Question: Distinguish among: cash dividends, property dividends, liquidating

dividends, and stock dividends.

Answer
Dividends come in a variety of forms, some of which do not require monetary delivery to
shareholders.
Step-by-Step Solution
Step 1: Meaning of Cash Dividend
The cash dividend is by far the most popular sort of payout. The board of directors
resolves on the date of the declaration to pay a certain dividend amount in cash to those
investors who hold the company's stock on a specific date.
Step 2: Meaning of Property Dividend
Rather than paying cash or stock to investors, a corporation may pay a non-
monetary dividend.
This distribution should be recorded at the fair market value of the assets that were
dispersed. Because the fair market value of the assets is likely to differ from the book
value, the corporation will most likely record the difference as a gain or loss.
Step 3: Meaning of liquidating Dividends
A liquidation dividend occurs when the board of directors wishes to return the
capital originally given by shareholders as a dividend, and it may be a forerunner to
the business being shut down.
Step 4: Meaning of Stock Dividends
A stock dividend is the unrestricted distribution of a company's common stock to its
common shareholders. Treat the transaction as a stock dividend if the corporation
issues less than 25% of the total number of previously existing shares.
Step 5: Distinction among all Above Dividend
A cash dividend is a monetary payment, whereas a property dividend is a distribution
of non-cash assets. A liquidating dividend is one that is not based on retained
earnings. A stock dividend is the issue of additional shares of a corporation's stock to
existing owners in a nonreciprocal exchange with no change in the par or stated value.