Which of the Following Statements About Property Dividends Is FALSE

question 122

Multiple Choice

Which of the following statements about property dividends is FALSE?

• A)A property dividend is a nonreciprocal transfer of nonmonetary assets.
• 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)The accounting for a property dividend should be based on the fair value of the
• Nonmonetary assets transferred.

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Definitions:

Support Departments

Units within an organization that provide services or support to the operational departments, but do not directly contribute to the production of goods or services.

Cafeteria Department Costs

The expenses associated with operating a cafeteria within an organization, including food supplies, labor, and equipment.

Reciprocal Services Method

An approach used in cost accounting to allocate costs between departments that provide services to each other.

Support Department Costs

Expenses related to departments that do not directly generate revenue but provide essential services to revenue-generating departments.