Answered: The final distribution of cash to…

The final distribution of cash to shareholders after a company has been sold off or discontinued operations is called a dividend. A. complete B. liquidating C. stock D. optimal

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 12E

See similar textbooks

Related questions

Q: The maximum amount of cash dividend that the company can declare and pay is:

A: There are two types of dividend namely interim dividend and final dividend. Interim Dividend can be…

Q: Problem #1 Effects of Transactions Indicate the effects of each of the following transactions on…

A: Indicating the effects -

Q: Cash dividends, property dividends, and scrip dividends are examples of dividends that_ Select one:…

A: Retained Earnings - Retained Earnings is the company's accumulated earnings that is retained by the…

Q: Stockholders' equity a.includes paid-in capital and liabilities b.includes retained earnings and…

A: Shareholders equity indicates the total amount of finance including preferred stock and common…

Q: the declaration of cash dividends and stock dividends both reduce retained earnings

A: Solution- Cash Dividends Cash dividends affect two areas on the balance sheet: the cash and…

Q: The cumulative effect of the declaration and payment of a cash dividend on a company’s financial…

A: The cumulative effect of the declaration and payment of a cash dividend on a company’s financial…

Q: What is the result of stock dividends? O a. Retained earnings decrease while total paid-in capital…

A: Stock dividend means when a company declares Stock (Common shares) as dividends to its various…

Q: he final distribution of cash to shareholders after a company has been sold off or discontinued…

A: At the time of liquidation of corporation, firstly all non cash assets are sold out, liabilities are…

Q: How do Dividends Paid impact Declan's Designs' Statement of Cash Flows? Question 30 options:…

A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…

Q: Any dividend that is considered to be a liquidating dividend will: A. Reduce retained earnings.B.…

A: Liquidating dividend are paid by the company in case of insolvency or the company can not pay its…

Q: Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?…

A: Cash flow is a statement that provide data regarding cash inflow and cash outflow of the company…

Q: Which of the following items could appear in a company's cash flow statement? 1. Proposed dividends.…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: The amount of cash a company paid in dividend can be found in the balance sheet. True O False

A: When a company declares dividend , dividend payable account is credited and retained earnings is…

Q: What are the distributions to the stockholders by a firm called? A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: In preparation of cash flow statement, declaration and payment of dividends on company stock is…

A: Cash flow statement is a statement which shows all cash inflows and cash outflows of the business…

Q: Indicate whether statements regarding dividends is true or false. Cash and stock dividends reduce…

Q: Which of the followings we start with it to construct the cash flow statement :- Select one: a. Net…

A: Cash flow statement is constructed starting with net income available to common stock. Operating…

Q: The effect of the declaration of a cash dividend by the bc Increase Stockholders' equity Decrease a.…

A: Solution: The effect of declaration of cash dividend by board of director is to "Increase…

Q: Issuance of stock dividends would appear in the statement of cash flows as: An increase in cash in…

A: The cash flow statement is prepared to find net cash inflow or outflow from the business.

Q: When treasury stock accounted for by the cost method is subsequently sold for more than its purchase…

A: Treasury stock refers to the shares which were bought back by the issuing company which was…

Q: r anything other than net income or dividends. olders are guaranteed to receive in company liquidat…

A: Given: The correct option is given as,

Q: When would a company be able to declare a cash dividend?

A: Dividend means the amount given to shareholder of the company as profit distribution by company.

Q: How do Dividends Paid impact Declan's Designs' Statement of Cash Flows? Question 30 options:…

A: Financing Activities - All the issues and purchases of shares, Payment of Dividends, Issuance, and…

Q: Share dividends OA. have no effect on total shareholders' equity OB. are distributions of cash to…

A: Lets understand the basics. Common stockholders invested in stock in order to gain soeme return on…

Q: Dividends representing a return of invested capital is known as a. stock dividend b. scrip dividend…

A: Dividends are paid to the investors by the company out of profit of the company. They are paid to…

Q: A distribution of earned profits in the form of cash, property or stock Appropriation Dividend…

A: The shareholders have the right to get share of the profits earned by the business.

Q: Retained earnings: A. Represent the amount of cash available to pay shareholders. O B. Equal total…

A: Retained earnings defined as the amount that is left over for the business from the total income…

Q: Cash receipts from share issuances are: a. operating activities b. financing activities c.…

A: Cash Flow Statement is prepared to show the flow of cash of the firm during the accounting period.…

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: When does a company declare a cash dividend

A: A dividend is a share of profits and retained earnings that a company pays out to its shareholders.…

Q: corporation disbursed cash dividends to its stockholders. On that c otal amount of the dividend is…

A: A decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to…

Q: If a company sells new shares of stock to raise money, this will result in a ____ to the contributed…

A: The contributed capital by selling new stock is a method of raising finance for the business entity.…

Q: Question The final distribution of cash to shareholders after a company has been sold off or…

A: Discontinued operations: It can be defined as the shut down of the company’s core operations.

Q: The effect of a stock dividend is to change the composition of stockholders' equity. decrease total…

A: Solution The journal entry for issuance of stock dividend is Retained earnings debit Common stock…

Q: Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B)…

A: The shareholder's equity section is a section of the company's balance sheet. It is a section that…

Q: e When does a company declare a cash dividend? d) Which characteristic of a corporation limits a…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: Cash dividends decrease the assels and decrease the retained earnings ofa corporation. OTrue O False

A: The shareholders of the business gets the share of profits in the form of dividend. The dividend can…

Q: i) Central to the previous calculations of company valuations are the payment of dividends. The…

A: A company can issue two types of shares: preference shares and equity shares. Preference shares are…

Q: Dividend payments reduce all the following balance sheet items except fixed costs retained earnings…

A: Dividend payments reduce all the following balance sheet items retained earnings stockholder's…

Q: The appropriate section in the statement of cash flows for reporting conversion of preferred stock…

A: Statement of cash flows is the statement which shows all cash inflows and cash outflows of business…

Q: The cumulative effect of the declaration and distribution of a stock dividend on a company's balance…

A: Stock Dividend is where stocks are distributed as dividend to shareholders. In stock dividend , the…

Question

The final distribution of cash to shareholders after a company has been sold off or discontinued operations is called a dividend.

A. complete

B. liquidating

C. stock

D. optimal

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

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

Declaration of cash dividends will … a. Increase the retained earnings b. Increase the stockholders’ equity c. Decrease the retained earnings d. Decrease the total equity Entries for dividends are required on the … a. Declaration date and payment date b. Declaration date and record date c. Record date and declaration date d. Payment date and record date
Question The final distribution of cash to shareholders after a company has been sold off or discontinued operations is called a dividend. A. complete B. liquidating C. stock D. optimal
Liquidating dividends are credited to a. incomeb. Retained earningsc. Investment accountd. share capital
Dividends representing a return of invested capital is known as a. stock dividendb. scrip dividendc. property dividendd. liquidating dividend
he final distribution of cash to shareholders after a company has been sold off or discontinued operations is called a/an ________ dividend. complete liquidating stock optimal
Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c. Reduce total stockholders’ equity. d. Reduce retained earnings.
In preparation of cash flow statement, declaration and payment of dividends on company stock is which activity? A. Operating B. Investing C. Financing
Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock? A. Fiancing B. Operating C. Investing D. None of the above
In preparing a statement of cash flow, sale of treasury shares at an amount greater than cost would be classified as a/an a. operating activity b. investing activity c. financing activity d. share capital activity
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 are the distributions to the stockholders by a firm called? A. retained earningsB. net incomeC. dividendsD. capital payments
How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It results in an increase to liabilities and a decrease to stockholders’ equity, while assetsremain the same.b. It results in an increase to liabilities and a decrease to assets, while stockholders’ equityremains the same.c. It results in an increase to assets and a decrease to liabilities, while stockholders’ equityremains the same.d. It results in an increase to stockholders’ equity and a decrease to assets, while liabilitiesremain the same