Notes
Notes - notes.io |
A dividend is a payment made by a corporation to its shareholders, typically in the form of cash or additional shares.
2. *Three Important Dates for Dividends:*
- Declaration Date
- Ex-Dividend Date
- Payment Date
3. *Requirement for Cash Dividend:*
Corporations must have sufficient retained earnings to pay cash dividends.
4. *Contrast between Cash and Stock Dividend:*
- Cash Dividend: Pays shareholders in cash.
- Stock Dividend: Pays shareholders in additional shares of stock.
5. *Purpose of Retained Earnings Restrictions:*
To control and allocate funds for specific purposes, such as future investments or debt reduction.
6. *Causes of Retained Earnings Restriction:*
- Legal restrictions
- Loan agreements
- Board decisions
7. *Reporting Retained Earnings Restriction:*
Disclosed in the footnotes of financial statements.
8. *Reasons Corporations Make Investments:*
- Generate returns
- Diversify portfolios
- Strategic business reasons
9. *Accounting for Debt Investment:*
Recorded at cost and adjusted for amortization or impairment.
10. *Difference: Cost vs. Equity Method:*
- Cost Method: Simplest, records investment at cost.
- Equity Method: Significant influence, reports share of investee's earnings.
11. *Debt Securities and Categories:*
Debt securities represent loans to other entities.
Categories: Held-to-Maturity, Available-for-Sale, Trading.
12. *Statement of Cash Flows:*
A financial statement showing cash generated and used during a specific period.
13. *Usefulness of Statement of Cash Flows:*
- Highlights cash position
- Assists in financial analysis
- Evaluates liquidity
14. *Classification of Cash Flows:*
- Operating
- Investing
- Financing
15. *Why Companies Choose Indirect Method:*
Simpler and more widely used, reconciles net income to net cash provided by operating activities.
16. *Sources for Indirect Method:*
- Comparative balance sheets
- Current income statement
- Additional information
17. *Free Cash Flow & Formula:*
The cash available for distribution to investors after necessary investments.
Formula: Operating Cash Flow - Capital Expenditures
18. *Ratio Analysis and Classifications:*
Examines relationships between financial variables.
Classifications: Liquidity, Profitability, Solvency, Efficiency.
|
|
Notes.io is a web-based application for taking notes. You can take your notes and share with others people. If you like taking long notes, notes.io is designed for you. To date, over 8,000,000,000 notes created and continuing...
With notes.io;
- * You can take a note from anywhere and any device with internet connection.
- * You can share the notes in social platforms (YouTube, Facebook, Twitter, instagram etc.).
- * You can quickly share your contents without website, blog and e-mail.
- * You don't need to create any Account to share a note. As you wish you can use quick, easy and best shortened notes with sms, websites, e-mail, or messaging services (WhatsApp, iMessage, Telegram, Signal).
- * Notes.io has fabulous infrastructure design for a short link and allows you to share the note as an easy and understandable link.
Fast: Notes.io is built for speed and performance. You can take a notes quickly and browse your archive.
Easy: Notes.io doesn’t require installation. Just write and share note!
Short: Notes.io’s url just 8 character. You’ll get shorten link of your note when you want to share. (Ex: notes.io/q )
Free: Notes.io works for 12 years and has been free since the day it was started.
You immediately create your first note and start sharing with the ones you wish. If you want to contact us, you can use the following communication channels;
Email: [email protected]
Twitter: http://twitter.com/notesio
Instagram: http://instagram.com/notes.io
Facebook: http://facebook.com/notesio
Regards;
Notes.io Team
