Investors prefer stock dividends over cash dividends if they are seeking short-term liquidity.
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What is stock dividend?</h3>
An additional share of firm stock is given to the holders of common stock through a stock dividend. According to each shareholder's ownership stake in the firm, these dividends are dispersed equally to each. The share of their ownership in the corporation is maintained by such distributions. The dividend given to holders of common stock from the company's profits is known as a common stock dividend. The payout comes in the form of cash or shares, just like regular dividends. Particularly when the payout is a cash distribution that is effectively a liquidation, the law may be able to control the common stock dividend's size. These financial dividends could be given with the intention of deceiving creditors.
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Answer:
a.Work in Process and Finished Goods
Explanation:
The summary of materials requisitions shows all request for raw materials used for production.
When raw materials are obtained, they go into the factory where production begins. Raw material is converted to finished goods which are then sold.
The inventory that represents raw materials received in the factory is Work in progress and finished goods.
So when transferring cost of materials it should be transfered to work in progress and finished goods, as these accurately represent the converted raw material recieved.
Answer:
D. A credit of $800
Explanation:
The accumulated depreciation is the total depreciation over the years of use of an asset. It usually has a credit balance.
Hence where Accumulated Depreciation has a balance of $600 in the Unadjusted Trial Balance column and an adjustment of $200 in the Adjustments Credit column, the total balance in the Adjusted Trial Balance column is the sum of the two credits
= $600 + $200
= $800 (credit)
Answer:
A- Financial leverage
Explanation:
The use of debt is called FINANCIAL LEVERAGE because it involve the use of debt or borrowed money rather than equity when an asset is purchased with the hope that the profit gain after deducting tax from the equity holder transaction will be higher than the borrowing cost.
Financial leverage is based on the used of borrowed money or debt to acquire an additional assets which will cause the returns on the owner's cash investment to be amplified.
The return on equity is increased through leverage leading to the excess amount of the financial leverage to increases the risk of failure, since it will becomes more difficult to repay back the debt or borrowed money.
Financial leverage is measured as the ratio of total debt to total assets meaning the greater the amount of debt , the greater the financial leverage.
