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

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