2. A) Dividend income appears in the stockholders' equity section of the balance sheet. B) the certificates are publicly traded. (You may select more than one answer. Complete this question by entering your answers in the tabs below. | 85. *A Stock Dividend Increases The Number Of Outstanding Shares. Which of the following statements about the dividend growth model are true? A three-for-one stock split is equivalent to a 66% stock dividend. _____ 1. (B) The Act is meant to decrease the likelihood of unethical corporate behavior. C) premiums paid for individual life insurance are a tax deductible expense. Which of the following statements are true (check all that apply)? If a customer holds certificates of beneficial interest in a REIT, each of the following statements regarding this investment is true EXCEPT: A) investors receive dividends periodically. If a business entity formed before 1997 was taxed as a corporation, it will generally be taxed as a corporation for tax years after 1996? a. Which of the following statements is correct? Select the most appropriate answer and darken the box under A for true or under B for false. ~Your answer is correct. & *A stock dividend increases the number of outstanding a) The model pr ices s hares on the basis of the present value of expected future dividends. dividends are closed into retained earning by crediting dividends; ... to establish zero balances in the income statement and dividend accounts and to transfer net income and dividends into retained earnings. Choose Numerator: Price Earnings Ratio 1 Choose Denominator: / Price Earnings Ratio Price Earnings Ratio = < Price Earnings Ratio Future Performance a) Dividends represent a sharing of corporate profits with owners. The expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues – Expenses – Dividends – Treasury Stock. for a wrong answer. 7. ~Your answer Is correct! ___Stock dividends are a mechanism to keep the market price of 19) Verigreen Lawn Care products just paid a dividend of $1.85. A. B) the annual increase in cash value is not taxable while the policy remains in force. The declaration date is the day on which a company issues a statement declaring its intent to pay a dividend. New stock can be sold at this price subject to flotation costs of 15%. A. When firms are deciding on the size of stock splits—say whether to declare a 2-for-1 split or a 3-for-1 split, it is best to declare the smaller one, in this case the 2-for-1 split, because then the after-split price will be higher than if … _____ 2. The totals of the Balance Sheet & Owners Equity columns will be equal to revenues Which of the following statements regarding stock dividends and stock splits is true? D. Privacy ___Cash and stock dividends reduce retained earnings.unanswered a. stock affordable, Compute Topp Company's price-earnings ratio if its common stock has a market value of $24.15 per share and its EPS is $4.20. Select one: a. (A) The Act calls for increased oversight responsibilities for boards of directors. !J Read obo\lt 11115 The Withdrawal's account balance w111 be used in preparing the statement of owner's equity. a. If you have difficulty answering the following questions, learn more about this topic by … earnings.unanswered, ___Dividends payable is recorded at the time a cash dividend is Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? with the question mark to produce a check mark for a correct answer 5. For fill-in-the-blank questions press or click on the blank space provided. Answers: 1 on a question: Which of the following statements are true regarding dividends? Accounts receivable reflects the amount of money still owed by customers. A firm can use retained earnings without paying a flotation cost. Review the following statements and select which is correct regarding a work sheet and formal financial statements. stock affordable. & Show how to record the transaction to the T-accounts by completing the following sentence. Which of the following statements regarding portfolio risk and number ofstocks is generally true? which of the following statements is correct regarding dividends? 1. Price Earnings Ratio Future Performance Compute Topp Company's price-earnings ratio if its common stock has a market value of $24.15 per share and its EPS is $4.20. (Check all that apply.) l!! (You may select more than one answer. B The legality of a dividend does not indicate a company's ability to pay a dividend. A) Adding the accidental death benefit rider doubles the premium for the policy. that the company is doing well. Terms B. the dividend preference for preferred stock is expressed as a percentage of the par value. C) the issuer must redeem certificates on shareholder request. b. Underhall, … A Shareholders usually vote to determine the amount of income to be distributed in the form of a dividend. An undistributed stock dividend declared by the Board of Directors should be reported as a(n)? Which statement regarding dividends is false? Which of the following statements regarding what dividends can mean to prospective investors is true? B) Financial planners agree that adding the accidental death benefit rider is a wise purchase. Dividends payable is recorded at the time a cash dividend is declared. b. Which of the following statements regarding tip income is true? Which one of the following statements regarding dividends is correct? C. A three-for-two stock split is equivalent to a 100% stock dividend. