Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Dividends and Dividend Preferences

Financial Accounting

12. Stockholders' Equity

Dividends and Dividend Preferences

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Multiple Choice

Which of the following types of shares are typically eligible to receive dividends?

Authorized but unissued shares

Preferred shares

Treasury shares

Unissued shares

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Verified step by step guidance

Understand the concept of dividends: Dividends are payments made by a corporation to its shareholders, typically as a distribution of profits. Only certain types of shares are eligible to receive dividends.

Review the types of shares mentioned in the problem: Authorized but unissued shares, preferred shares, treasury shares, and unissued shares. Each type has specific characteristics that determine its eligibility for dividends.

Analyze preferred shares: Preferred shares are a class of stock that typically have priority over common shares in receiving dividends. They are explicitly designed to receive dividends before common shareholders.

Examine treasury shares: Treasury shares are shares that the company has repurchased and holds in its own treasury. These shares are not eligible to receive dividends because they are not considered outstanding shares.

Evaluate authorized but unissued and unissued shares: Authorized but unissued shares are shares that a company is allowed to issue but has not yet issued. Unissued shares are simply shares that have not been issued. Neither of these types of shares are eligible to receive dividends because they are not held by shareholders.