Chapter 13, Problem 8QS

Accounting for dividends

For each of the following statements regarding dividends, indicate whether it is true or false.

____ 1.	Cash and stock dividends reduce retained earnings.
____ 2.	Dividends payable is recorded at the time a cash dividend is declared.
____ 3.	The date of record refers to the date a cash dividend is paid to stockholders.
____ 4.	Stock dividends are a mechanism to keep the market price of stock affordable.