Asked by Denise Rangel on Jul 02, 2024
A dividend that represents a return of capital rather than a distribution of retained earnings is called a
A) property dividend
B) stock dividend
C) capital dividend
D) liquidating dividend
Liquidating Dividend
A type of dividend paid by a company to its shareholders from its capital base, effectively returning a portion of the original investment back to the shareholders.
Capital Dividend
A dividend paid to shareholders from a company's capital rather than its earnings, often tax-exempt for the receiver.
- Acquire knowledge about the influence of stock and cash dividends on financial reports in terms of theory and application.
- Understand the various kinds of dividends, including cash, stock, and property, along with their effects on financial statements.
Learning Objectives
- Acquire knowledge about the influence of stock and cash dividends on financial reports in terms of theory and application.
- Understand the various kinds of dividends, including cash, stock, and property, along with their effects on financial statements.