Question Details

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 with respect to dividends?
a.	The declaration date
b.	The incorporation date
c.	The record date
d.	The payment date

	4.	On the dividend record date,
a.	a dividend becomes a current obligation.
b.	no entry is required.
c.	an entry may be required if it is a stock dividend.
d.	Dividends Payable is debited.

	5.	Which of the following statements regarding the date of a cash dividend declaration is not accurate?
a.	The dividend can be rescinded once it has been declared.
b.	The corporation is committed to a legal, binding obligation.
c.	The board of directors formally authorizes the cash dividend.
d.	A liability account must be increased.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help