Cash dividend Stock dividend Stock split Decreases retained earnings Has no effect on a liability Increases paid-in capital by the same amount that it decreases retained earnings Decreases both total assets and total stockholders' equity Has no effect on total stockholders' equity

Cash dividend Stock dividend Stock split Decreases retained earnings Has no effect on a liability Increases paid-in capital by the same amount that it decreases retained earnings Decreases both total assets and total stockholders' equity Has no effect on total stockholders' equity

Name: Determining the effects of cash dividends, stock dividends, and stock
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Description: Determining the effects of cash dividends, stock dividends, and stock splitsComplete the following chart by inserting a check mark (√) for each statement that is true. Cash dividendStock dividendStock splitDecreases retained earningsHas no effect on

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 16MCQ

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Similar questions

Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders equity under each of the following methods?
The excess of the sales price of treasury stock over its cost should be credited to: Retained Earnings Paid-in Capital from Treasury Stock Treasury Stock Extraordinary Gain None of these
Which of the following is NOT correct regarding trading securities * a. Unrealized holding gains or losses are reported in profit or loss b. Share in profit of the investee increases carrying value of the investment c. These are classified as current assets. d. Cash dividends shall be recognized as dividend income
When treasury stock accounted for by the cost method is subsequently sold for more than its purchase price, the excess of the cash proceeds over the carrying value of the treasury stock should be recognized as: a.an increase in retained earnings b.income from continuing operations c.an ordinary gain d.an increase in additional paid-in capital
________ are paid from contributed capital instead of retained earnings. Group of answer choices Fund dividends Liquidating dividends Stock dividends Property dividends
Indicate whether statements regarding dividends is true or false. Cash and stock dividends reduce retained earnings.
The wealth created by a company is reflected in the Select one: a. Current liabilities O b. Current assets O c. Market value of the company equity shares d. None of the options O e. Fixed assets
Contributed capital does not include a. Preference shares b. Share premium on preference shares c. Capital accumulated by retention of earnings d. Ordinary shares
The most important factor to consider when determining the dividends to be declared is a. the impact of inflation on replacement costs b. any future planned use of retained earnings d. the future planned use of cash available at the date of dividend distribution e. shareholders’ expectation about the firms’ profitability
When stock is purchased with cash and held in treasury,what is the impact on the balance sheet equation?a. No change—the reduction of the asset Cash is offsetwith the addition of the asset Treasury Stock.b. Assets decrease and stockholders’ equityincreases.c. Assets increase and stockholders’ equitydecreases.d. Assets decrease and stockholders’ equitydecreases.
Retained earnings refers to Group of answer choices Cash and other assets The amount of net income retained in the corporation Common stock that the firm can distribute as dividends None of the other choices are correct.