Distributions to Stockholders: Legal Distinctions and Accounting Implications for Classroom Discussion

Document Type



Published by the American Accounting Association in Issues in Accounting Education, volume 10, Issue 2, pages 307-316.

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Publication Source

Issues in Accounting Education


This paper reviews the legal requirements for stockholder distributions in a number of states, as well as textbook coverage of this issue. It was found that legal distribution requirements are often at variance with their presentation in accounting textbooks.