When a company receives cash from issuing common stock it debits?
when a company receives cash from issuing common stock, it debits cash. if it issues no-par value stock, the corporation credits the equity account entitled common stock. if the company issues par value stock rather than no-par value stock, we credit two equity accounts: common stock and additional paid-in capital.
What is the difference between common stock and preferred stock?
2. has priority over common stock at liquidation. Preferred stock is "preferred" over common stock by providing preferred stock holders with these rights: first right to specified amount of dividends, and preference in distribution of assets during dissolution of corporation.
Which of the following is required for a cash dividend to occur?
For a cash dividend to occur, a corporation must have all of the following except retained earnings. adequate cash. a declaration of dividends. net income. net income. Each of the following decreases retained earnings except a cash dividend. stock split. stock dividend. all of these answer choices are correct. stock split.
What happens to preferred stock when a company is forced to liquidate?
If a company is forced to liquidate, preferred stockholders have first claim to its remaining assets compared to other equity holders. The price for these enhanced privileges is that preferred stocks generally come without voting rights and have no real share in the company's profits
When computing earnings per share, are dividends deducted from net income?
When computing earnings per share, the dividends for cumulative preferred stock are deducted from net income only if the preferred dividends have been declared. the dividends for cumulative preferred stock are deducted from net income whether or not preferred dividends have been declared.
What is stock split?
stock splits. In the stockholders' equity section of the balance sheet, common stock dividends distributable will be classified as part of Additional paid-in capital. dividends in arrears will appear as a restriction of retained earnings.
What is Treasury stock?
Treasury stock consists of issued shares that have been repurchased by the corporation. Repurchased shares are no longer "outstanding," so the definition of Treasury Stock is issued shares minus outstanding shares
What is a POA in a company?
This is called a "proxy", where the individual granted the POA acts as the shareholders proxy.
Answer
D) less preferred dividends by weighted average of common shares outstanding.
New questions in Business
Karen makes custom jewelry. In order to sell her jewelry, Karen rents a small kiosk at the local mall for $50 per month. She must buy blank medallions …