Question : 31) When a stock dividend received, the stockholder would: A) own : 1230036

Accounting

31) When a stock dividend is received, the stockholder would:

A) own more shares of stock.

B) anticipate the par value of the stock to increase.

C) expect the market price per share to increase.

D) expect retained earnings to decrease.

32) A stock dividend is considered small when it is a dividend of:

A) less than 30% bur greater than 25% of the corporation’s issued stock.

B) between 50% and 100% of the corporation’s issued stock.

C) more than 30% of the corporation’s issued stock.

D) 25% or less of the corporation’s issued stock.

33) The per share amount usually given to a large stock dividend is:

A) the average per share price of outstanding stock.

B) the par value of the stock.

C) the current market value of the stock.

D) zero, since the stockholder is not receiving cash.

34) A small stock dividend will:

A) reduce total assets.

B) reduce total owners’ equity.

C) increase total owners’ equity.

D) have no effect on total assets or total owners’ equity.

35) Fortune, Inc. declares a 10% common stock dividend when it has 20,000 shares of $10 par value common stock outstanding. If the market value of the common stock is $25, the journal entry to record the stock dividend would include a:

A) debit to Retained Earnings $50,000.

B) debit to Retained Earnings $20,000.

C) credit to Paid-in Capital in Excess of Par Value $50,000.

D) credit to Paid-in Capital in Excess of Par Value $20,000

36) Fortune, Inc. declares a 10% common stock dividend when it has 20,000 shares of $10 par value common stock outstanding. If the market value of the common stock is $25, the journal entry to record the stock dividend would include a:

A) credit to Common Stock $50,000.

B) credit to Common Stock $20,000.

C) credit to Paid-in Capital in Excess of Par Value $30,000.

D) credit to Paid-in Capital in Excess of Par Value $20,000

37) Wildcat, Inc. declared a 10% stock dividend when it had 150,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to:

A) Retained Earnings $150,000.

B) Paid-in Capital in Excess of Par $135,000.

C) Common Stock $150,000.

D) Retained Earnings $15,000.

38) An increase in the number of authorized, issued and outstanding shares of stock along with a proportional reduction in the stock’s par value is a:

A) deficit.

B) stock dividend.

C) stock split.

D) cash dividend.

39) A stock split:

A) increases Assets and decreases Stockholders’ Equity.

B) decreases Assets and increases Stockholders’ Equity.

C) increases Common Stock and decreases Paid-in Capital.

D) has no effect on total equity.

40) On November 24th, B & B Corporation declared a $0.40 per share cash dividend. The dividend will be payable on December 12th to the stockholders of record as of December 5th. B&B Corporation has 25,500 shares of $1 par value common stock outstanding on November 24th. On December 12th, B& B had 30,000 shares of $1 par value common stock outstanding. Prepare the journal entries on the declaration and payment dates.

Continue to order Get a quote

July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.