Other than from retained earnings, dividends may be declared out of: Choose one answer. a. Paid in capital in excess of par value b. Paid in capital in excess of issued price c. Neither a nor b d. Both a and b

Other than from retained earnings, dividends may be declared out of: Choose one answer. a. Paid in capital in excess of par value b. Paid in capital in excess of issued price c. Neither a nor b d. Both a and b

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Description: Other than from retained earnings, dividends may be declared out of: Choose one answer.a. Paid in capital in excess of par valueb. Paid in capital in excess of issued pricec. Neither a nor bd. Both a and bAdd an explanation, please. Thanks

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 28MC: What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both...

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Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
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Which one of the following will increase shareholders' equity, all else held constant? Select one: a. A sale of inventory at a profit. b. The collection of an account s receivable. c. A payment on a loan. d. A purchase of equipment on account. e. The declaration of a stock dividend.
a. Where should a declared but unpaid cash dividend be reported on the balance sheet?b. Where should a declared but unissued stock dividend be reported on the balance sheet?
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
For each item below, indicate to which category of elements of financial statements it belongs. (Asset, liabilities, equity, none of them) a. Retained earnings. c. Share Premium. e. Depreciation. g. Interest payable. i. Gain on sale of investment. b. Sales. d. Inventory. f. Loss on sale of equipment. h. Dividends. j. Issuance of ordinary shares.
In the Statement of Changes in Equity, the result from the Statement of Profit or Loss is always added to the Beginning Capital to get the Ending Capital amount. TRUE FALSE
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TRUE OR FALSE?Dividends declared is an addition to retained earnings beginning to compute for the retained earnings ending.
Which of the following regarding retained earnings is false?a. Retained earnings is increased by net income.b. Retained earnings is a component of stockholders’equity on the balance sheet.c. Retained earnings is an asset on the balance sheet.d. Retained earnings represents earnings not distributed tostockholders in the form of dividends
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hen treasury stock is sold for less than its cost, the entry should include a debit toa. Gain on Sale of Treasury Stock.b. Loss on Sale of Treasury Stock.c. Retained Earnings.d. Paid-in Capital in Excess of Par