What Are Dividends? Dividends are a share in a company’s profits paid to shareholders. These payments may come directly from its profits during a year or from retained earnings. Usually, dividends come in the form of cash. But it may also cover share distribution or other benefits. Regardless of how investors get paid, dividends include […]
Does a Dividend Reduce Profit? (The answer is “No”) Read More »
Companies need finance to operate and continue their business. This finance comes from various sources. Usually, companies also offer a return to those who provide funds. These returns may differ based on several factors. Sometimes, it may be direct, while others are indirect. Either way, companies use these returns to attract more customers and make
Do Dividends Go On the Income Statement? Read More »
Most shareholders obtain a company’s shares for these investments’ returns. Usually, these returns come in two forms. The first is the gains in the value of a company’s shares. When investors acquire these instruments, they may expect the price to increase in the future. Once it happens, they dispose of the shares to get again
What is an Accelerated Dividend? (Explained) Read More »
Companies need finance to continue their operations. This finance usually comes from two sources, including debt and equity. Companies obtain debt finance from third parties. Similarly, they pay regular interest at a specific rate in exchange for these funds. Debt finance costs less compared to other finance sources. However, they may be more challenging to
What is a Final Dividend? How Does It work? Read More »
Dividends represent the distribution of resources to shareholders. Usually, these resources include cash or stock that a company pays from its profits. At the end of each accounting period, companies decide how much dividends to pay to their shareholders. Usually, this process occurs annually. In some cases, however, companies may also pay quarterly or ad-hoc
How Do I Account For Cash Dividends? (Explained) Read More »
Interim and final dividend An interim dividend is when the company announces a dividend during the year. This type of dividend is usually announced in mid-year or between the two annual general meetings. However, an announcement of the dividend requires authorization in the article of association. On the other hand, the final dividend is announced
Meaning of retained earnings The company operates in a business environment and strives to obtain higher and higher profits each year. The net profit is obtained by deducting the expenses from the revenues. These net profits are appropriated to reserves and surplus. Such profits when transferred to reserves and surplus after paying off the dividend
Auditing Retained Earnings and Dividend: Procedure, Risks, and Assertions Read More »
Cash Dividends: Cash dividends are declared by the board of directors “BOD” and paid to the stockholders or shareholders of the company. The BOD normally approves to pay the cash dividend at an annual general meeting of the company. It is the distribution of a part of the company’s retained earnings for the year. The
How Do Cash Dividends Impact Financial Statements? Read More »
The dividend is the total amount of money issued paid by the company to its shareholders from their profit. At the end of every financial year, every company announces calculate their profit & loss on the basis of transactions that occur during the year. If the company earns some profit during the year, then the
How Do Cash Dividends Affect the Statement of Cash Flow? Read More »
