What is the effect of a cash dividend on the corporation


1. For what reason do corporations retain earnings in the business?

2. What are the three dates involved in the declaration and payment of dividends? What is the meaning of each date?

3. What is the effect of a cash dividend on the corporation accounts?

4. Give three reasons why a corporation may distribute a stock dividend.

5. Where should stock dividends distributable be reported on the balance sheet? Why?

6. What is the primary reason for appropriating retained earnings?

7. How are appropriated and unappropriated retained earnings shown on the statement of retained earnings?

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Accounting Basics: What is the effect of a cash dividend on the corporation
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