What is true about dividends? Dividends are typically paid in stock but sometimes in cash and are distributed to all owners and creditors of the firm Dividends are typically paid in cash but sometimes in stock and are distributed to all owners and creditors of the firm Dividends are typically paid in stock but sometimes in cash and are distributed to all owners of the firm Dividends are typically paid in cash but sometimes in stock and are distributed to all owners of the firm

What is true about dividends? Dividends are typically paid in stock but sometimes in cash and are distributed to all owners and creditors of the firm Dividends are typically paid in cash but sometimes in stock and are distributed to all owners and creditors of the firm Dividends are typically paid in stock but sometimes in cash and are distributed to all owners of the firm Dividends are typically paid in cash but sometimes in stock and are distributed to all owners of the firm

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6TP: As a bakery business continues to grow, cash flow has become more of a concern. The board of...

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Your friend has questions about retained earnings and dividends. How do you explain to him that dividends are paid out of retained earnings?
When a firm is short of cash yet it wishes to distribute something to shareholders, it should consider a ________ a. Cash dividend b. Liquidating dividend c. Stock dividend d. Rights shares
The correct order in which investors are entitled to the cash flow of a firm is generally preferred shareholders first then bondholfsrs then common shareholders last True False
People who own stock are called STOCKHOLDERS, and they ______________________ must be paid dividends. hope to be paid dividends. must be paid interest. hope to be paid interest
Which of the following is NOT a form of corporate dividend? A. regular cash dividend B. special cash dividend C. stock dividend D. These are all forms of corporate dividends.
A stakeholder is: a. a person who owns shares of stock.b. a person who initially founded a firm and currently has management control over that firm.c. a creditor to whom a firm currently owes money.d. any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm.
Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders? Interest Distribution Dividend retained earnings
The decision to pay a cash dividend is within the jurisdiction of A. the board of directors of the firm B. the firm's largest labor union C. the largest shareholders of the firm
Question Which of the following is NOT a form of corporate dividend? A. regular cash dividend B. special cash dividend C. stock dividend D. These are all forms of corporate dividends.
Question The decision to pay a cash dividend is within the jurisdiction of . A. the board of directors of the firm B. the firm's largest labor union C. the largest shareholders of the firm
The effect of the declaration of a cash dividend by the board of directors is to Increase Decrease Stockholders' equity Assets Liabilities Stockholders' equity Assets Liabilities Liabilities Assets
The use of homemade dividends allows stockholders to change the: A. cash payout received by selling off shares to receive current income. B. return pattern of the firm by leveraging their position like the firm. C. value of the company by increasing shareholders' cash payout D. Both A and C. E. Both B and C.

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		Dividends are typically paid in stock but sometimes in cash and are distributed to all owners and creditors of the firm
		Dividends are typically paid in cash but sometimes in stock and are distributed to all owners and creditors of the firm
		Dividends are typically paid in stock but sometimes in cash and are distributed to all owners of the firm
		Dividends are typically paid in cash but sometimes in stock and are distributed to all owners of the firm