Question

Under what circumstance should dividends be recognized? a. On a cash basis b. On an accrual...

Under what circumstance should dividends be recognized?

a. On a cash basis

b. On an accrual basis

c. When shareholders have legal rights to receive payments

d. On an actual basis where dividends are declared

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct answer is c. When shareholders have legal rights to receive payments

Dividends should be recognized when shareholders have legal rights to receive payments.

Dividends are the portion of earnings of a company which is distributed to the shareholders. Dividends are usually approved by the shareholders and declared by the board of directors. Dividends are paid only to the shareholder who owns the share. Dividends should be recognized when right to receive dividends by shareholders has been established.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Under accrual-basis accounting cash must be received before revenue is recognized. events that change a company’s...
Under accrual-basis accounting cash must be received before revenue is recognized. events that change a company’s financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. net income is calculated by matching cash outflows against cash inflows. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.
What are the advantages in adopting IPSAS either under accrual or cash basis.
What are the advantages in adopting IPSAS either under accrual or cash basis.
What are the Challenges in adopting IPSAS either under accrual or cash basis.
What are the Challenges in adopting IPSAS either under accrual or cash basis.
Under the accrual basis of accounting, which of the following statements is true? I. Reported net...
Under the accrual basis of accounting, which of the following statements is true? I. Reported net income provides a measure of operating performance II. Revenue is recognized when cash is received, and expenses are recognized when payment is made III. Cash inflows are recognized when they are received, and cash outflows are recognized when they are made I only III only I amd III I, II, and III
What would be some of the recommendation in adopting IPSAS either under accrual or cash basis.
What would be some of the recommendation in adopting IPSAS either under accrual or cash basis.
5.) What is the amount of revenue recognized in October on an accrual basis? A.) $9,400...
5.) What is the amount of revenue recognized in October on an accrual basis? A.) $9,400 B.) $1,900 C.) $1,500 D.) $4,400 The following transactions occurred in October: Received $3,000 cash contribution from the owner of the business on October 4 Received $700 cash for services provided to a customer on October 7 Received $1,700 from a customer on October 14, in payment of his account receivable which arose from sales in August Borrowed $2,000 from the bank by signing...
Compared to the accrual basis of accounting, the cash basis of accounting understates income during the...
Compared to the accrual basis of accounting, the cash basis of accounting understates income during the accounting period by the net increase of the           Accounts receivable      Accrued expenses payable           A.   Yes                       Yes           B.   Yes                       No             C.   No                        Yes           D.   No                        No           E.   Yes                       Yes
1.Explain the circumstances in which a corporation can use the accrual basis or the cash basis...
1.Explain the circumstances in which a corporation can use the accrual basis or the cash basis of accounting. 2.When must a corporate tax return be filed? Can a corporation receive an extension of time to file a return, and if so, what is the length of the extension? 3.An individual contributes property with a fair market value in excess of basis to a corporation un exchange for stock. What is the basis of the stock in the hands of the...
When a new partnership is formed and Goodwill is recognized what should follow: a. Nothing b....
When a new partnership is formed and Goodwill is recognized what should follow: a. Nothing b. Distribution of cash c. Increase all partners accounts d. Re-evaluation of assets and liabilities
3. A physician’s group keeps their financial records under the cash basis of accounting. When does...
3. A physician’s group keeps their financial records under the cash basis of accounting. When does the physician group record the expense for painting their office? a. when they receive the bill b. when the painting was done c. when the bill is paid d. when management decides that the office needs to be painted
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT