Each of the following decreases totalstockholders' equity except acash dividend.liquidating dividend.stock dividend.All of these decrease total stockholders'equity.

Dividend is the part or share of profits that is being paid or distributed to the shareholders of…

Answered: Each of the following decreases total…

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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Which of the following dividends does not reduce total stockholders' equity? O Liquidating dividends. O Cash dividends. O Stock dividends. O All of these answer choices reduce total stockholders' equity.
True or False: Dividends declared and paid result in a decrease to the common stock's account balance. Select one: True False
When a dividend is declared and paid in stock * Choices; stockholders' equity does not change. total stockholders' equity decreases. the current ratio increases. the amount of working capital decreases.
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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
Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity. cause a decrease in stockholders' equity. have no effect on total stockholders' equity. cause an increase in the dividends payable account.
When a stock dividend is declared and issued: Multiple Cholce total stockholders' equity does not change. total paid-in capital does not change. retained earnings is normally decreased by the par value of the shares issued in the dividend. total pald-in capital is decreased by the market value of the shares issued in the dividend.
When a stock dividend is declared and issued: Multiple Choice total stockholders' equity does not change. total paid-in capital does not change. retained earnings is normally decreased by the par value of the shares issued in the dividend. total paid-in capital is decreased by the market value of the shares issued in the dividend.
Cash dividends, property dividends, and scrip dividends are examples of dividends that Select one: O a. have no effect on total shareholders' equity but decrease retained earnings and increase contributed capital O b. have no effect on any element of shareholders' equity O c. decrease total shareholders' equity by decreasing retained earnings O d. decrease total shareholders' equity by decreasing contributed capital
Stock splits and stock dividends have the following effects on Total Stockholders' Equity: Select one: a. Stock Splits DECREASE | Stock Dividends DECREASE b. Stock Splits INCREASE | Stock Dividends NO CHANGE c. Stock Splits NO CHANGE | Stock Dividends DECREASE d. Stock Splits NO CHANGE | Stock Dividends NO CHANGE
All of the following is true about a Stock dividend except, Select one: a. The stock price declines proportionally after the dividend is paid b. The pre-dividend price is higher than the post-dividend price c. It is commonly expressed as a percentage d. The number of outstanding shares will decrease after a stock dividend.
Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders’ equity? a. Preferred dividends are not paid from net income. b. Preferred dividends are not a part of stockholders’ equity. c. Preferred dividends are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation. d. Preferred dividends will reduce the amount of income available for distribution to common stockholders.

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Each of the following decreases total stockholders' equity except a cash dividend. liquidating dividend. stock dividend. All of these decrease total stockholders' equity.