Flashcards in Deck22 Deck (13):
What is the main source that Dividends are paid out of?
Owners Equity(OE) is reduced for all Dividends except:
For Property Dividends (Noncash), the assets are measured at what at the date of declaration?
What is a Scrip Dividend?
When a company declared a Dividend, but doesn't have the cash to pay for it.(They promise to pay the Dividend Later - in effect creating a Note Payable)
What type of Dividend is not payed from Retained Earnings?
Liquidating Dividend - they are paid from Contributed Capital
When Dividends are declared, RE is Debited (subtracted) at the date of (a) Declaration or (b)Payment
Dividends in Arrears are disclosed where?
If Paid in Capital goes below zero, then any amount remaining is:
Debited to Retained Earnings(RE)
Are stock dividends received treated as revenue?
Do stock dividends increase Current Liabilities when declared?
No - They do not decrease assets or increase debt
Large stock Dividends (>25%) are recorded at (a) market value or (b) par value
(b) Par Value
Do stocks or warrants have any effects on earnings?
No - a firm does not profit from transactions with owners.