Part 1 of 5 05 pints Knowledge Check 01 Which of the following statements about dividends are true? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. ? Dividends reduce Retained Earnings ? Stockholders are legally entitled to dividends. A corporation's board of directors chooses whether or not to declare dividends. ? A corporation is legally obligated to distribute dividends once they are declared.

Please help me. Thankyou.

For each of the following statements regarding dividends, indicate whether it is true or false. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) The date of payment reflects the date a cash dividend is paid to stockholders. ? A stock dividend Increases the number of outstanding shares. ? The account Pald-in Capital in Excess of Par Value is always credited when a large stock dividend is declared. ? A large stock dividend is a distribution of more than 25% of previously outstanding shares.

2