1. Which of the following correctly reflects the effect of dividend? On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect 2. Which of the following illustrates the effect of 15% share dividend declared and issued when the market price is higher than the par value? RETAINED EARNINGS - Increase, SHARE PREMIUM - Decrease, TOTAL EQUITY - Increase RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - No effect RETAINED EARNINGS - Increase, SHARE PREMIUM - Increase, TOTAL EQUITY - Increase RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - Decrease 3. Which of the following liquidating dividend is not legal? Liquidating dividend of a mining corporation Liquidating dividend of a corporation at the state of bankruptcy Liquidating dividend of a continuing merchandising corporation Liquidating dividend of a wasting asset corporation
1. Which of the following correctly reflects the effect of dividend?
On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease
On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease
On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease
On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect
2. Which of the following illustrates the effect of 15% share dividend declared and issued when the market price is higher than the par value?
RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - No effect
RETAINED EARNINGS - Increase, SHARE PREMIUM - Increase, TOTAL EQUITY - Increase
RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - Decrease
3. Which of the following liquidating dividend is not legal?
Liquidating dividend of a mining corporation
Liquidating dividend of a corporation at the state of bankruptcy
Liquidating dividend of a continuing merchandising corporation
Liquidating dividend of a wasting asset corporation
4. Which of the following is entitled to dividends?
Total outstanding liability
Total authorized shares
Total shares issued
Total shares issued, net of treasury shares
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