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stock dividends
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∙ 13y ago
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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.
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).
Is dividends part of stockholders equity?
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.
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.)
Does Stock dividends cause a reduction in retained earnings but they never reduce total shareholders' equity?
yes
Would buying back stock reduce stockholders equity?
Yes buying back shares from investors is reduction of stockholders equity in business and normally it is done when excel capital is available as well as to gain more control of business.
Profits paid to stockholders are called what?
Profits paid to stockholders are called dividends.
Does payment of dividends reduce stockholders equity?
Answer:Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not pay out as a dividend (hence: "retained"). Retained earnings therefore increases with earnings, but decreases with dividends, since dividend is a distribution of earnings to the shareholders.
