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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.

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Which one affect of cash is cash dividend or account payable or depreciation or write of?

Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.


What is the effect of issuance of stock dividend to paid in capital?

Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital


What is dividend theories and policies?

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.


What effect will the declaration and distribution of a stock dividend have on the net income and cash flows?

19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows


Is The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to?

The cumulative effect of declaring and paying a cash dividend on a company's financial statements is to reduce both retained earnings and cash on the balance sheet. When a dividend is declared, retained earnings are decreased, reflecting the distribution of profits to shareholders. Upon payment, cash decreases, impacting the company's liquidity. This transaction does not affect net income but signals a return of capital to shareholders.

Related Questions

Which one affect of cash is cash dividend or account payable or depreciation or write of?

Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.


What is the effect of issuance of stock dividend to paid in capital?

Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital


What is dividend theories and policies?

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.


What is the effect on shareholders wealth if the company didn't pay the dividend?

Non payment of dividend is to be differentiated from non declaration of dividend. Some companies, even though in profits, prefer to retain the profit in the business than disbursing dividends. This in facts maximises the shareholders wealth, due to the effect of compounding. Otherwise, if non payment of dividend is due to absence of sufficient profits, then the shareholders wealth diminishes.


The effect of a stock dividend is to?

To increase the book value per shear of common stock


What effect do large corporations have on communities socially and environmentally?

bad effects


What effect will the declaration and distribution of a stock dividend have on the net income and cash flows?

19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows


The effect of a stock dividend is to transfer what?

transfer additional shares of stock in the company to existing shareholders


Global corporations have constituted a strong force for global unity?

These is defined as Globalization. It addresses the infrastructure of global corporations, as well as the effect it has on economies worldwide.


What effect does the declaration and payment of a cash dividend have on total liabilities and debt to equity ratio?

A dividend becomes a liability only after it has been declared. The debt to equity ratio changed because your liabilities after the declaration went up.


Does Accounts Receivable have a negative effect on Net Cash?

Yes , I guess


What has the author Brian J Aitken written?

Brian J. Aitken has written: 'Wages and foreign ownership' -- subject(s): Corporations, Foreign, Effect of foreign investment on, Foreign Corporations, Wages