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(b) increase the marketability of the stock by increasing the price.(c) increase the marketability of the stock by decreasing the price.(d) reduce the number of issued shares.7
92. Cash dividends are declared out of93. Which of the following is nota significant date with respect to dividends?94. On the dividend record date95. Which of the following statements regarding the date of a cash dividend declaration is nottrue?(a) The dividend can be cancelled once it has been declared.(b) The corporation is committed to a legal, binding obligation.(c) The board of directors formally authorizes the cash dividend.(d) A liability account must be created or increased.96. Indicate the respective effects of the declaration of a cash dividend on the following statement of financial position sections:Total AssetsTotal LiabilitiesTotal Shareholders' Equity(a)IncreaseDecreaseNo change(b)No changeIncreaseDecrease(c)DecreaseIncreaseDecrease(d)DecreaseNo changeIncrease97. Which of the following statements about dividends is notcorrect?
98. The declaration and distribution of a stock dividend will99. JKL Inc. has 10,000, $2, noncumulative preferred shares and 150,000 common shares issued.What is the total annual dividend on the preferred shares?100. At December 31, 2015, Gem Garments Inc. has 10,000, $5, cumulative preferred sharesissued. If the board of directors declares a $40,000 dividend at this date(a) the company will still owe the preferred shareholders $10,000 and should record a dividendpayable for this amount.(b) the company will owe the preferred shareholders nothing further.(c) $10,000 will be disclosed as dividends in arrears in the notes to the financial statements.(d) the company still has to pay the preferred shareholders $50,000, regardless of what amountwas declared.101. Coombs Corp. declared a two-for-one stock split. Solly Fogarty owned 500 shares ofCoombs that were trading for $20 each before the split. Which of the following is likely to betrue after the split?