A company uses its paid-in capital (in addition to retained earnings) to pay dividends. A company distributes another company’s shares as dividends. A company distributes its own shares as dividends. What types of dividends are involved, respectively? Enter 1, 2, 3, or 4 that represents the correct answer.   1. property dividends, stock dividends, liquidating dividends, respectively. 2. property dividends, liquidating dividends, stock dividends, respectively. 3. liquidating dividends, property dividends, stock dividends, respectively. 4. liquidating dividends, stock dividends, property dividends, respectively.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 36MCQ
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For the following three situations:

A company uses its paid-in capital (in addition to retained earnings) to pay dividends.

A company distributes another company’s shares as dividends.

A company distributes its own shares as dividends.

What types of dividends are involved, respectively? Enter 1, 2, 3, or 4 that represents the correct answer.

 

1. property dividends, stock dividends, liquidating dividends, respectively.

2. property dividends, liquidating dividends, stock dividends, respectively.

3. liquidating dividends, property dividends, stock dividends, respectively.

4. liquidating dividends, stock dividends, property dividends, respectively.

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