Recent Question

Dividends are predominantly paid in 1. Which one of the following events would not require a formal journal entry on a corporation's books? a. 2 for 1 stock split b. 100% stock dividend c. 2% stock dividend d. $1 per share cash dividend 2. Stock dividends and stock splits have the following effects on retained earnings: Stock Splits Stock Dividends a. Increase No change b. No change Decrease c. Decrease Decrease d. No cha ...

Other / Other 06 Apr 2016

The declaration of a stock dividend 1. The per share amount normally assigned by the board of directors to a large stock dividend is a. the market value of the stock on the date of declaration. b. the average price paid by stockholders on outstanding shares. c. the par or stated value of the stock. d. zero. 2. The per share amount normally assigned by the board of directors to a small stock dividend is a. the market value of the ...

Other / Other 06 Apr 2016

Cash dividends are not a liability of the corporation true or false: 1. Dividends may be declared and paid in cash or stock. 2. Cash dividends are not a liability of the corporation until they are declared by the board of directors. 3. The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified. 4. A 10% stock divi ...

Other / Other 06 Apr 2016

Restricted retained earnings are available for preferred stock true or false: 1. Retained earnings that are restricted are unavailable for dividends. 2. Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends. 3. A retained earnings statement shows the same information as a corporation income statement. 4. A detailed stockholders' equity section in the balance shee ...

Other / Other 06 Apr 2016

The declaration and distribution of a stock 1. Dividends Payable is classified as a a. long-term liability. b. contra stockholders' equity account to Retained Earnings. c. current liability. d. stockholders' equity account. 2. Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections: Total Assets Total Liabilities Total Stockholders' Equity a. Increase Decrease No change b. ...

Other / Other 06 Apr 2016

A stockholder who receives a stock dividend 1. The board of directors must assign a per share value to a stock dividend declared that is a. greater than the par or stated value. b. less than the par or stated value. c. equal to the par or stated value. d. at least equal to the par or stated value. 2. Corporations generally issue stock dividends in order to a. increase the market price per share. b. exceed stockholders' dividend ...

Other / Other 06 Apr 2016

Common Stock Dividends Distributable 1. The effect of the declaration of a cash dividend by the board of directors is to Increase Decrease a. Stockholders' equity Assets b. Assets Liabilities c. Liabilities Stockholders' equity d. Liabilities Assets 2. The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to a. decrease total liabilities and stockholders' equity. b. in ...

Other / Other 06 Apr 2016

A prior period adjustment is reported as an adjustment of the beginning true or false: 1. A dividend based on paid-in capital is termed a liquidating dividend. 2. Common Stock Dividends Distributable is reported as additional paid-in capital in the stockholders' equity section. 3. A prior period adjustment is reported as an adjustment of the beginning balance of Retained Earnings. 4. Income tax expense and the related l ...

Other / Other 06 Apr 2016

Retained earnings represents the amount of cash available true or false: 1. Retained earnings represents the amount of cash available for dividends. 2. Net income of a corporation should be closed to retained earnings and net losses should be closed to paid-in capital accounts. 3. A debit balance in the Retained Earnings account is identified as a deficit. 4. A correction in income of a prior period involves either a debit o ...

Other / Other 06 Apr 2016

A corporation is not committed to a legal obligation 1. Regular dividends are declared out of a. Paid-in Capital in Excess of Par. b. Treasury Stock. c. Common Stock. d. Retained Earnings. 2. A corporation is not committed to a legal obligation when it declares a. a cash dividend. b. either a cash dividend or a stock dividend. c. a stock dividend. d. a distribution date. 3. Which of the following is not a significant date ...

Other / Other 06 Apr 2016