All dividends, except for stock dividends, reduce the total stockholders’ equity in the corporation. Why is that?...

50.1K

Verified Solution

Question

Accounting

All dividends, except for stock dividends, reduce thetotal stockholders’ equity in the corporation. Why isthat? Explain. 1-2 sentences max

Answer & Explanation Solved by verified expert

3.7 Ratings (521 Votes)

AnswerIts true that all dividends except Stock dividends reduce stockholders equity because in case of Stock dividends there is no cash outflow and the amount of decrease in retained earnings is same as See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!

Become a Member

All dividends, except for stock dividends, reduce the total stockholders’ equity in the corporation. Why is that?...

50.1K

Verified Solution

Question

Accounting

All dividends, except for stock dividends, reduce thetotal stockholders’ equity in the corporation. Why isthat? Explain. 1-2 sentences max

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

Find Mean, median, varianca and standard deviation for: 6, 10, 18, 25, 13, 16, 11, 7, 11.

8 The breakdown of food occurs in what 3 stages A Digestion glycolysis oxidative phosphorylation...

Question 5 Points 3 Which of the following happens when an ionic bond is formed...

Extra credit an allergen is antigen taken into the antigen presenting cell inside a vesicle...

Find a polynomial of least possible degree having the graph shown 0 1 10 E...

dy/dx=2y (2x4 + 3 cos x - 2)a. Find the general solution.b. Find the particular...

Sweeten Company had no jobs in progress at the beginning of the year and no...

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of...

02/03/2024Purchased office supplies for $220 with a VISA credit card from Bichotte Supplies. Use the...

Problem 1 (50 points) All Financial Data should only be obtained from the website https://finance.yahoo.com...

Tom and Suri decide to take a worldwide cruise. To do so, they need to...

Oriole Company is a multiproduct firm. Presented below is information concerning one of its products,...