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  3. all dividends, except for stock dividends, reduce

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

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Accounting

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

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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
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