The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by small stock dividends and benefit by the market value of their additional shares. Explain this statement. Is it logical?

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: What is the accounting for treasury share transactions? a. On repurchase or re-issuance of…

A: Hi since you have asked a question with multiple questions we are solving the 1st question for you.…

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 issue as to whether dividend policy has an effect on share prices raises a question as to…

A: Bird in hand theory of dividend policy says that investors prefer dividend as compared to capital…

Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: It is the decision taken by board of directors whether to issue preference shares/stock.

Q: False

A: 1) Primary markets are markets are markets where companies make new issue of shares to the general…

Q: When a company issues STOCK DIVIDENDS, what happens to the market value of its stock and what…

A: A company sometimes issue stock dividends in which instead of paying the shareholders cash dividends…

Q: hich of the following is true of (ordinary) preferred shares? The larger a company’s profit, the…

A: The preferred shares are those shares that get the dividend before the common stock. The preferred…

Q: cummulative preferred stock confers the right to be paid both and all prior periods unpaid cash…

A: Introduction: Dividends: Dividends are owners profit. Dividends are given to shareholders of the…

Q: When it comes to accounting for stock dividends, what is the difference between the accounting for a…

A: In the stock market, dividends are paid out to shareholders:

Q: Standard requires every stock corporation to disclose the amount of unrestricted retained earnings…

A: treasury stock has another name treasury shares are required shared means previously outstanding…

Q: Discuss why stock dividend and stock split are not real dividend issues.

A: A dividend is a circulation of benefits by an organization to its investors. At the point when a…

Q: Which of the following is false? a.   Under GAAP, companies cannot record gains on transactions…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: Which of the following balance sheet accounts will be affected by a stock dividend but not by a…

A: A stock dividend is a dividend paid to the shareholders that are paid through shares rather than…

Q: Which of the following disclosures regarding stock is not required to be reported on the balance…

A: Financial statements are set up accounts that pass on the business exercises and the monetary…

Q: Neptune Corporation is following the residual dividend policy with regard to the payment of cash…

A: Dividends are distribution of surplus profits by a firm to its shareholders as a return for…

Q: hy would a company choose to not pay dividends on its common stock?

A: Dividends are the return earned by the shareholders in lieu of the amount invested in company's…

Q: How would the declaration and subsequent issuance of a small stock dividend affect share capital and…

A: Small stock dividend means the issue of shares less than 25% of the total outstanding shares in the…

Q: Which statement is FALSE? O A. Preferred stockholders receive assets before the common stockholders…

A: The preference shareholders are also known as preferred stock boulders. The stockholders have the…

Q: A stock split will cause a change in which of the following items?     Cash     Common stock…

A: Stock Split will be reflective of the corporate event in which the share of company will be splitted…

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: Which of the following is not true for Book Value of a share? * It depends on the balance sheet…

A: Book value of share: The book value is calculated on the basis of the book value of assets and…

Q: A feature common to both stock splits and stock dividends is Select one: a. That there is no effect…

A: A feature common to both stock splits and stock dividends is that there is no effect on total…

Q: hich of the following transactions would most likely affect shareholders’ equity? Group of answer…

A: The shareholders' equity is recorded in the statement of financial position of the business i.e.…

Q: What is the effect on the accounting equation when a stock dividend is declared? What is the effect…

A: Stock Dividends:  It refers to the payment of the dividend to its shareholders by the corporation in…

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 the accounting for treasury share transactions?    a. Treasury shares are accounted for as…

A: Answer) The correct answer in the given question is: (c) On re-issuance of treasury shares, a gain…

Q: Diluted earnings per share shows dilution resulting from additional shares that may be issued for…

A: 1. Diluted earnings per share - Dilution of shares is the process of issuing additional shares and…

Q: Which feature is not applicable to common stock ownership?a. Right to receive dividends before…

A: Common stock: It can be defined as the form of corporate equity that represents the ownership…

Q: The directors of Merchant Corporation are considering the issuance of a stock dividend. They have…

A:

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

A:

Q: If a company repurchases its own stock, the journal entry to record this transaction will cause…

A: According to the question, the statement seems to be False. Thus we can say that "If a company…

Q: The journal entry to record a stock dividend causes the Common Stock account to increase. True False

A: Stock dividend can be defined as the method of redistributing the profits of the company back to its…

Q: Which of the following statements is incorrect?

A: Capital of the company is divided into units of small denomination and each unit is called a share.…

Q: ent date AN

A: Announcement Date is the date which is declared by the company for payment of dividend. This is also…

Q: A major difference between common and preferred stock Seleccione una: a. is that common stockholder…

A: Common stock and preferred stock are different. Common stock is stock that holds the ownership in…

Q: Indicate whether statements regarding dividends is true or false. Stock dividends help keep the…

A: Dividend is the amount of profit which is distributed to the shareholders as a return on the shares.…

Q: Which of the following affects the total Shareholders’ Equity?     a. Declaration of a scrip…

A: a Declaration of a scrip dividend :- this dividend is paid to shareholders  at later date , company…

Q: why is this statement false? Small and large stock dividends have no effect on the Common Stock…

A:

Q: What is most likely to happen to the earnings per share and market price of a certain stock when a…

A: Stock Dividend: A firm issues stock dividends instead of paying cash to its share holders and…