Question

QS 11-8 Accounting for dividends LO P2 Which of the following statements are true regarding dividends?...

QS 11-8 Accounting for dividends LO P2

Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

  • A stock dividend commonly indicates management's confidence that the company is doing well.unanswered
  • A stock dividend increases the number of outstanding shares.unanswered
  • Cash dividends are usually a mechanism to keep the market price of stock affordable.unanswered
  • The payment date reflects the date a cash dividend is paid to stockholders.unanswered

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Answer #1
The following statements are true regarding dividends:
A stock dividend commonly indicates management's confidence that the company is doing well.
A stock dividend increases the number of outstanding shares.
The payment date reflects the date a cash dividend is paid to stockholders.
Cash dividends are usually a mechanism to keep the market price of stock affordable is not true. Stock dividends are a means to keep the market price of stock affordable.
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