Different Types of Blood Cells and Their Roles in the Human Body. Different Types of Blood Cells and Their Roles in the Human Body Blood is a mixture of two things: cells and plasma. The heart pumps blood through the arteries, capillaries and veins to provide oxygen and nutrients to every cell of the body. The blood also carries away waste products.
Common stock and retained earnings. When a company issues common stock to raise capital, the proceeds from the sale of that stock become part of its total shareholders' equity but do not affect retained earnings. However, common stock can impact a company's retained earnings any time dividends are issued to stockholders. When a company pays dividends, it must debit that payment to retained earnings, which means its retained earnings balance will drop by the value of the dividends it has issued.
A: Whether or not a dividend paid to shareholders affects the issuing company's retained earnings account depends entirely on the type of dividend. While cash dividends have a straightforward effect on retained earnings, the issuance of stock dividends is slightly more complicated.When a company wants to issue dividends to its shareholders but doesn't have excess cash on hand, it may choose to issue a stock dividend.Companies may also choose this option as a means of decreasing the value of existing shares, driving down the price to earnings (P/E) ratio and other important financial metrics.hile a small stock dividend has a greater effect on the retained earnings account, the total worth of the company actually remains unaffected by stock dividends of any size.