Ans T LO 3 Bloom K Difficulty Easy Min 1 AACSB None AICPA BB LegalRegulatory

Ans t lo 3 bloom k difficulty easy min 1 aacsb none

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Ans: T, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Business Economics25.Preferred stockholders generally do not have the right to vote for the board of directors.
Ans: T, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: None, AICPA PC: None, IMA:Business Economics26.When preferred stock is cumulative, preferred dividends not declared in a given periodare called dividends in arrears.Ans: T, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting27.Dividends may be declared and paid in cash or stock.Ans: T, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting28.Cash dividends are not a liability of the corporation until they are declared by the boardof directors.Ans: T, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting29.The amount of a cash dividend liability is recorded on the date of record because it is onthat date that the persons or entities who will receive the dividend are identified.Ans: F, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting30.A 10% stock dividend will increase the number of shares outstanding but the book valueper share will decrease.Ans: T, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting31.A stock dividend does not affect the total amount of stockholders’ equity.Ans: T, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting32.A stock split results in a transfer at market value from retained earnings to paid-incapital.Ans: F, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC: None,IMA: FSA33.A 3-for-1 common stock split will increase total stockholders’ equity but reduce the par orstated value per share of common stock.Ans: F, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting34.Retained earnings represents the amount of cash available for dividends.Ans: F, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC: None,IMA: Business Economics35.Dividends in arrears are liabilities of the corporation.Ans: F, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting36.Net income of a corporation should be closed to retained earnings and net losses shouldbe closed to paid-in capital accounts.

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