Question :
65.Which of the following statements correct?
A. The Common Stock Dividends Distributable : 1169124
65.Which of the following statements is correct?
A. The Common Stock Dividends Distributable account is shown as a current liability on the balance sheet.
B. When a stock dividend is distributed, no assets leave or enter the corporation.
C. When a stock dividend is declared, the total amount debited to Retained Earnings is the par value, or stated value, of the shares to be issued.
D. When a stock dividend is declared, the total amount of the dividend is debited to the Common Stock account.
66.Which of the following statements is not correct?
A. The entry to record the appropriation of retained earnings for warehouse construction includes a debit to Retained Earnings.
B. Appropriated retained earnings are listed separately on the balance sheet.
C. When retained earnings are appropriated, cash is set aside for a specific purpose.
D. Dividends cannot be declared from appropriated retained earnings.
67.A stock dividend transfers:
A. Retained earnings to contributed capital.
B. Contributed capital to retained earnings.
C. Contributed capital to assets.
D. Assets to contributed capital.
68.The declaration of a cash dividend will result in a decrease in:
A. Cash.
B. Retained earnings.
C. Contributed capital.
D. Income taxes.
69.An appropriation of retained earnings represents
A. cash set aside for some designated purpose.
B. a portion of retained earnings that is currently unavailable for dividends.
C. a current liability of the corporation.
D. a current asset of the corporation.
70.Total stockholders’ equity would be decreased by
A. a stock split.
B. an appropriation of retained earnings.
C. a cash dividend.
D. a stock dividend.
71.On April 15, the board of directors declared a 2 for 1 split on Samco’s 20,000 outstanding shares of $10 par, common stock. After the split, the total number of shares and par value per share are:
A. 20,000 shares, $10 par.
B. 10,000 shares, $20 par.
C. 40,000 shares, $5 par.
D. 20,000 shares, $5 par.
72.Which of the following would not change the amount of total retained earnings for the year?
A. cash dividends declared and distributable
B. the net income after taxes for the year
C. stock dividends declared and distributed
D. the transfer of retained earnings appropriated for treasury stock
73.A formal method by which a company can restrict dividend distributions.
A. Deferral.
B. Appropriation.
C. Declaration.
D. Reserve.
74.A corporation reacquired 400 shares of its $100 par-value common stock for $105 a share. The entry to record this transaction includes a
A. debit to Treasury Stock—Common for $40,000.
B. debit to Treasury Stock—Common for $42,000.
C. credit to Paid-in Capital for Treasury Stock Transactions—Common for $40,000.
D. credit to Treasury Stock—Common for $42,000.
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