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What is a cash payment from a corporation's profit?
dividend.
What is a capital dividend?
A capital dividend is a special dividend paid to shareholders of a corporation out of capital gains income produced from the sale of property.
Who is guaranteed a dividend in a corporation?
preferred stock holder...
Who can declare a dividend for a corporation?
The board of directors only.
When does a corporation record a dividend related liability?
on a declaration date
When a corporation receives a dividend from another corporation how is it taxed?
Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.
What is the effect of a stock dividend on a corporation's stockholders'equity accounts?
The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.
What does the size of the dividend per share of stock depend on?
the corporation's profits
What is dividend signaling theory?
This refers to the idea that the price of a dividend (a corporate payment made by a corporation to its shareholders) signals positive future performance of the company.
What are the economic and accounting effects of dividend transactions in a corporation?
I think it means any transaction.
What kind of account is dividends?
Dividend is temporary liability account as soon as dividend is declared by corporation which ultimately closes to net profit or retained earnings account.
Does dividend reduce profits?
When a corporation declares and pays a dividend, the dividend does not reduce the current accounting period's profit reported on the income statement. In other words, a dividend is not an expense.Dividends will reduce the amount of the corporation's retained earnings. Retained earnings are reported in the stockholders' equity section of the balance sheet.If a corporation has very profitable uses for its cash, its future profits might be less if it pays dividends instead of reinvesting the cash dividend amounts into profitable projects.
