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1. A cash dividend does not reduce a corporations assets or equity, while a share dividend reduces both.
2. A company can change from one acceptable accounting principle to another as long as the change improves the usefulness of information in its financial statements or it is required by IFRS.
3. If a companys activities include operations that are being discontinued, the income or loss effects of the discontinued operations are included on the income statement in income from continuing operations.
4. The statement of comprehensive income is a detailed statement of net income plus or minus any other comprehensive income items.
5. A share dividend is a corporations distribution of its own shares to its shareholders without receiving any payment in return.
Question 1: When a corporation calls in its outstanding shares and issues more than one new share in exchange for each old share, this is a:
Question 2: Changes in accounting estimates are:
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