A Share Dividend

question 6

Multiple Choice

A share dividend:

• A) is a type of distribution.
• B) makes no difference in the assets of the corporation or in the shareholder's relative interest in the net worth of the corporation.
• C) is also known as a property dividend.
• D) All of these.

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Definitions:

Accounts Payable

The liabilities a company has to its vendors or lending parties for products and services it has received but for which payment has not been made.

Net Method

A way of recording purchases or sales of goods that directly factors in any discounts or allowances at the time of the transaction.

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts offered.

Cash Discounts

A reduction in the amount owed by a customer if payment is made within a specified time frame.