareholders. Dividend payment is…

Q: Where can authoritative IFRS be found related to dilutive securities, stock-based compensation, and…

A:

Q: What are stock splits and stock dividends? Whatare the advantages and disadvantages of each?

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: Which of the following is not a characteristic that sets preferred stock apart from common stock?A.…

A: Shares of the company are an important source of finance that is being used. These can be common…

Q: What is the difference between book value per share of common stock and market value per share? Why…

A: Book Value per share: Book value per share can be calculated as follows: BVPS =   Total Equity −…

Q: From the firm’s perspective, how are dividends different from interest payments?

A: Even though interest and dividend are two distinct ideas, both are critical components of a…

Q: What is the difference between a stock dividend and a stock split?

A: Stock: It can be defined as the unit that reflects the equity stake or ownership interest in a…

Q: What is stock split? How is it equivalent to paying a dividend?

A: The stock split is events that increase the outstanding shares and reduce the stated par value. For…

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

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: When do dividends become legal debt of the company?

A: Once the dividend is declared by the company, it has to pay dividend in certain deadlines. It…

Q: What effect does the stock split have on Nike’s assets? Its liabilities? Its shareholders’ equity?

A:

Q: Why the dividend does exceeds the balance in retained earnings, the excess referred to as a…

A:

Q: Which of the following is not a method that may be used to account for treasury shares? a. Cost…

A: The treasury shares are the shares which are reacquired by the issuing company from the…

Q: What are the differences between common stocks and preferred stocks in terms of the rights of…

A: The common stock refers to that stock which is common in nature and has the voting rights of the…

Q: tax treatment of dividend income versus capital gains income affect the managers’ decisions to…

A: It is among the common practices in the functioning of an entity to disperse the benefits in the…