Question 131.25 pointsSave AnswerThe cumulative effect of the declaration and distribution of a stock dividend on a company's balance sheet is to:O A. increase assets and stockholders' equityO B. decrease retained earnings and increase paid-in capitalOc. decrease paid-in capital and stockholders' equityO D. decrease current liabilities and stockholders' equity

Stock Dividend is where stocks are distributed as dividend to shareholders. In stock dividend , the…

Answered: The cumulative effect of the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 16MCQ

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What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively? a. Decrease and no effect b. Increase and no effect c. Decrease and increase d. Increase and decrease
OKS What is the result of stock dividends? O a. Retained earnings decrease while total paid-in capital increases. O b Retained earnings inccrease while total paid-in capital decrease. O c. Both retained earnings and total paid-in capital decrease. d. Both retained earnings and total paid-in capital increase. POCOPHONE SHOT ON POCOPHONE F1
Problem #1 Effects of Transactions Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Сapital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of tre stock below cost Problem #2 Effect of Cash Dividend Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect Bernal Inc.'s total assets, liabilities and shareholders' equity: Shareholders' Assets Liabilities Equity 1. Declaring a cash dividend Paying the cash dividend declared in no. 1 2. 3. Declaring a share dividend 4, Issuing share certificates for the share dividend declared in no. 3 5. Authorizing and issuing share certificates in a share split
Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock
While the discounted dividend model values a company’s stock based on its dividends, the corporate valuation model values a company’s stock based on the company’s: Question 49 options: Assets Free cash flow Net income Book value of equity
8. How would total stockholders' equity be effected by the declaration of each of the following? Stock dividend a. No effect b. Decrease c. Decrease d. No effect Stock Split Increase Decrease No effect No effect
Current Attempt in Progress Identify the effect the declaration of a stock dividend has on total share capital, retained earnings, and shareholders' equity. O O O Total Share Capital Retained Earnings no effect increase decrease increase increase decrease decrease decrease Shareholders' Equity increase decrease no effect no effect
Q42 Which item would NOT form part of the shareholders' equity of a company on the statement of financial position? Select one: a. Ordinary share capital b. Retained Earnings c. Trade payables d. Share premium
Quèstion 14 "If management wishes to capitalize part of the earnings, it may issue a" share dividend. liquidating dividend cash dividend property dividend
Questions: 1. Return on total assets 2. Return on common stockholder's equity 3. Book value per share
13. For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a reduction from retained earningsb. an increase in the investments available for sale accountc. a reduction in the investments available for sale accountd. dividend revenue
Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as: O A footnote O An increase in current liabilities O An increase in current liabilities for the current portion and long-term liabilities for the long-term portion O An increase in stockholders' equity

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