Which of the Following Statements About Property Dividends Is Not

question 150

Multiple Choice

Which of the following statements about property dividends is not true?

• A) A property dividend is usually in the form of securities of other companies.
• B) A property dividend is also called a dividend in kind.
• C) The accounting for a property dividend should be based on the carrying value (book value) of the nonmonetary assets transferred.
• D) All of these statements are true.

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Definitions:

Lease Contract

A legal agreement in which one party rents property, services, or goods from another party for a specified period of time.

Commercial Impracticability

A legal doctrine that excuses a party from performing a contract when events have occurred making performance excessively difficult, expensive, or harmful.

Frustration of Purpose

A legal doctrine that allows parties to be relieved from their contractual obligations if an unforeseen event undermines the contract's original purpose.

Substantial Performance

Contract performance that occurs when nearly all the terms of the agreement have been met, there has been an honest effort to complete all the terms, and there has been no willful departure from the terms of the agreement.