5. Which of the following would immediately cause a change in a corporation's retained earnings? A. Net income or net loss and declaration of dividends. B. Declaration of dividends and issuance of common stock to new stockholders. C. Net income and issuance of stock to new stockholders. D. Declaration of dividends and purchase of new machinery.

5. Which of the following would immediately cause a change in a corporation's retained earnings? A. Net income or net loss and declaration of dividends. B. Declaration of dividends and issuance of common stock to new stockholders. C. Net income and issuance of stock to new stockholders. D. Declaration of dividends and purchase of new machinery.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 21MC: Which of the following measures the portion of a corporations profit allocated to each outstanding...

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Retained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.
23.Which of the following would not be found on the statement of changes in stockholders’ equity? a. Net loss b. Proceeds from the sale of bonds c. Sale of common stock d. Payment of cash dividends
2. The change in retained earnings is affected by which of the following? (a) Payment of dividends and common stock. (b) Net income and payment of dividends. (c) Net income and paid-in capital. (d) Net income and common stock.
When a company issues a stock dividend which of the following would be affected? a. Earnings per share. b. Total assets. c. Total liabilities. d. Total stockholders’ equity.
96. An entity declared a cash dividend on a certain date, payable on another date. Retained earnings would * O A. Increase on the date of declaration B. Not be affected on the date of declaration O C. Not be affected on the date of payment D. Decrease on the date of payment
The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase assets and increase stockholders' equity b. increase stockholders' equity and decrease liabilities C. decrease liabilities and decrease stockholders' equity d. decrease assets and decrease stockholders' equity A Moving to the next question prevents changes to this answer.
Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.
4. From a practical point of view, according to financial compliance, dividends must be:a) Remuneration to creditors from company profits.b) Distributions to shareholders from company profits generated in the last period.c) Distributions to creditors and shareholders.d) Distributions among the shareholders from the profits of the company from its own origin.
22. Which of the following is not included on the statement of changes in stockholders’ equity? a. Dividends b. Capital invested by the owners c. Capital returned to the owners d. Total assets
In a limited company which of the following is shown in the statement of changes in equity? a. Loan note interest and dividends b. Dividends paid and transfer to reserves c. Transfer to reserves and loan note interest d. Directors remuneration and Dividends paid
similarities and differences between paid in capital and retained earnings? When does a company declare a cash dividend? Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation?
Which of the following items has no effect on the Accumulated Adjustments Account (AAA) of an S Corporation? O Short-Term Capital Loss. O Additional stock purchases by a sharehoklder of the S Corporation. O Cost Of Goods Sold. O Administrative Expenses.