If the company decides to declare a share dividend instead of cash, explain the effects on the company's asset, liability and equity.

Q: "If management wishes to capitalize part of the earnings, it may issue a" share dividend.…

A: Dividend are the share or part of profits that is being distributed or divided to the shareholders…

Q: The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase…

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

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

Q: When a company pays a dividend on ordinary shares, it appears as

A: When a company pays a dividend on ordinary shares, it appears as: Select one: a. a current liability…

Q: If an entity has issued cumulative redeemable preference shares to the market, discuss what effects…

A: Preference shares are those shares on which a fixed rate of dividend is paid by the company. At the…

Q: Which one or more of the following would you not include within the heading Equity and Reserves in a…

A: Equity and reserves that are shown under statement of financial position means all amount…

Q: Discuss the accounting treatment or disclosure that should be accorded a declared but unpaid cash…

A:

Q: Which of the following methods of valuing shares will be most appropriate for a prospective investor…

A: To acquire another firm, the company has to pay purchase consideration to the investors of the…

Q: d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: Which of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

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 distinction between that of Paid-in-Capital and Retained Earnings, in both differences…

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

Q: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: The following statements are true regarding dividends. Which of the following is incorrect?   a)…

A: Dividend is the amount which is paid to the shareholders for investing their money into the shares.…

Q: How is the accounting for a purchase of a company’s own stock (treasury stock) different from the…

A: A company’s stock is the shares a company holds or the shares on which a company has its ownership…

Q: Which of the following does not appear under the heading: Capital and reserves in a company balance…

A: Capital and reserves head of the balance contains the information regarding share capitals and…

Q: (d) Explain and justify the accounting treatment for share dividends and share splits.

A: Share dividend is the form of dividend in which company issue shares as dividend rather than cash.…

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: Why do companies often repurchase stock instead of paying cash dividends? What is the effect for the…

A: Dividends are the returns that will be paid to the investors who hold the stock of the company. This…

Q: Explain the accounting for share capital issued for non-cash consideration.

A: The share issue is the most common way in order to arrange funds for the business of the company.…

Q: When purchasing a company's stock, what would be your primary factors in valuing that stock?

A: Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to…

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 is true of a stock dividend?A. It is a liability.B. The decision to issue a…

A: Dividend is the part or share of profit that is being distributed to the shareholders. It can be in…

Q: What is advantges and dis advantge of shares repurchacse to the company

A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…

Q: The costs of legal, promotional, and accounting services necessary to effect the sale of shares are…

A: Share issue cost: Cost such as legal fee, promotional charge, and accounting services incurred for…

Q: What is a stock repurchase? Describe the procedures a company follows when it makes adistribution…

A: Stock repurchase means a company instead of giving cash as dividends to the shareholders buys their…

Q: statements correctly relate to ordinary shares? i) They represent an ownership interest. ii)…

A:

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: Which of the following is shown on a statement of cash flows? A share dividend A share split

A: Cash Flow Statement is a statement whic show the movement of cash during the particular financial…

Q: A company’s assets and shareholders’ equity are most likely to be increased by Share rights…

A: Stockholder's equity includes a company's cumulative earnings and the amount of capital invested by…

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: How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity?…

A: Stock dividends:   Stock dividends are dividends paid in the form of additional stock rather than in…

Q: Which statement best describes a possible result of treasury shares transactions? * May increase but…

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

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: Describe in general the various methods of accounting for an investment in equity shares of another…

A:

Q: The distribution of a dividend that represents a partial return of the original investment made by…

A: Dividends can be paid in a number of different forms, including cash, stocks, and other assets. A…

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

A:

Q: Generally, once declared, a cash dividend on ordinary shares becomes a liability of the corporation.…

A: Cash dividend is the amount of return paid to the shareholders of the entity from the profits.