Question Details

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 change	No change


	3.	Dividends are predominantly paid in 
a.	earnings.
b.	property.
c.	cash.
d.	stock.


	4.	If a stockholder receives a dividend that reduces retained earnings by the fair value of the stock, the stockholder has received a
a.	large stock dividend.
b.	cash dividend.
c.	contingent dividend.
d.	small stock dividend.


	5.	Of the various dividends types, the two most common types in practice are
a.	cash and large stock.
b.	cash and property.
c.	cash and small stock.
d.	property and small stock.





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