Question :
75.A small stock dividend recorded at:
A. Market value.
B. Book value.
C. : 1259491
75.A small stock dividend is recorded at:
A. Market value.
B. Book value.
C. Par value.
D. No amount, just a memorandum entry is required.
76.Stock splits:
A. Allow management to conserve cash.
B. Give stockholders more shares.
C. Cause no change in total assets, liabilities, or stockholders’ equity.
D. Allow management to conserve cash, give stockholders more shares, and cause no change in total assets, liabilities, or stockholders’ equity.
77.Which of the following would have no effect on Retained Earnings?
A. Declaration of a cash dividend.
B. Declaration of a stock dividend.
C. Declaration of a stock split.
D. A prior period adjustment.
78.On January 31, 2015, Village Bank had 500,000 shares of $2 par value common stock outstanding. On that date, the company declared a 14% stock dividend when the market price of the stock was $37 per share. The immediate effect of this dividend upon Village Bank was:
A. A reduction in cash of $2,590,000.
B. A reduction in retained earnings of $2,590,000.
C. A reduction in retained earnings of $140,000.
D. A liability to the stockholders of $140,000.
79.Large stock dividends tend to:
A. Increase stock prices.
B. Have no effect upon stock prices.
C. Keep stock prices down.
D. Decrease total assets.
80.To receive the next cash dividend, an investor must purchase the stock before the:
A. Dividend declaration date.
B. Ex-dividend date.
C. Date of record.
D. Payment date announced by the board of directors.
81.Dividends become a liability of a corporation:
A. On the date the board of directors declares the dividend.
B. On the date of record.
C. On the date payment is to be made.
D. When cumulative preferred stock dividends are in arrears.
82.A liquidating dividend:
A. Occurs when a corporation distributes shares of its own stock as a dividend, rather than cash.
B. Occurs whenever a corporation distributes non-cash assets as a dividend to its stockholders.
C. Represents a distribution of a corporation’s profits to the stockholders.
D. Represents a return of invested capital to a corporation’s owners, the stockholders.
83.Dividends are first recorded and retained earnings are reduced on:
A. The ex-dividend date.
B. The date of record.
C. The date of declaration.
D. The date of payment.
84.As a result of a 5% stock dividend:
A. Total stockholders’ equity decreases by 5%.
B. The par value per share decreases by 5%.
C. The number of shares owned by each stockholder increases by 5%, but total stockholders’ equity does not change.
D. Both the number of shares outstanding and the total stockholders’ equity increase by 5%.
