If a Corporation Declares a Dividend Based Upon Paid-In Capital

question 142

Multiple Choice

If a corporation declares a dividend based upon paid-in capital it is known as a

• A) scrip dividend.
• B) property dividend.
• C) paid dividend.
• D) liquidating dividend.

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Definitions:

Debit Memo

A document issued by a buyer to a seller indicating the amount deducted from the money owed to the seller.

Check Fee Expense

Charges incurred by a business or individual for issuing or cashing checks, often recognized as an expense.

Bank Service Charges

Fees charged by banks for account maintenance, transactions, or other financial services.

Note Collected

The receipt of cash from the repayment of a promissory note where the borrower repays the lender.