Question Details

The date on which a cash dividend becomes a binding legal 



1.	Each of the following decreases retained earnings except a
a.	cash dividend.
b.	liquidating dividend.
c.	stock dividend.
d.	All of these decrease retained earnings.

	2.	Each of the following decreases total stockholders' equity except a
a.	cash dividend.
b.	liquidating dividend.
c.	stock dividend.
d.	All of these decrease total stockholders' equity.

	3.	Which one of the following is not necessary in order for a corporation to pay a cash dividend?
a.	Adequate cash
b.	Approval of stockholders
c.	Declaration of dividends by the board of directors
d.	Retained earnings

	4.	If a corporation declares a dividend based upon paid-in capital, it is known as a
a.	scrip dividend.
b.	property dividend.
c.	paid dividend.
d.	liquidating dividend.

	5.	The date on which a cash dividend becomes a binding legal obligation is on the
a.	declaration date.
b.	date of record.
c.	payment date.
d.	last day of the fiscal year-end.




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