When a company decides to pay a dividend, explain what makes the payment a dividend as opposed to any other type of payment? From which account must this payment be made? Why?

Q: "If management wishes to capitalize part of the earnings, it may issue a" share dividend.…

A: Dividend are the share or part of profits that is being distributed or divided to the shareholders…

Q: What are the different types of dividends, and how is a dividend paid?

A: A portion of profits payable to the shareholders by the company on a regular period is termed as…

Q: Which one of the following is a payment of either cash or shares of stock that is paid out of…

A: Retained earnings are the part of the profit left over after payment of all the direct and indirect…

Q: credit to Investment in Peas Company.

A: Under equity method, the journal entry for receipt of cash dividend is Cash  A/c  Dr  xxxx    To…

Q: When an investor uses the equity method to account for investments in common stock, the investor’s…

A: Identify the appropriate answer for the given statement from the given choices. When an investor…

Q: under what circumstances might a company choose not to pay dividends?

A: Dividend Payment and non-payment will be decided by the company based on the future opportunity of…

Q: How does AF classify interest paid, interest received, and dividends received in itsstatement of…

A:

Q: Which is not a liability account?

A: Liability is either cash or assets payable to third party based on certain obligation of company.…

Q: What’s the effect of Declaration of a cash dividend on the cash flow statement

A: Cash dividend refers to the net amount of dividend that a company pays to its shareholders in the…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition:   Equity method: Equity method is the method used for accounting equity investments…

Q: What type of account is the Dividends account?

A: Solution Concept Dividend                 Dividend is the amount which is distributed out of the…

Q: Describe the procedures a company followswhen it makes a distribution through dividendpayments.

A: Answer: The company follows the following procedures through the dividend payments while making…

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

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

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: Write a note on dividend. To who is dividend is paid?

A: Dividends are paid to the shareholders of the company.

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: Which of the following is a cost associated with an IPO? Interest expenses Out-of-pocket expenses…

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

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 of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: Typically, how often are dividends paid?

A: Dividends are paid to shareholders out of the net profit earned by the company and if required from…

Q: Describe how to Receiving Dividends.

A: Dividends are paid to the shareholders of the company on the basis of profits earned by the company.…

Q: What is the company's dividend policy

A: Dividend is some portion of company’s profit that the shareholders get for investing their money in…

Q: When would a company be able to declare a cash dividend?

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

Q: Which of the following will result when a dividend is paid? A debit to dividends payable. A credit…

A: Concept used : When dividend is paid then journal entry will be to debit the dividend payable and…

Q: Dividend payments to shareholders are classified as A. Cash outflow for financing activities B.…

A: Cash flow statement (CFS) is the one which is used to report the cash flows of the entity.

Q: Why does the equity method record dividends from an investee as a reduction in the investment…

A: The carrying amount or the book value of the investment is reduced in order to record the dividend…

Q: From the firm’s perspective, how are dividends different from interest payments?

A: Even though interest and dividend are two distinct ideas, both are critical components of a…

Q: FINANCING ACTIVITIES How much is cash paid for dividends?

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

Q: Topic: Payout Policy What is the advantage(s) of dividends against retained earnings?

A: Dividend is the share which is given to the shareholders when from the company's profit. Dividend…

Q: How does the accounting for a dividend received differ between the cost method and the equity…

A: Equity investment: Equity investments are stock instruments which claim ownership in the investee…

Q: Some people think that a company’s retained earnings rep-resent cash reserved for the payment of…

A: Retained earnings: It can be defined as the amount of residual profits that is left with a business…

Q: When does a company declare a cash dividend

A: A dividend is a share of profits and retained earnings that a company pays out to its shareholders.…

Q: What exactly is a payout, and what is the distinction between cash and dividend payments

A: A client is defined as a person, corporation, or institution who owns at least one share of a firm's…

Q: TRUE OR FALSE? The total retained earnings can be declared as dividends.

A: Retained earnings: Retained earnings are those profits that the company has been accumulated over…

Q: Does net income represent a supply of cash that could be dis-tributed to stockholders in the form of…

A: Net income: It can be defined as the income earned by a business after deducting all the expenses…

Q: Explain the procedures used to actually pay the dividend.

A: Step 1   A dividend is the distribution of the dividend or residual profits to the shareholders on a…

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

Q: In the application of the equity method, how should dividends from the investee be accounted for?…

A: Equity method: Equity method is the accounting method used for accounting equity investments which…

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: Why the dividend does exceeds the balance in retained earnings, the excess referred to as a…

A:

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: Is a company's dividend policy important? Please explain why or why not

A: Dividend policy is concerned with financial policies that involve paying a cash payout now or paying…

Q: Describe the role of ex-dividend date in the payment of cash dividend.

A: ex-dividend  date is usually one day before record date. Before ex-dividend date share price include…