Which of the following correctly reflects the effect of dividend? a. On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease b. On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease c. On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease d. On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect

Which of the following correctly reflects the effect of dividend? a. On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease b. On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease c. On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease d. On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

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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.
Which of the following correctly reflects the effect of dividend? a. On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect b. On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease c. On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease d. On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease Which of the following illustrates the effect of 15% share dividend declared and issued when the market price is higher than the par value? * a. RETAINED EARNINGS - Increase, SHARE PREMIUM - Decrease, TOTAL EQUITY - Increase b.RETAINED EARNINGS - Increase, SHARE PREMIUM - Increase, TOTAL EQUITY - Increase c. RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - No…
Which of the following correctly reflects the effect of dividend? On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease
1. Which of the following correctly reflects the effect of dividend? On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect 2. Which of the following illustrates the effect of 15% share dividend declared and issued when the market price is higher than the par value? RETAINED EARNINGS - Increase, SHARE PREMIUM - Decrease, TOTAL EQUITY - Increase RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - No effect RETAINED EARNINGS - Increase, SHARE PREMIUM - Increase, TOTAL EQUITY - Increase RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - Decrease 3. Which of the following…
The type of dividend that does not affect total assets and total shareholders' equity is a. share capital dividendb. property dividendc. cash dividendd. scrip dividend
How would the share dividends distributable account balance be presented on the statement of financial position? * a. as part of current liabilities b. as addition to share capital c. as addition to retained earnings d. as addition to additional paid in capital
How would a share split affect the amount of total share capital, total shareholder's equity and retained earnings, respectively? a. No effect ;No effect ;No effect b. Increase;Increase;No effect c. No effect;No effect;Increase d. Decrease;Decrease;Decrease
The effect of a share dividend is to transfer assets to stockholders assets to contributed capital equity from retained earnings to contributed capital equity from contributed capital to retained earnings
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When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capitalb. fair market value of the share capital on the date of recordc. fair market value of the share capital on the date of declarationd. fair market value of the share capital on the date of distribution
Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares
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