0
1. Dividend is that amount of profit which is distributed to sharesholders of company so it is part of profit and as profit is included in equity same way dividend is also included in equity.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?
They do not.
Can you pay dividends from contributed capital?
Dividends are deducted of the retained earnings which is part of the contributed capital and that must be done according to the dividends policy The dividend policy of a firm relates to management's propensity to distribute earnings to stockholders.
Does expenses increase stockholders' equity?
no
A coorporation gives out its profits as dividends paid to whom?
stockholders
A corporation gives out some of its profits in dividends to whom?
stockholders
Dividends is what type of account?
Dividends are classified as stockholders' equity. They reduce stockholders' equity so they can also be called a contra equity account.
Which dividends do not reduce stockholders' equity?
stock dividends
How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?
They do not.
How do you compute a Return on common stockholders equity?
(Net Income - Preferred Stock Dividends) / Average common stockholders' equity
What items affect stockholders equity?
Stockholders Equity is increase by profits and the issuance of new stock. Stockholders Equity is reduced by losses, the payment of dividends and the purchase of Treasury Stock (the company's re-purchase of its own stock).
A corporation gives out its profits as dividends paid to its?
Stockholders
Do Revenues represent decreases in stockholders' equity?
no, they represent increases in stockholders' equity.
Expanded accounting equation?
Assets =Liabilities +(Stockholders' Equity=Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. )Assets =Liabilities +(Owner's Equity=Owner's Capital + Revenues - Expenses - Owner's Draws.)
Profits paid to stockholders are called what?
Profits paid to stockholders are called dividends.
What is a share of profits distributed to stockholders?
dividends
Profits of a corporation that is distributed to its stockholders?
dividends
What is a distribution of earnings to the stockholders of a corporation?
Dividends
