Answered: 14. When a company declares a cash…

14. When a company declares a cash dividend, which of the following is true? a.Assets are decreased. b.Assets are increased. c.Liabilities are increased. d.Shareholders' equity is increased.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.21E

See similar textbooks

Related questions

Q: A company uses its paid-in capital (in addition to retained earnings) to pay dividends. A company…

Q: Which of the following items could appear in a company's cash flow statement? O 1 and 3. 1. Proposed…

A: A transaction appears in Cash flow statement only when there is movement of cash is involved in such…

Q: When a company pays dividends a) the dividends account will be decreased with a debit. b) it doesn't…

A: >Dividends are the payments made to the stockholders for the amount invested by them in form of…

Q: Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B)…

A: Stockholders' equity consists of common stock, paid-in capital, treasury stock and retained…

Q: 19. Which of the following statements relating to earnings per share is not true? __________ It is…

A: Ratio analysis is a technique that is used to gain insight into the organization's profitability,…

Q: When the Dividends account increases, how is the Accounting Equation impacted? O Decrease…

A: Dividends are the distributions that a company makes out of the earned profits to its shareholders…

Q: Which of the following financial statements shows how net income (loss) and dividends impacted a…

A: Out of the profit earned by the business organization, some of the profit is distributed by them to…

Q: 2. Declaration of cash dividends will ... a. Increase the retained earnings b. Increase the…

A: 2. Declaration of cash dividends are the distribution of earnings deducted from the retained…

Q: The amount of cash a company paid in dividend can be found in the balance sheet. True O False

A: When a company declares dividend , dividend payable account is credited and retained earnings is…

Q: Which of the following occurs when a previously declared dividend is paid? Assets increase Equity…

Q: The effect of the declaration of a cash dividend by the board of directors is to Increase…

A: Cash Dividend A cash dividend is the distribution of fundss or cash paid to stockholderss usually as…

Q: How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: All else equal, which of the following actions will increase the amount of cash on a company’s…

A: Balance sheet is a part of the financial statements that lists the company's assets, liabilities,…

Q: 22. Which of the following is not included on the statement of changes in stockholders’ equity? a.…

A: Statement of changes in stockholders' equity is a part of financial statements to show the changes…

Q: Revaluation surplus of a company will be shown in a. Statement of cash flows b. iIt will be shown…

A: revaluation surplus is an equity account where any upward changes in the value of capital assets…

Q: Retained earnings: A. Represent the amount of cash available to pay shareholders. O B. Equal total…

A: Retained earnings defined as the amount that is left over for the business from the total income…

Q: All of the following will decrease retained earnings, except … a. Cash dividends b. Net loss c. Net…

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

Q: 12. All of the following are financing cash flows EXCEPT A. sale of stock. B. payment of stock…

A: 12. Sale of stock is a financing activity. Payment of stock dividend is a Non cash expenses.…

Q: The net effects on the corporation of the declaration and payment of a cash dividend are to 1.…

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

Q: :Retained earnings .Equal total stockholders' equity less treasury stock at the end of the period A…

A: Retained earning means an amount of net profit or loss which is accumulated over the past few years.…

Q: .6. When a corporation declares a cash dividend to preferred shareholders: a. total liabilities…

A: When a corporation declares a cash dividend, it will be debited from retained earnings. The amount…

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: Q39 Return that a shareholder gets from the company, out of its profits, on his shareholdings, is…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: QUESTION 52 Indicate the effect of the following event on the company's accounting equation. For…

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

Q: 1. Which of the following statements is correct? A. Assets on the balance sheet include retained…

A: Balance sheet equation is Total assets = Total liabilities + owners equity

Q: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: 3. What is the total shareholders' equity after 1. What amount should be reported as total assets in…

A: The value of the things or the accounts which a company has recorded on the cost basis is changed…

Q: Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c.…

A: Cash dividend is a cash payment by a company to shareholders in the form of dividend. If company…

