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

Who is most likely to receive dividends from a mutual insurer?

Policyholders

Bondholders

Employees

Shareholders

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Verified step by step guidance

Understand the concept of a mutual insurer: A mutual insurer is an insurance company owned by its policyholders. Unlike stock insurers, mutual insurers do not have shareholders.

Recognize the role of policyholders in a mutual insurer: Policyholders are both customers and owners of the company. They have a direct stake in the company's financial performance.

Learn how dividends work in a mutual insurer: Dividends are typically distributed to policyholders as a return of excess premiums or profits, reflecting their ownership interest.

Clarify why other groups do not receive dividends: Bondholders are creditors, not owners, and receive interest payments instead of dividends. Employees receive salaries or wages, not dividends. Shareholders do not exist in a mutual insurer structure.

Conclude that policyholders are the most likely to receive dividends from a mutual insurer, as they are the owners of the company.