Acctg17: Accounting for Corporation

Dividends are a form of interest paid by companies to their shareholders.

• True

• False

Companies are required to pay dividends to their shareholders.

• True

• False

There are three important dates relating the dividends

• True

• False

Formal action to approve the dividends by the board of directors is necessary.

• True

• False

Cash dividends have no effect in the total stockholders’ equity of a corporation.

• True

• False