Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.
If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
Dividend Disbursement
A declared cash dividend is recorded by debiting the dividend account and crediting the dividend payable account.
[Debit] Proposed dividend [Credit] Dividend payable
this policy is that policy which is fluctuating in nature and the shareholders do not generally go for this dividend policy.
what are the difference between relevance and irrelevance theories of dividends
The advantages of dividend policies are that they provide an outline of what the investor can expect from the company regardless of what the policy is. Stable dividends are typically preferred over fluctuating dividends. The main disadvantage of dividend policies is that is they are too generous, the company may struggle and if they attempt to reduce the dividend then investor's can become disenchanted as it is considered a cut in pay.
final dividend is paid after close of financial year.interim dividends are paid during financial year depending upon company financial health & policies.
through the theories of eugenics.
The Great Depression
The dividend is 97.The dividend is 97.The dividend is 97.The dividend is 97.
It depends on company policies, if company has good investing opportunities available they may not pay even any dividend or portion of dividend and if they don't have investing opportunities they can distribute full amount of net income to share holders.
THe answer is dividend. THe answer is dividend.
If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
Dividend Disbursement