Which of the following is true of dividend payments? A company cannot, in any case, distribute...
Which of the following is true of dividend payments?
- A company cannot, in any case, distribute assets in the form of cash or properly from capital surplus.
- Directors have the discretion to declare and distribute dividends in excess of those allowed by the articles of incorporation without being liable to the corporation.
- Dividends have to be paid to shareholders even if paying them makes the company insolvent.
- A company can revoke a share dividend as long as the shares have not been issued.
- A treasurer is bound to hand out cash to the shareholders if the board of directors declares a dividend payable on the date of the board meeting.
Homework Answers
| A company can revoke a share dividend as long as the shares have not been issued. |
| A company cannot revoke a cash dividend without shareholders consent, however a company can revoke a share dividend as long as the shares have not been issued. |
| A company can distribute assets in the form of cash or property from capital surplus if articles of incorporation provide. |
| Option D is correct |
Add Answer to:
Which of the following is true of dividend payments?
A company cannot, in any case, distribute...
18,19,20 18) Adam, Terry and Victor want to form ATV Corporation. Which of the following is not a step in forming the corporation? 15. (a) selecting a state of incorporation (b) preparing articles...
18,19,20
18) Adam, Terry and Victor want to form ATV Corporation. Which of the following is not a step in forming the corporation? 15. (a) selecting a state of incorporation (b) preparing articles of incorporation (c) adopting bylaws at a shareholders' meeting (d) filing articles of incorporation (e) none of the above 16 17 19) Tim and Myra started a general partnership called "Purrrfect Pets". Tim and Myra each have personal assets exceeding $200,000 in value; however, Tim only invested...
Which of the following occurs at the date of record? O The company accrues the dividend...
Which of the following occurs at the date of record? O The company accrues the dividend to be paid. The board of directors declares the dividend. The company pays the dividend, O A list of shareholders entitled to receive the dividend is prepared. O None of the choices occurs at the date of record. MacBook Air
journal Cash dividends involve three events. On the date of declaration, the directors bind the company...
journal
Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record, recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the...
QS 13-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists...
QS 13-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 88,000 shares of $5 par value, 10% cumulative preferred stock and 320,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $165,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders...
QS 11-10 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists...
QS 11-10 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 84,000 shares of $5 par value, 10% cumulative preferred stock and 300,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $145,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders...
Identify which of the following statements are true for the corporate form of organization.
QS 11-1 Characteristics of corporations LO C Identify which of the following statements are true for the corporate form of organization. Shareholders are not personally liable for corporate acts. The sale of shares from one stockholder to another does not Impact operations. An exception is when it changes the makeup of directors. DIt has many of the same nights as an individual it does not end with the death of an owner. Corporations are often subject to fewer regulations than partnerships. Stockholders are expected to hire...
QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists...
QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative preferred stock and 290,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders...
MCQ 1)All of the following must occur before a cash dividend can be paid except the...
MCQ 1)All of the following must occur before a cash dividend can be paid except the net realizable value of the company’s assets must exceed the total of its liabilities and share capital. the board of directors must approve the dividend. the company must have profit in the current year. the company must have sufficient cash or resources to be able to pay its liabilities. 2)The payout ratio is calculated by dividing total cash dividends paid by net income. dividends...
1Common shareholders have all of the following rights except the right to: a. vote for the...
1Common shareholders have all of the following rights except the right to: a. vote for the board of directors. b. vote on company plans and investments. c. share corporate profit through receipt of dividends. d. share in assets upon liquidation in proportion to their holdings. 2Disadvantages of a corporation compared to a proprietorship or partnership do not include: a. potential for additional tax. b. separate legal existence. c. increased cost and complexity. d. ownership separated from management. 3A company's authorized...
Please complete the following definitions 2 – a) Which is more critical to the dividend decision,...
Please complete the following definitions 2 – a) Which is more critical to the dividend decision, earnings or cash flow? Explain. b) Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend of 50 cents per share will be payable to the holders of record at the close of business on November 15th 2019. What date is the declaration date, the holder of record date, the ex-dividend date, and the...
18,19,20
18) Adam, Terry and Victor want to form ATV Corporation. Which of the following is not a step in forming the corporation? 15. (a) selecting a state of incorporation (b) preparing articles of incorporation (c) adopting bylaws at a shareholders' meeting (d) filing articles of incorporation (e) none of the above 16 17 19) Tim and Myra started a general partnership called "Purrrfect Pets". Tim and Myra each have personal assets exceeding $200,000 in value; however, Tim only invested...
Which of the following occurs at the date of record? O The company accrues the dividend to be paid. The board of directors declares the dividend. The company pays the dividend, O A list of shareholders entitled to receive the dividend is prepared. O None of the choices occurs at the date of record. MacBook Air
journal
Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record, recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the...
QS 13-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 88,000 shares of $5 par value, 10% cumulative preferred stock and 320,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $165,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders...
QS 11-10 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 84,000 shares of $5 par value, 10% cumulative preferred stock and 300,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $145,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders...
QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative preferred stock and 290,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders...
Most questions answered within 3 hours.
-
1. What is the meaning of the term communication style?
2. What are the benefits to...
asked 15 minutes ago -
9.) You are buying a car that cost $26,500. You make payments of
$412 each month...
asked 40 minutes ago -
. Suppose a discrete random variable has probability
distribution
P(x) = .2 if x = 0...
asked 1 hour ago -
Problem #1
The area between Z = 0 and Z = 2.50
The area between Z...
asked 56 minutes ago -
Under the influence of its drive force, a snowmobile is moving
at a constant velocity along...
asked 2 hours ago -
Why do organizations decline? What steps can top
management take to halt, decline, and restore organizational...
asked 2 hours ago -
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 3 hours ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 4 hours ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 6 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 6 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 8 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 8 hours ago