Explain What a "Property Dividend" Is and Why It Is

question 3

Essay

Explain what a "property dividend" is and why it is not common.Under what circumstances would a property dividend be advisable?

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Definitions:

Permanent/Temporary

Refers to the classification of accounts or differences; permanent accounts are ongoing and not closed at the end of the accounting period, whereas temporary accounts are closed and reset.

Normal Balance

The side (debit or credit) of an account that is typically increased.

Financial Statement

A documented account of financial transactions and standing for businesses, individuals, or alternative entities.

Permanent/Temporary

Terms distinguishing between accounts that are not closed out or reset at the end of the accounting year (permanent accounts) and those that are (temporary accounts).