1 Net Income increases stockholder 's equity by increasing the Common Stock Account True False 2 The management of a company has the right to declare a dividend when the Board of Directors has refused to declare one and it is clear that there are funds to cover the dividend True False ...

1 The correct option is True The net income during the year from the income statemen ...

1. Net Income increases stockholder's equity by increasing the Common Stock Account True False 2. The management...

Question:

1. Net Income increases stockholder's equity by increasing the Account
True False
2. The management of a company has the right to declare a when the Board of Directors has refused to declare one and it is clear that there are funds to cover the Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...