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Impact of Dividend Distribution on Retained Earnings

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What type of dividend involves the issue of company shares to shareholders?

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1. What type of dividend involves a promissory note to pay dividends at a future date?

2. Retained earnings decrease when any type of dividend is declared and company cash is used to pay _____ dividends.

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About This Quiz & Worksheet

The worksheet and quiz help gauge your knowledge of the impact of dividend distribution on retained earnings. You will be assessed on some topics like the different types of dividends that involves a promissory note.

Quiz & Worksheet Goals

In these materials, you can check your knowledge of:

  • Property dividends
  • Calculating the amount of the entry required to the additional paid-in capital account for a liquidating dividend
  • Type of dividend that involves the issue of company shares to shareholders
  • A dividend that involves a promissory note to pay dividends at a future date

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about the different types of dividends
  • Information recall - access the knowledge you have gained about characteristics of property dividends
  • Reading comprehension - ensure that you draw the most important information from the lesson on dividend distribution and retained earnings

Additional Learning

The lesson called Impact of Dividend Distribution on Retained Earnings is a helpful tool to use when you want to discover more about these business topics. Objectives you can cover are:

  • Define dividend
  • Compare and contrast the different types of dividends
  • Determine what is involved in liquidating dividends
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