Two ways that owners can get money from their business are by declaring dividends on their shares,
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Two ways that owners can get money from their business are by declaring dividends on their shares, and by paying salaries and bonuses. For each of the following, indicate whether it is true or false.
A. Dividend payments to owners must be made in proportion to the amount of shares held by each owner.
B. Dividend payments to owners are subject to FICA and other employer payroll taxes.
C. Bonuses paid to shareholders must be made strictly in accordance with the amount of shares each owner owns.
D. Dividends paid by the company reduce net income.
E. Bonuses paid by the company reduce net income.
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Related Book For
Introductory Accounting A Measurement Approach For Managers
ISBN: 9781138956216
1st Edition
Authors: Daniel P. Tinkelman
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