Asked by alexis marie logan on May 10, 2024
Verified
Which of the following dividends are not considered current liabilities when declared?
A) property dividends
B) stock dividends
C) scrip dividends
D) cash dividends
Scrip Dividends
A form of dividend payment made by a company to its shareholders in the form of additional stock, instead of cash.
Property Dividends
Dividends paid to shareholders in the form of assets other than cash.
Stock Dividends
A dividend payment made to shareholders in the form of additional shares rather than cash payout, reflecting the company's desire to reinvest the dividend back into the business.
- Distinguish between types of dividends and their implications on current liabilities.
Verified Answer
OO
Omnyi OjekeMay 15, 2024
Final Answer :
B
Explanation :
Stock dividends are not considered current liabilities because they do not involve the payment of cash or other assets. Instead, they distribute additional shares of stock to shareholders, which does not impact the company's current liabilities.
Learning Objectives
- Distinguish between types of dividends and their implications on current liabilities.