Question Details

effect the declaration and distribution of a stock dividend





1.	Identify the effect the declaration and distribution of a stock dividend has on the par value per share.
	Par Value per Share
a.	Increase
b.	Decrease
c.	Increase or decrease
d.	No effect



	2.	The declaration of a stock dividend will
a.	increase paid-in capital.
b.	change the total of stockholders' equity.
c.	increase total liabilities.
d.	increase total assets.



	3.	Which of the following show the proper effect of a stock split and a stock dividend?
		Item		Stock Split	Stock Dividend
a.	Total paid-in capital	Increase	Increase
b.	Total retained earnings	Decrease	Decrease
c.	Total par value (common)	Decrease	Increase
d.	Par value per share	Decrease	No change



	4.	A stock split
a.	may occur in the absence of retained earnings.
b.	will increase total paid-in capital.
c.	will increase the total par value of the stock.
d.	will have no effect on the par value per share of stock.



	5.	Outstanding stock of the Zone Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 5%, $10 par noncumulative preferred stock. In 2012, Zone declared and paid dividends of $2,000. In 2013, Zone declared and paid dividends of $6,000.  How much of the 2013 dividend was distributed to preferred shareholders?
a.	$3,000
b.	$3,500
c.	$2,500
d.	None of the above






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