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Yes, to the extent of Earnings and Profits, there after it must be considered either return of capital to the extent of the shareholders basis or as long term capital gains.

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Q: Can accumulated profits be distributed as dividend?
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What does accumulated earnings mean?

The definition of accumulated earnings is the sum of the profits of a company after dividend payments since the inception of the company. Accumulated earnings are also called earned surplus, retained earnings, or retained capital.


Can dividend be declared out of revaluation of fixed assets justify?

No, Dividend Can't be declared out of revaluation of fixed assets. dividend may be declared by a company for that year out of the accumulated profits earned by it in previous years and transferred by it to the reserves, But not from revaluation reserve as its a unrealized profit...


What is accumulated dividend?

A dividend due, but not yet paid, to a preferred stock holder.


What are the main functions of the dividends and profits?

Dividends are those where you get from the profits . dividend is that share or a part of profit of a company which is distributed among the share holders . if the the company gets more profit you can expect more return on your investment.


What does a shareholder qet when a dividend is paid?

A shareholder gets a portion of the companies profits when a dividend is paid.


What does a shareholder get when dividend is paid?

A share of a company's profits


What does dividend?

a small section of anything


What is divisible profit?

The profits available for the distribution among the shareholders of a company as dividend are called divisible profits.


What does dividend dynamics mean?

what causes a company's dividend rise faster than it's own profits dictate.


You sold 200 shares of stock today for 61.80 a share You bought those shares 1 year ago at a total cost of 14210 What is the amount of the dividend income you received on this investment?

THere is no way to calculate your dividend income from these figures, only your capital gains (or in this case, capital loss of $1850). Dividend income is money, usually profits, distributed to the stockholders from the company.


What is the relevance of dividend cover if dividends are paid out of distributable profits?

Because dividend cover represents the amount of times by which dividends can be paid by profits. i.e. the company's ability to pay it's dividends. The higher the dividend cover the greater the ability of the company to pay dividends out of it's distributable profits. Dividends according to companies act legislation can only be paid out of distributable profits hence the relevance of dividend cover represents the companies ability to pay their dividends.


Does dividend reduce profits?

When a corporation declares and pays a dividend, the dividend does not reduce the current accounting period's profit reported on the income statement. In other words, a dividend is not an expense.Dividends will reduce the amount of the corporation's retained earnings. Retained earnings are reported in the stockholders' equity section of the balance sheet.If a corporation has very profitable uses for its cash, its future profits might be less if it pays dividends instead of reinvesting the cash dividend amounts into profitable projects.