similarities and differences between paid in capital and retained earnings?

Q: These are cumulative profits which are retained in the business and not yet distributed to the…

A: We prepare the following financial statements -  Income statement Balance sheet Cash flows statement…

Q: Describe the role that dividends and capital gains play in delivering returns to common stock…

A: A dividend is a payment made to stakeholders by a corporation. When a company makes a profit or has…

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: stockholders equity, paid in capital , retained earnings and net

A:

Q: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: Which does not affect total shareholders’ equity? a. Stock dividend b. Scrip dividend c. Cash…

A: The dividend is paid to the shareholders from the retained earnings of the business.

Q: Corporations with simple capital structures (only Common Stock issued) need not present Earnings per…

A: true  Corporations with simple capital structures (only Common Stock issued) need not present…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: mount of dividends that a corporation may declare? a. Cash flow test b. Book value test c.…

A: The right answer is d. Income to expense ratio test

Q: How does the return on common equity show the relationship between net income and the common…

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: Which of the following is NOT a form of corporate dividend? A.        regular cash dividend B.…

A: Dividend: It can be defined as the distribution of the net profits of the company to its…

Q: Comparing dividends per share to earnings per share indicates the extent to which the corporation is…

A: Dividend is the amount distributed to the shareholders out of excess profits.

Q: id-in-capital and retained earnings: Similar? Different? What are the main categories of paid-in…

A: It is usually split into two different line items: common stock (par value) and additional paid-in…

Q: Which one of the following statements is NOT true relating to dividends? 1. Dividends are a portion…

A: 5. 2. Dividends need not be declared solely from the profit of the current year include profits from…

Q: The date of record is the date: Group of answer choices A)On which the board of directors of a…

A: The date of record is the date on which the company checks its records to identify shareholders of…

Q: Dividend policy determines the ratio between the earnings distributed to shareholders and the…

A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

Q: Exactly when does a corporation decide to pay out a cash dividend?

A: -CASH DIVIDEND:  Cash dividends are considered Assets because they increase the net worth of…

Q: Which statement regarding dividends is false?a. Dividends represent a sharing of corporate profits…

A:

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 total amount of cash and other assets received by a corporation from the stockholders in…

A: (A) Paid-in Capital: It is the amount paid by the stockholders of an entity in exchange of its…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: Does the offer of receiving cash dividend and stock repurchase make any differences to an individual…

A: There are 2 concepts asked in the questions: - 1. Dividend on stock: In a general company, a…

Q: Why might earnings per share be more significant to a stock-holder in a large corporation than the…

A: Earnings per share: It is calculated by dividing the net income after making adjustments for…

Q: The total amount of cash and other assets received by a corporation from the stockholders inexchange…

A: Shares are an important source of finance that is being used by most of the companies. Shares can be…

Q: The balance of the income summary account of a corporation is transferred to which of the following…

A: Lets understand the basics. Net income is earned when revenue exceed the expenditure of corporation.…

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

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

Q: Which statement is incorrect?  a. Book value per share is the claim of a shareholder in the net…

A: A share is the division in the capital of the company. A shareholder is entitled to receive division…

Q: If the corporation when formed sets a par value for its shares low and issue common stock for a…

A: Common stock: These are the shares that are issued by the company against the money which is…

Q: It is the share of profits and retained earnings that a company pays out to its shareholders. * O…

A: Ordinary shares, preference shares and debt capital are three types of sources by which company can…

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: Cash dividends paid by a corporation OA. are an expense of the corporation that declared the…

A: Cash dividends is not an expense or loss because it is not charged from the income statement. It is…

Q: Why would a company’s return on total assets be different from its return on common stockholders’…

A: Equity: Each company needs finance to run the business. Equity is one of the method through which…

Q: Which of the following scenarios does a donated capital arise? * Forgiveness of an existing loan…

A: Donated Capital. It arises when someone is giving assets, securities or treasury stocks. shares…

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: How and why should the cost of capital change when the Company must rely on new issues of common…

A: Issuance of new stock is the process by which a listed company tries to acquire additional capital…

Q: What are the distribution of either cash or stock to shareholders by a corporation called?

A: A corporation distributes the amount of its earnings in form of cash or stock to its investors or…

Q: When a corporation declares a cash dividend, the entry include a a. debit to net income b. credit…

A: The correct entry for declaration of dividend is:   Account Titles and Explanation  Debit…

Q: The balance in retained earnings is not affected by Choose net income. aluation of a company's…

A: Retained earnings is an accumulation of net income or loss over a period of time and it is…

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…