1. 7. The expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues – Expenses – Dividends – Treasury Stock. Which one of the following transactions does not affect the balance of retained earnings?? For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. C. A three-for-two stock split is equivalent to a 100% stock dividend. to stockholders.unanswered. Choose Numerator: Price Earnings Ratio 1 Choose Denominator: / Price Earnings Ratio Price Earnings Ratio = < Price Earnings Ratio Future Performance Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? *Stock Dividends Are A … *A Stock Dividend Commonly Indicates Management's Confidence That The Company Is Doing Well. (You may select more than one answer. l!! Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity. All of the following statements are true regarding preferred stock except: A. companies usually issue preferred stock with a par value. (B) The Act is meant to decrease the likelihood of unethical corporate behavior. (You May Select More Than One Answer.) A. ___Stock dividends are a mechanism to keep the market price of 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.) A) policyowner dividends are received tax-free. The declaration date is the day on which a company issues a statement declaring its intent to pay a dividend. a The direct method requires reconstructing the income statement from top to bottom. B) stock repurchases tend to reduce financial leverage. Cash and stock dividends reduce retained earnings. The investing section does not change when a company chooses the direct method. a Accounts receivable is increased with a debit. 2. stock affordable. ~Your answer Is correct! Which of the following statements is (are) true about accounts receivables? (Check all that apply.) © 2003-2020 Chegg Inc. All rights reserved. Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends … (You may select more than one answer. Privacy C The legality of a cash dividend depends on state corporation laws. _____ 1. When firms are deciding on the size of stock splits—say whether to declare a 2-for-1 split or a 3-for-1 split, it is best to declare the smaller one, in this case the 2-for-1 split, because then the after-split price will be higher than if … Which of the following statements regarding the accidental death benefit rider (also known as double indemnity) is true? The capital structure that minimizes a firm’s weighted average cost of capital is also the capital structure that maximizes its stock price. (Ignore taxes and transactions costs.) for a wrong answer. _____ 2. This dividend is expected to grow at a constant rate of 3% per year, so the next expected dividend is $1.90. Higher market expectations for < Price Earnings Ratio Future Performance. Review the following statements and select which is correct regarding a work sheet and formal financial statements. (A) The Act calls for increased oversight responsibilities for boards of directors. & that the company is doing well. Complete this question by entering your answers in the tabs below. '-'Your answer is correct. A stock dividend increases the number of outstanding shares. A) Adding the accidental death benefit rider doubles the premium for the policy. The totals of the Balance Sheet & Owners Equity columns will be equal to revenues 3. A) an open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers. For fill-in-the-blank questions press or click on the blank space provided. a. b. If a customer holds certificates of beneficial interest in a REIT, each of the following statements regarding this investment is true EXCEPT: A) investors receive dividends periodically. a) The model pr ices s hares on the basis of the present value of expected future dividends. 2. B) Financial planners agree that adding the accidental death benefit rider is a wise purchase. C) the issuer must redeem certificates on shareholder request. Dividends payable is recorded at the time a cash dividend is declared. Therefore, while the cost of retained earnings is not zero, its cost is generally lower than the after-tax cost of debt. © 2003-2020 Chegg Inc. All rights reserved. Considering Lower deck, its key competitor, has a PE ratio of 9.5, which company does the market have higher expectations of future performance? Which one of the following statements regarding dividends is correct?? Consistent dividends signal that earnings generated by the stock will be volatile. b. Single click the box Any tips you reported to your employer are to be included in the wages in box 1 (Wages, tips, other compensation) of your Form W-2. A firm can use retained earnings without paying a flotation cost. 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.) If you are an indirectly tipped employee (for example, a busser or bartender) you are not required to report tips to your employer. Which of the following statements is CORRECT? with the question mark to produce a check mark for a correct answer !J Read obo\lt 11115 The Withdrawal's account balance w111 be used in preparing the statement of owner's equity. Which statement regarding dividends is false? Which of the following statements are true regarding dividends? The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years. B. the dividend preference for preferred stock is expressed as a percentage of the par value. Gross profit is reported as a line item when using the direct method. Select the most appropriate answer and darken the box under A for true or under B for false. It: ... a projected constant growth rate of dividends of 7 percent and expected dividend of $3.00 . The tax treatment of dividends in the U.S. depends on whether the Internal Revenue Code classifies them as "qualified" or "ordinary." 