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A corporation gives out its profits as dividends paid to its?
Dieqo0
Stockholders
Wiki User
∙ 7y ago
Wiki User
∙ 12y agoA corporation gives out its profits as dividends paid to its stockholders
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A coorporation gives out its profits as dividends paid to whom?
stockholders
Dividends are paid from?
Dividends are paid from corporate profits.
Profits paid to stockholders are called what?
Profits paid to stockholders are called dividends.
What is a feature of a sole proprietorship?
profits paid out as dividends
What is the relevance of dividend cover if dividends are paid out of distributable profits?
Because dividend cover represents the amount of times by which dividends can be paid by profits. i.e. the company's ability to pay it's dividends. The higher the dividend cover the greater the ability of the company to pay dividends out of it's distributable profits. Dividends according to companies act legislation can only be paid out of distributable profits hence the relevance of dividend cover represents the companies ability to pay their dividends.
The part of the profits that are paid to shareholders is called?
They are called dividends.
How are corporate profits taxed?
Earnings are taxed first as corporate profits, then as personal income after dividends are paid.
How are Dividends are paid out of profits?
Yes. companies pay out dividends to its share holders from the profit they make out of their business. The more the profit the company makes the greater would be the dividends paid out to the shareholders.
Are dividends paid out of the current year's profits or from retained earnings?
From retained earnings.
Why do dividend decisions based on an overstated profit lead to erosion of capital?
By definition, dividends are paid out of profits, they can not be paid out of anything else (not loans, not losses, etc). If the dividends paid exceed profits for the same period the distribution is considered a return of capital (stock basis, additional paid in captial, etc). So an overstated profit WILL reulst in "erosion of capital" if correction of the overstatement results in profits being less than dividends.
The company profits paid out to shareholders are called?
Those distributed profits are called dividends, because the profit is divided among the various shareholders.
What is the double entry for dividends paid?
DR Retained Profits (in BS) CR Cash/Bank (in BS)
