Chapter 16 Stockholder’s Equity:Retained Earnings
After studying this chapter you should be able to:
Describe the policies used in distributing dividends.
Identify the various forms of dividend distributions.
Explain the accounting for small and large stock dividends.
Distinguish between stock dividends and stock splits.
Explain the effect of different types of preferred stock dividends.
Identify the reasons for appropriating retained earnings.
Explain accounting and reporting for appropriated retained earnings.
Indicate how stockholders’ equity is presented and analyzed.