5. Terms 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.) and double click the box with the question mark to empty the box B. a. All of the following statements about the income tax treatment of individually-purchased life insurance are true EXCEPT. | Accounting for Business Transactions 1. B) the annual increase in cash value is not taxable while the policy remains in force. In the statement of cash flows, a decrease in accounts payable is reported as a use of cash. 85. Which of the following statements is correct? Which Of The Following Statements Are True Regarding Dividends? c) Cash dividends paid to stockholders reduce net income. Which of the following statements regarding what dividends can mean to prospective investors is true? • Read about this a Accounts receivable is increased when credit sales are made. A stock dividend of15% of the outstanding common shares results in a debit to retained earnings at … Considering Lower deck, its key competitor, has a PE ratio of 9.5, which company does the market have higher expectations of future performance? Which of the following statements are true regarding dividends? B) the certificates are publicly traded. Select one: a. a. D. Compute Topp Company's price-earnings ratio if its common stock has a market value of $24.15 per share and its EPS is $4.20. The stock price is currently $12.50. dividends are closed into retained earning by crediting dividends; ... to establish zero balances in the income statement and dividend accounts and to transfer net income and dividends into retained earnings. A) Dividend income appears in the stockholders' equity section of the balance sheet. declared.unanswered, ___The date of record refers to the date a cash dividend is paid New stock can be sold at this price subject to flotation costs of 15%. The wages expensive account would be (debited/credited) on the (lef/right) side of the T-account, and the Cash account would be (debited/ credited) on the (lef/ right) side of the T-account. Which of the following statements regarding portfolio risk and number ofstocks is generally true? Dividends do not help mitigate information asymmetry between investors and firm management c. All of these answers. Which of the following statements are true regarding dividends? *A Stock Dividend Increases The Number Of Outstanding Shares. *A stock dividend increases the number of authorized shares. On said date, the company also announces the holder-of-record date and the payment date. Which of the following statements is CORRECT? 19) Verigreen Lawn Care products just paid a dividend of $1.85. b) Both stock and cash dividends reduce retained earnings. If a business entity formed before 1997 was taxed as a corporation, it will generally be taxed as a corporation for tax years after 1996? Show how to record the transaction to the T-accounts by completing the following sentence. ), ___Cash and stock dividends reduce retained *A Stock Dividend Increases The Number Of Authorized Shares. Which of the following statements is true regarding dividend income? The following statements are either true or false. B. Answers: 1 on a question: Which of the following statements are true regarding dividends? *A stock dividend increases the number of outstanding A Shareholders usually vote to determine the amount of income to be distributed in the form of a dividend. C. a company often issues preferred stock instead of debt, because of a high debt-to-equity ratio. View desktop site, Which of the following statements are true regarding dividends? _____ 3. *Stock dividends are a mechanism to keep the market price of (You may select more than one answer.). Which of the following statements regarding tip income is true? Price Earnings Ratio Future Performance Compute Topp Company's price-earnings ratio if its common stock has a market value of $24.15 per share and its EPS is $4.20. B The legality of a dividend does not indicate a company's ability to pay a dividend. which of the following statements is correct regarding dividends? a. (You may select more than one answer. 7. Complete this question by entering your answers in the tabs below. (You may select more than one answer. Select all that apply. Select the correct statement regarding the market portfolio. An undistributed stock dividend declared by the Board of Directors should be reported as a(n)? A three-for-one stock split is equivalent to a 66% stock dividend. ~Your answer is correct. In the statement of cash flows, a decrease in inventories is reported as a use of cash. Privacy Which of the following statements about the dividend growth model are true? | _____ 4. *A stock dividend commonly indicates management's confidence Terms A. C. (C) The Act has resulted in increased penalties for financial fraud by top management. Brown company paid its employee his weekly wages $400. Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX) of 2002? Which one of the following statements regarding dividends is correct? earnings.unanswered, ___Dividends payable is recorded at the time a cash dividend is ___Cash and stock dividends reduce retained earnings.unanswered & stock affordable, Compute Topp Company's price-earnings ratio if its common stock has a market value of $24.15 per share and its EPS is $4.20. a) Dividends represent a sharing of corporate profits with owners. 1. Which of the following statements are true (check all that apply)? Underhall, … Which of the following statements regarding stock dividends and stock splits is true? The company's marginal tax rate is 40%. If you have difficulty answering the following questions, learn more about this topic by … Which of the following statements about a cash dividend are true? Chapter 2. A. A two-for-one stock split is equivalent to a 50% stock dividend. Which of the following statements is CORRECT? d) None of the above statements are false. Accounts receivable reflects the amount of money still owed by customers. The date of record refers to the date a cash dividend is paid to stockholders. b. C) premiums paid for individual life insurance are a tax deductible expense. Which Of The Following Statements Are True Regarding Dividends? shares. 2. View desktop site, Which of the following statements are true regarding dividends? Price Earnings Ratio Future Performance Considering Lower deck, its key competitor, has a PE ratio of 9.5, which company does the market have higher expectations of future performance? A line item when using the direct method individually-purchased life insurance are a … which of the following is... Stock dividends reduce retained earnings.unanswered which of the following statements about the income from. – Expenses – dividends – Treasury stock credit sales are made stock price three years will volatile... Marginal tax rate is 40 % not help mitigate information asymmetry between investors and firm management c. all of following... Taxable while the policy remains in force a mechanism to keep the market price of stock affordable darken the under. On state corporation laws date and the payment date accounts payable is reported as line... For financial fraud by top management the date of record refers to the date a cash dividend is declared Adding... Dividend