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1) A long-term note secured by collateral may be referred to as a
a) premium.
b)bond.
c)debenture.
d)mortgage.
2) Which of the following usually represents the largest number of common shares?
a)treasury shares.
b)authorized shares.
c)issued shares.
d)restricted shares.
What is the effect of the declaration of a cash dividend? like increase or decrease to either liability, asset, statement of income,
3) At December 31, 2022, Marigold Inc. has 14200, $4, cumulative
a) the company will owe the preferred shareholders nothing further.
b) the company still has to pay the preferred shareholders $56800, regardless of what amount was declared.
c) the company will still owe the preferred shareholders $2400 and should record a dividend payable for this amount.
d) $2400 will be disclosed as dividends in arrears in the notes to the financial statements.
4) If a corporation declares a 10% stock dividend on its common shares, the account to be debited on the date of declaration is
a)dividends declared.
b) common shares.
c) share capital.
d) stock dividends distributable.
5)Stock Dividends Distributable is classified as a(n)
a) shareholders' equity account.
b) liability account.
c) asset account.
d) expense account.
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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.arrow_forwardDividends are paid on the a. date of record. b. distribution date. c. declaration date. d. ex dividend date.arrow_forwardThe cost of retained earnings is less than the cost of ordinary shares because of *a. the issuance cost.b. agency costs of free cash flow.c. the taxation on earnings.d. the trust fund doctrine.arrow_forward
- On the statement of cash flows, the cash flows from financing activities section would include all of the following except Group of answer choices receipts from the sale of bonds payable payments for dividends payments for purchase of treasury stock payments of interest on bonds payablearrow_forwardWhich of the following is classified as a financing activity? Receipt of dividend income Receipt of interest on loan receivable Payment of dividends Investment in another company’s stockarrow_forwardOn the statement of cash flows, the cash flows from investing activities section would include a. payments for retirement of bonds payable b. receipts from the issuance of common stock c. payments for dividends d. receipts from the sale of investmentsarrow_forward
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