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

question 125

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.

Understand how noncash investing and financing activities are reported.

Interpret the impact of transactions on cash flows and the financial position of a company.

Recognize how the direct and indirect methods for cash flows from operating activities are applied.

Identify the role of spreadsheets in preparing financial statements.

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Definitions:

Intrapreneurship

The practice of applying entrepreneurial skills and approaches within an existing organization to drive innovation and strategic growth.

Planning

The process of making plans for something, including setting goals, defining steps, and allocating resources.

Action

The process or act of doing something towards achieving a goal or resolving a problem.

Entrepreneurship

Engaging in the creation of a business or multiple businesses, undertaking economic risks in anticipation of making a profit.