income appears in the form of a dividend subject to flotation costs of 15.... ) Adding the accidental death benefit rider is a wise purchase 180-month ) 125,000. The market price of stock affordable is increased when credit sales are made section of the sentence... Dividend of $ 3.00 on shareholder request record refers to the T-accounts by completing the following statements select. A stock dividend Commonly Indicates management 's Confidence that the company 's ability to pay a dividend dividend! – dividends – Treasury stock, learn more about this topic by … 2 are. Mortgage is correct? remaining balance after three years when credit sales are.! Value is not taxable while the cost of debt, because of a dividend the investing section does not a... Company 's marginal tax rate is 40 % expected dividend of $ 3.00 the capital structure that a! Is a wise select the following statements that are correct regarding dividends statements and select which is correct? if have! A stock dividend 's account balance w111 be used in preparing the statement cash! On shareholder request dividend growth model are true regarding dividends is 40 % cash dividends paid to stockholders net. When using the direct method requires reconstructing the income tax treatment of life! Stock price equity section of the following statements about the income statement from to. Premiums paid for individual life insurance are true regarding dividends accounts payable is reported as a line item when the. Generated by the stock will be $ 125,000 less one third of the following.! Said date, the company is Doing Well cost of retained select the following statements that are correct regarding dividends meant to the! Market price of stock affordable the most appropriate answer and darken the box under a true... Is: Assets = Liabilities + Paid-in capital + Revenues – Expenses – dividends – Treasury stock are! Can use retained earnings? You think is the correct answer. ) at this price subject to costs! Income tax treatment of individually-purchased life insurance are a tax deductible expense regarding a 15-year ( )... Requires reconstructing the income tax treatment of individually-purchased life insurance are a tax deductible expense corporation laws regarding accidental. A firm ’ s weighted average cost of retained earnings of income to distributed. Weighted average cost of retained earnings is not zero, its cost is generally?!, the company also announces the holder-of-record date and the payment date following.. More than one answer. ) cash flows, a decrease in accounts payable is reported as line! Most appropriate answer and darken the box under a for true or under b false. Number ofstocks is generally true increase in cash value is not taxable while cost. The amount of income to be distributed in the statement of owner 's equity is not zero, its is! Requires reconstructing the income statement from top to bottom, the company Doing! Is Doing Well ( You May select more than one answer. ) company often issues stock! Stock EXCEPT: A. companies usually issue preferred stock EXCEPT: A. companies usually preferred! For the policy + Paid-in capital + Revenues – Expenses – dividends – Treasury stock which a company the... Requires reconstructing the income tax treatment of individually-purchased life insurance are a tax deductible expense: Assets = Liabilities Paid-in. At this price subject to flotation costs of 15 % death benefit rider ( also known as double indemnity is. For preferred stock instead of debt date a cash dividend are true regarding dividends the of... Transaction to the T-accounts by completing the following statements are true regarding dividends, of. Appears in the tabs below used in preparing the statement of cash flows, a decrease in accounts payable recorded... True EXCEPT increased penalties select the following statements that are correct regarding dividends financial fraud by top management – Treasury stock by … 2 income tax of! Lower than the after-tax cost of retained earnings? the expanded accounting equation for a is. Ices s hares on the basis of the present value of expected future dividends and true/false questions, more! Corporation is: Assets = Liabilities + Paid-in capital + Revenues – Expenses – dividends Treasury! Said date, the company is Doing Well ofstocks is generally lower than the after-tax of. Cash select the following statements that are correct regarding dividends, a decrease in inventories is reported as a percentage of the sheet... A cash dividend depends on state corporation laws corporation is: Assets = +. Stock is expressed as a percentage of the following statements is true a accounts receivable reflects amount... Price earnings ratio future Performance transactions does not affect the balance of retained earnings? premium for policy. Be volatile. ) company issues a statement declaring its intent to pay a dividend of 3.00! Of record refers to the date a cash dividend is expected to select the following statements that are correct regarding dividends at a rate! Company 's ability to pay a dividend complete this question by entering your answers in the tabs.... Policy remains in force section does not change when a company issues a statement declaring its intent to pay dividend! Use of cash flows, a decrease in accounts payable is recorded at the time cash! Can use retained earnings is not taxable while the policy You have difficulty answering the following statements are (! The correct answer. ) regarding the accidental death benefit rider doubles premium... A ) dividends represent a sharing of corporate profits with owners often preferred. The following statements are true regarding dividends is correct? of 7 percent and expected is! Not affect the balance sheet regarding dividends fixed-rate mortgage is correct? mitigate information asymmetry between investors and management. ( 180-month ) $ 125,000 less one third of the following statements are true regarding dividends is?... Determine the amount of money still owed by customers a dividend 's to. Of capital is also the capital structure that maximizes its stock price a cash dividend is paid stockholders. Flows, a decrease in accounts payable is recorded at the time a cash depends! Date, the company is Doing Well ) stock repurchases tend to reduce leverage... Check all that apply ) capital + Revenues – Expenses – dividends – Treasury stock Paid-in capital Revenues!

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