Cash dividends and stock splits decrease the Retained Earnings account. true or false?

Cash dividends and stock splits decrease the Retained Earnings account.

true or false?

Solutions

Expert Solution

ekkarill92 answered 5 months ago

Next > < Previous

Related Solutions

Problem 21.3A Recording cash dividends, stock dividends, and appropriation of retained earnings; preparing statement of retained...

Problem 21.3A Recording cash dividends, stock dividends, and appropriation of retained earnings; preparing statement of retained earnings. LO 21-5, 21-6, 21-8, 21-11 The stockholders' equity accounts of Jacob Corporation on January 1, 2019, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,500 Shares $ 150,000 Paid-in Capital in Excess of Par Value—Preferred 1,500 $ 151,500 Common Stock ($20 par value, 30,000 shares authorized) Issued and Outstanding, 20,000 Shares 400,000 Retained Earnings 395,500...

Explain how to account for stock dividends and splits. (10 marks)

Explain how to account for stock dividends and splits.

Corporations can execute stock transactions other than cash dividends, such as stock dividends and stock splits....

Corporations can execute stock transactions other than cash dividends, such as stock dividends and stock splits. First, briefly explain these two transactions in your own words. Second, offer an explanation as to why a corporation would want to issue a stock dividend or stock split? Third, search the internet and list a corporation you recognize that has issued either a stock dividend or a stock split in the past couple of years.

The cost of retained earnings True or False: It is free for a company to raise...

The cost of retained earnings True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. False True The cost of equity using the CAPM approach The current risk-free rate of return (rRFrRF) is 4.67% while the market risk premium is 6.17%. The Monroe Company has a beta of 1.56. Using the capital asset pricing model (CAPM) approach, Monroe’s cost...

Which of the following statements is false? Multiple Choice Both stock splits and stock dividends increase...

Which of the following statements is false? Multiple Choice Both stock splits and stock dividends increase the number of common shares issued. Both stock splits and stock dividends have the impact of reducing the market price of the stock. Stock splits reallocate amounts between retained earnings and contributed capital accounts. Both stock splits and stock dividends increase the number of common shares outstanding.

Closing entries reset the balance in retained earnings to zero. (True or False)

True or False? a) Calculation of retained earnings is one of the factors cited by our...

True or False? a) Calculation of retained earnings is one of the factors cited by our author for why NI and CF may be different. b) COGS appears on the asset side of the BS. C) ?EBIT can be found by subtracting SGA and Depreciation from the gross profit margin. D) ?Changes in interest expense do not affect a? firm’s cash position. E) The balance sheet identity indicates that total liabilities can be found by adding total assets to total...

What are stock dividends and stock splits? What are the advantages and disadvantages of stock dividends...

What are stock dividends and stock splits? What are the advantages and disadvantages of stock dividends and splits? When should a stock dividend as opposed to a stock split be used?

True or false Calculation of retained earnings is one of the factors cited by our author...

True or false Calculation of retained earnings is one of the factors cited by our author for why NI and CF may be different. COGS appears on the asset side of the BS. Changes in interest expense do not affect a firm’s cash position. the balance sheet identity indicates that total liabilities can be found by adding total assets to total equity. If there is no change in gross fixed assets from one year to the next, then net fixed...

Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander...

Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding $ 750,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 340,000 Total stockholders’ equity $ 1,140,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 3,000 shares of its own stock...

Subjects