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A coorporation gives out its profits as dividends paid to whom?
stockholders
How are corporate profits taxed?
Earnings are taxed first as corporate profits, then as personal income after dividends are paid.
What is the double entry for dividends paid?
DR Retained Profits (in BS) CR Cash/Bank (in BS)
Are dividends the same as profits?
No because a shareholder is someone who owns or holds a share of stock and has the right to participate in the profits through dividends
Is dividend ordinary income?
Most dividends are. However, long term capital gains distributions from a mutual fund are capital gains. Liquidating dividends and return-of-capital dividends can be capital gains. And, to make matters more confusing, some dividends, knows as "qualifying dividends," are taxed at long term capital gains rates even though they are not capital gains.
Dividends are paid from?
Dividends are paid from corporate profits.
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.
A corporation gives out its profits as dividends paid to its?
Stockholders
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.
A coorporation gives out its profits as dividends paid to whom?
stockholders
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.
What is the portion of corporate profits paid out to stockholders called?
The portion corporate profits paid out of stockholders is A dividend is quarterly payment to stockholders of record, as a return on investment. Dividends may be in cash, stock, or property, and are declared from operating surplus. If there is no surplus, the payment is considered a return on capital. Dividend payments are, in effect, taxed twice-once when corporate profits are taxed and again when the dividend is received by a taxpaying stockholder. The corporate profits paid out to stockholders is called dividends.
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.
