Which of the following statements are true regarding dividends 1 Cash and stock dividends reduce retained earnings 2 Dividends payable is recorded at the time a cash dividend is declared 3 The date of record refers to the date a cash dividend is paid to stockholders 4 Stock dividends are a mechanis...

True statements 1 Cash and stock dividends r ...

Which of the following statements are true regarding dividends? _____ 1. Cash and stock dividends reduce retained

Question:

Which of the following statements are true regarding dividends?
_____ 1. Cash and stock dividends reduce retained earnings.
_____ 2. Dividends payable is recorded at the time a cash is declared.
_____ 3. The date of record refers to the date a cash is paid to stockholders.
_____ 4. Stock dividends are a mechanism to keep the market price of stock affordable.
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...