Which among the following statement is true? None of the listed choices Equity shareholders receive interim dividends only. Equity shareholders receive final dividends only. Equity shareholders receive Interim dividends or Final dividends.

Which among the following statement is true? None of the listed choices Equity shareholders receive interim dividends only. Equity shareholders receive final dividends only. Equity shareholders receive Interim dividends or Final dividends.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

See similar textbooks

Related questions

Q: When preference share is cumulative, preferred dividends not declared in a period are a. never paid…

A: Answer: When preference share is cumulative, preferred dividends not declared in a period are…

Q: Which of the following is true? * When treasury shares are reissued, the related unrestricted…

A: The treasury shares are the shares that are reacquired by the company from its own shares.

Q: Which item would not be included in the calculation of the diluted EPS? a)None of the listed choices…

A: There are two ways the company calculates earnings from shareholders. This helps the management to…

Q: Which one of the following statements apply only to preference shareholders and not to equity…

A: Preference shares and equity shares are two common classes of shares. They have some distinct…

Q: Which of the following statement is false in regards to Share premium? a. It will be shown under…

A: (a) Share premium will be shown under equity section in the balance sheet (b) Share premium will be…

Q: the total shareholders' equity after the declaration of hare capital dividend a. is greater than…

A: Cash dividends decreases cash and retained earnings. Retained earnings is part of stockholders'…

Q: Analyze the following: I – The features most frequently associated with preference shares exclude…

A: Preference shares are one of the type of shares. These are the shares who get the benefit of…

Q: When a preference share is cumulative and non-participating: a. Any dividends not distributed from…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which one of the following statements is the most correct? A. Preferred stock has a fixed dividend…

A: Preferred stock function as bond and are usually guaranteed a fixed payment in the form of dividends…

Q: All of the following statements are correct, except, a. An investor may have significant influence…

A: The correct answer is given in the following steps for your reference in the following steps.

Q: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…

A: Ordinary share is a common stock which gives ownership of the company.

Q: Dividends in arrears on cumulative preference share a. are considered to be a non-current liability…

A: Solution: Dividends in arrears on cumulative preference share "Should be disclosed in the notes to…

Q: Which of the following is NOT an adjustment to an S corporation shareholder's stock basis?…

A: Shareholders: Shareholders are the owners of the limited company. They hold shares of the company…

Q: The peso equity in corporate capital for each share capital owned by a shareholder is known as?…

A: Share capital is the amount which is contributed and invested by the owner's. This represents 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: Match each description with the characteristic of preferred stock that it best describes. A.…

A: Preferred stock: These stocks are somehow similar to the common stock but hold some privileges in…

Q: Which of the following is NOT one of the common features between preferred stock and common stock? O…

A: The question is related to Common Stock and preferred stock. In ase of preferred Stock the paymemts…

Q: Which of the following is incorrect? * Reacquisition of treasury shares decreases total…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following does not have the right to dividends? outstanding shares treasury shares…

A: All the outstanding shares are entitled to dividends. The shares that have been issued but are not…

Q: Which among the following statement is correct: Interim dividend is usually approved by the…

A: The question is multiple choice Required Choose the Correct Option

Q: Which of the following statements regarding dividends in arrears is false? a. Total dividends in…

A: Dividend is a share in profits of the company distributed among the shareholders.

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: In computing basic EPS, the amount of preference dividends on noncumulative preference shares should…

A: Basic EPS (Earnings per Share) is calculated by dividing the net income earned by the Company by the…

Q: hich of the following statement is the most true A) Preferred dividends in arrears are reported as…

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

Q: Net worth is equal to shareholders' equity: Multiple Choice plus dividends. minus preferred…

A: The formula to compute the net worth is: Net worth = Total Assets + Total Liabilities

Q: All of the following statements are correct, except, An investor may have significant influence…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: What is the journal entry for payment of preference dividend on irredeemable preference shares on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Preferred stock is least likely to have which of the following characteristics?a. Preference as to…

Q: Which of the following is not a common characteristic of preferred stock? Select one: a. Callability…

A: Preferred stock holder means those stock holder who will be getting dividend before the common…

Q: Which of the following is not reported in the statement of changes in shareholders' equity? a.…

A: Shareholders' equity (or corporate net worth) is a measure of how much a company's owners had put…

Q: estion below. ) Which of the following is not a method to pay dividend to shareholders? Options O…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If the preference shares are cumulative and fully participating, how much is the dividends to be…

A: Formula: Dividends to common share holders = Total dividends - preferred dividends

Q: Under dividend reinvestment plans, shareholders can automatically ____. a. transfer from retained…

A: dividend reinvestment plans is a plan which allows shareholder of the firm to reinvest there cash…

Q: The biggest advantage of common stockholders is that they have __________ which is not available…

A: Equity shareholders are the investors that invest into the ownership of the company. They are the…

Q: hat are dividends in arrears? How do they affect the allocation of dividends to preference and…

A: Dividends in arrears means that dividends have accrued but have not yet been paid due to inadequate…

Q: If a preferred stock is of the cumulative type, a. dividends cannot be passed if they are earned.…

A: Preferred stock carry fixed rate of dividends that must be paid each year.

Q: The total shareholders' equity after he declaration of hare capital dividend. a. may be more…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: 14. What are dividends in arrears? How do they affect the allocation of dividends to preference and…

A: Dividends in arrears means dividend payable by company to its preference shareholders which is not…

Q: Which of the following statements about preferred shares is inaccurate? Select one: a. Preferred…

A: Preference Shares is that part of capital of the business raised from public which carries fixed…

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: Gain on sale of treasury shares should be credited to: * A. Share Premium from treasury shares…

A: Gain on sale of treasury shares is credited to a specific account for gain.

Q: Which statements are true? 1. [S1] Preference shares are considered a hybrid type of financing…

A: Preference shares are those shares which have preferred right on dividend before equity shares while…

Q: Which of the following statements is false? A The declaration of a dividend may not result in a…

A: Dividend: Distribution of company profits to the shareholders ( Real owners of the company ) is…

Q: On Long-term Debt, Equity and Capital Structure Statement I: Participating preferred stock means…

A: Lets understand the basics here. Company issues shares to the public to obtain the capital from…

Q: Which of the following statements regarding dividends in arrears is false? Question options: a…

A: Dividend in arrears means the amount of dividend which was not paid due to insufficient funds in…

Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

Question

Plz solve !!

Which among the following statement is true?
None of the listed choices
Equity shareholders receive interim dividends only.
Equity shareholders receive final dividends only.
Equity shareholders receive Interim dividends or Final dividends.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which one of the following statements is the most correct? A. Preferred stock has a fixed dividend that does not change. B. All classes of common stock have one vote per share. C. Common shareholders elect the CEO of the company D. Dividends are tax-free income for individual investors.
Which one of the following statements apply only to preference shareholders and not to equity shareholders a. Shareholders risk the loss of investment b. Shareholders bear the risk of no dividends in the event of losses c. Shareholders usually have the right to vote d. Dividends are usually given at a set amount in every financial year
Which of the following statement is false in regards to Share premium? a. It will be shown under equity section in the balance sheet b. It will be credited at the time of issue of new shares along with premium c. It cannot be distributed as dividend to the shareholders d. It can be distributed as dividend to the shareholders
All of the following statements are correct, except, a. An investor may have significant influence even if it has 15% voting power. b. An investor may not have significant influence even if it has more than 20% voting power. c. Under the equity method that is used to account for investment in associates, cash dividends are treated as income. d. Share dividends do not result to a change in the total equity of the investee.
All of the following statements are correct, except, An investor may have significant influence even if it has 15% voting power. An investor may not have significant influence even if it has more than 20% voting power. Under the equity method that is used to account for investment in associates, cash dividends are treated as income. Share dividends do not result to a change in the total equity of the investee.
Considering the same amount of earnings available for declaration as dividends, which of the following kinds of preference shares would result to the least amount of dividends for preference shareholders? cumulative and non-participating cumulative and participating non-cumulative and non-participating non-cumulative and participating
Which of the following statements is CORRECT? Group of answer choices The component cost of preferred stock is expressed as rp(1 - T). This follows because preferred stock dividends are treated as fixed charges, and as such they can be deducted by the issuer for tax purposes. A cost should be assigned to retained earnings due to the opportunity cost principle, which refers to the fact that the firm’s stockholders would themselves expect to earn a return on earnings that were paid out rather than retained and reinvested. No cost should be assigned to retained earnings because the firm does not have to pay anything to raise them. They are generated as cash flows by operating assets that were raised in the past, hence they are “free.” Suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. In this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the WACC will both be…
Which of the following statements is not true about preferred stock? A.The rate of dividend is usually fixed B.Stockholders' usually have a preference as to dividends C. Stockholders always have a voting right D. Stockholders' usually have a preference as to assets upon liquidation of the corporation
The following statements are true regarding dividends. Which of the following is incorrect? a) Dividends are distributions of earnings or capital to shareholders in proportion to their shareholdings. b) If an entity has a deficit, paying dividends is still considered legal. c) Liquidating dividends are distributions of capital to shareholders in proportion to their shareholdings. d) The common forms of dividends out of earnings are cash dividend, property dividend and share dividend.
the total shareholders' equity after the declaration of hare capital dividend a. is greater than the total shareholders' equity before the declaration b. may be more than or less than the total shareholders' equity before the declaration depending on whether the share capital dividend declared is small or large c. is the same as the total shareholder's equity before the declaration d. a less than the total shareholders' equity before the declaration
What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: Preference share capital are noncumulative Preference share capital are cumulative
Choose the incorrect statement below: A. Retained earnings are the funds contributed by shareholders in excess of par or stated value.B. Equity is defined as the residual interest in the assets of an entity after deducting all of the liabilities.C. Conversion of preference shares into ordinary shares directly affects retained earnings.D. The statement of changes in equity is a formal statement that shows the movements in the elements or components of the shareholders' equity.