When the Date of Declaration and the Payment Date Occur

question 3

True/False

When the date of declaration and the payment date occur in the same period,the amount of dividends shown on the statement of stockholders' equity and on the statement of cash flows will be equal.

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Definitions:

Stock Dividend

A type of dividend payment made in the form of additional shares of stock rather than cash, often used by companies to conserve cash.

Par Value

The nominal or face value of a bond, stock, or other financial instrument, representing the amount to be repaid at maturity.

Market Price

Market price is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares, rather than cash.