Q: i) Central to the previous calculations of company valuations are the payment of dividends. The…

A: A company can issue two types of shares: preference shares and equity shares. Preference shares are…

Q: What would be the impact on the accounting equation when a company acquires treasury stock?…

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of the…

Q: Contrast the effects of a (a) cash dividend, (b) stock dividend, and (c) stock split on a company's…

A: Stock split is the number of shares increases when the company declares stock spilt, but the marker…

Q: The cumulative effect of the declaration and distribution of a stock dividend on a company's balance…

A: Stock Dividend is where stocks are distributed as dividend to shareholders. In stock dividend , the…

Q: A company has a 12% ROA. Assume that a company’s total assets equal total invested capital, and that…

A: A ratio that helps a company to evaluate the profitability of its assets is term as the ROA (return…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

14.

When a company declares a cash dividend, which of the following is true?

a.Assets are decreased.

b.Assets are increased.

c.Liabilities are increased.

d.Shareholders' equity is increased.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

The total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is ________. A. always equal to par value B. referred to as retained earnings C. always below its stated value D. referred to as paid-in capital
Define each of the following terms: Annual report; balance sheet; income statement Common stockholders’ equity, or net worth; retained earnings Statement of stockholders’ equity; statement of cash flows Depreciation; amortization; EBITDA Operating current assets; operating current liabilities; net operating working capital; total net operating capital Accounting profit; net cash flow; NOPAT; free cash flow; return on invested capital Market Value Added; Economic Value Added Progressive tax; taxable income; marginal and average tax rates Capital gain or loss; tax loss carryforward Improper accumulation; S corporation
How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It results in an increase to liabilities and a decrease to stockholders’ equity, while assetsremain the same.b. It results in an increase to liabilities and a decrease to assets, while stockholders’ equityremains the same.c. It results in an increase to assets and a decrease to liabilities, while stockholders’ equityremains the same.d. It results in an increase to stockholders’ equity and a decrease to assets, while liabilitiesremain the same
6When a company declares a cash dividend, which of the following is the correct reporting on the statement of cash flows? A use of cash in the operating section. A use of cash in the investing section. A use of cash in the financing section. As a significant non-cash financing and investing activity.
Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c. Reduce total stockholders’ equity. d. Reduce retained earnings.
4 Which of the following financial statements shows how net income (loss) and dividends impacted a stockholders' equity account? Statement of Retained Earnings Balance Sheet Statement of Cash Flows Income Statement
12. All of the following are financing cash flows EXCEPTA. sale of stock.B. payment of stock dividends.C. increasing debt.D. repurchasing stock. 13. All of the following are operating cash flows EXCEPTA. net profit/earnings after tax.B. increase or decrease in current liabilities.C. increase or decrease in fixed assets.D. depreciation expense.
What does the retained earnings account measure?a) Cash held by the company since its inception.b) Payments made to shareholders in the form of cash or stock dividends.c) All undistributed earnings.d) Financial resources currently available to satisfy financial obligations.
19. Which of the following statements relating to earnings per share is not true? __________ It is an often-reported measure of the potential return to stockholders. It is a financial measure. It is a cash measure. It is based on the accrual basis of accounting.
36 - In which financial statement are the incomes that cause an increase in equity and expenses that cause a decrease in equity? a) Balance B) Profit Distribution Table NS) Income statement D) Equity Changes Table TO) Cash Flow Statement
4When a company issues new shares of common stock, which of the following is the correct reporting on the statement of cash flows? A source of cash in the financing section A use of cash in the financing section A source of cash in the investing section A use of cash in the investing section
i) Central to the previous calculations of company valuations are the payment of dividends. The following terms relating to dividend payment chronology. Define each term in a single sentence • Ex-dividend date• Record date • Declaration date• Payment date • Cum-dividend period ii) Give two reasons why a company my distribute cash to shareholders via a buyback rather than a dividend