TRUE OR FALSE? 1. "Dividend in arrears" is a term that applies to cumulative preference shares.
TRUE OR FALSE?
1. "Dividend in arrears" is a term that applies to cumulative preference shares.
2. A share capital dividend decreases
3. A share capital dividend does not change total shareholders' equity.
4. Book value per share is the amount earned for every capital share owned by a shareholder.
5. Appropriation of retained earnings is necessary when the corporation reacquires its own share capital.
6. The liquidation value of a
7. Property dividends should be recorded at the fair value of the assets to be distributed.
8. Earnings per share is computed for both preference and ordinary shares.
9. On a corporation's
11. A deficit (or debit balance) in Retained Earnings means that Retained Earnings appears in the asset section of the statement of financial position.
12. A share capital dividend that has been declared but not yet distributed should be reported as a current liability
13. The balance of the Income Summary account is transferred to the Retained Earnings account.
14. Unappropriated retained earnings represent the amount of cash available for dividend distribution.
15. The accounting cycle of a corporation is very much different from the accounting cycle of a
16. An appropriation of retained earnings reduces the total amount of retained earnings
17. Dividends may be declared even if a corporation has a deficit.
18. Book value per share capital is a measurement of the amount of income earned for each share of stock.
19. A cumulative preference share capital is entitled to payment of dividends in arrears.
20. When a portion of shareholders' original investment is returned in the form of a dividend, it is called a (an)
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