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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders’ equity under each of the following methods?
a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24
i) Central to the previous calculations of company valuations are the payment of dividends. The following terms relating to dividend payment chronology. Define each term in a single sentence • Ex-dividend date• Record date • Declaration date• Payment date • Cum-dividend period ii) Give two reasons why a company my distribute cash to shareholders via a buyback rather than a dividend
The declaration of a stock dividend will * increase paid-in capital. change the total of stockholders' equity. increase total liabilities. increase total assets.
b. Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
Contrast the effects of a (a) cash dividend, (b) stock dividend, and (c) stock split on a company's (1) assets, (2) liabilities, (3) share capital, (4) retained earnings, (5) total shareholders' equity, and (6) number of shares. (a) Cash dividend (b) Stock dividend (c) Stock split (1) Assets Decrease Increase No effect (2) Liabilities (3) Share capital (4) Retained earnings (5) Total shareholders' equity (6) Number of shares
What is the impact of treasury stock on the presentation of stockholder’s equity? Treasury stock is added to paid-in capital, subtracted from common stock, and added to retained earnings. Treasury stock is subtracted from paid-in capital, common stock, and retained earnings thereby reducing stockholder’s equity. Treasury stock is subtracted from paid-in capital, added to common stock, and retained earnings. Treasury stock is added to paid-in capital, common stock, and retained earnings thereby increasing stockholder’s equity. Stockholders’ equity can increase due to: Inventory is increased. Retained Earnings decrease. Dividends are distributed. Stock is issued and common stock is increased. The Cash Dividends Payable account incurs a liability when: On the record date. On the last day of the period. On the payment date. On the declaration date. provide the correc answer and explain what ciorrect choices
The price-earnings ratio on common stock is calculated as a.market price per share of common stock, divided by earnings per share on common stock b.market price per share of common stock, divided by dividends per share of common stock c.earnings per share of common stock, divided by market price per share of common stock d.dividends per share of common stock, divided by earnings per share on common stock

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS