DIVIDENDS Flashcards
Preference share capital that participates in the excess dividends after paying both preference and ordinary shares their regular dividends
Participating Preference Share Capital
Amount earned by shareholders during a given period for each ordinary share held
Earning per Share
A cumulative preference share capital is entitled to payment of dividends in arrears
TRUE
Unpaid dividends of prior years
Dividends in Arrears
Also known as legal capital
Share Capital
Earnings per share is computed for both preference and ordinary shares
FALSE
Donated Capital is reported as part of
Additional Paid-in Capital
Dividends in arrears on preference shares are reported in the financial statements as a
Footnote to Financial Statements
The amount recorded as reduction in Retained Earnings on a property dividend declaration
Carrying Value
The peso equity in corporate capital for each share capital owned by a shareholder is known as
Book Value per share
Capital arising from profitable operations of the corporation
Retained Earnings
Dividends distributable in the form of non-cash assets
Property Dividends
A share capital dividend decreases retained earnings but it increases contributed capital
TRUE
When the outstanding preference share capital is multiplied by the participation rate, the result is
Maximum allowed participation
The type of dividend that does not affect total assets and total shareholders’ equity
Stock Dividend
Capital arising from investment by shareholders
Contributed Capital
A share capital dividend representing less than 20% of the outstanding stock if the corporation
Small Share Capital Dividend
The account used for the declared but not yet distributed stock dividend
Stock Dividend Distributable
When a corporation declares a cash dividend, the entry include a
debit to Retained Earnings
An appropriation of retained earnings reduces the total amount of retained earnings
FALSE
Corporate earnings distributed to shareholders in the form of cash, non-cash assets, or the corporation’s own shares
Dividends
The excess of fair value over the par value of share capital in a small stock dividend
Paid-in Capital from Stock Dividend
Retained Earnings available for distribution as dividends to shareholders
Unappropriated Retained Earnings
a deferred cash dividend
Scrip Dividends
The type of Dividend that does not affect total assets and total shareholders’ equity is
Share Capital Dividend
Contributions by shareholders in excess of the par or stated value of the share capital
Share Premium
A debit balance in the Retained Earnings account
Deficit
Retained earnings set aside for a specific purposes
Appropriated Retained Earnings
Dividends representing return of shareholders’ investment
Liquidating Dividend
The normal balance of Retained Earnings is credit. Therefore, it can never have a debit balance
FALSE
