Study Questions for Chapter 13 - Part 2

Study Questions for Chapter 13 - Part 2 - takes place? 3....

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Study Questions, Chapter 13 – Part 2 1. Describe the nature of cash dividends. What are they? Who are the parties involved and how does this transaction affect the parties involved? “When can” and “why do” companies decide to pay them? What are the three important dividend dates and what happens on each date. How are assets, liabilities, and stockholder’s equity affected when dividends are o Declared o Paid 2. What is a stock dividend? What happens to the company and to the stockholders when a stock dividend is declared and issued? What is the effect on total Assets, Liabilities, and Stockholder’s Equity when this transaction
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Unformatted text preview: takes place? 3. What is treasury stock? Describe what happens when a company acquires treasury stock, who are the parties and what are they doing, and why? What is the effect on A, L, and SE when this transaction takes place? What is the affect on total A, L, and SE when a company sells treasury stock, and for how much? How is treasury stock reported? 4. What is retained earnings? Describe the Statement of Retained Earnings. What does it report on? How is it dated, and why is it dated that way? Why is reporting retained earnings important to investors?...
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This note was uploaded on 02/11/2012 for the course BUSINESS 130 taught by Professor Mccormack during the Fall '10 term at Berea.

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