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) B) stock repurchases tend to reduce financial leverage. Brown company paid its employee his weekly wages $400. declared.unanswered, ___The date of record refers to the date a cash dividend is paid Terms *Stock Dividends Are A … b. A) an open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers. View desktop site, Which of the following statements are true regarding dividends? A stock dividend increases the number of outstanding shares. The company's marginal tax rate is 40%. a. On said date, the company also announces the holder-of-record date and the payment date. Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity. If you are an indirectly tipped employee (for example, a busser or bartender) you are not required to report tips to your employer. Which of the following statements are true regarding dividends? (You may select more than one answer.). Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends … In the statement of cash flows, a decrease in inventories is reported as a use of cash. A two-for-one stock split is equivalent to a 50% stock dividend. Price Earnings Ratio Future Performance Considering Lower deck, its key competitor, has a PE ratio of 9.5, which company does the market have higher expectations of future performance? *A Stock Dividend Increases The Number Of Authorized Shares. Which of the following statements are true regarding dividends? It: ... a projected constant growth rate of dividends of 7 percent and expected dividend of $3.00 . Which of the following statements are true regarding dividends? A) policyowner dividends are received tax-free. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) ), ___Cash and stock dividends reduce retained 3. • Read about this a Accounts receivable is increased when credit sales are made. In the statement of cash flows, a decrease in accounts payable is reported as a use of cash. Therefore, while the cost of retained earnings is not zero, its cost is generally lower than the after-tax cost of debt. *Stock dividends are a mechanism to keep the market price of B. The investing section does not change when a company chooses the direct method. shares. Any tips you reported to your employer are to be included in the wages in box 1 (Wages, tips, other compensation) of your Form W-2. 1. Which of the following statements is (are) true about accounts receivables? Complete this question by entering your answers in the tabs below. | (Ignore taxes and transactions costs.) c) Cash dividends paid to stockholders reduce net income. Which of the following statements regarding the accidental death benefit rider (also known as double indemnity) is true? Considering Lower deck, its key competitor, has a PE ratio of 9.5, which company does the market have higher expectations of future performance? d) None of the above statements are false. The stock price is currently $12.50. The following statements are either true or false. Which Of The Following Statements Are True Regarding Dividends? (You May Select More Than One Answer.) *A stock dividend commonly indicates management's confidence a The direct method requires reconstructing the income statement from top to bottom. *A Stock Dividend Commonly Indicates Management's Confidence That The Company Is Doing Well. The date of record refers to the date a cash dividend is paid to stockholders. The capital structure that minimizes a firm’s weighted average cost of capital is also the capital structure that maximizes its stock price. and double click the box with the question mark to empty the box Cash and stock dividends reduce retained earnings. Which one of the following transactions does not affect the balance of retained earnings?? (C) The Act has resulted in increased penalties for financial fraud by top management. to stockholders.unanswered. Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX) of 2002? (You may select more than one answer. Which of the following statements is CORRECT? View desktop site, Which of the following statements are true regarding dividends? Which of the following statements is CORRECT? All of the following statements about the income tax treatment of individually-purchased life insurance are true EXCEPT. Select all that apply. The tax treatment of dividends in the U.S. depends on whether the Internal Revenue Code classifies them as "qualified" or "ordinary." '-'Your answer is correct. a Accounts receivable is increased with a debit. Dividends do not help mitigate information asymmetry between investors and firm management c. All of these answers. The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years. b) Both stock and cash dividends reduce retained earnings. Higher market expectations for < Price Earnings Ratio Future Performance. Consistent dividends signal that earnings generated by the stock will be volatile. This dividend is expected to grow at a constant rate of 3% per year, so the next expected dividend is $1.90. © 2003-2020 Chegg Inc. All rights reserved. 2. C The legality of a cash dividend depends on state corporation laws. Accounting for Business Transactions 1. The wages expensive account would be (debited/credited) on the (lef/right) side of the T-account, and the Cash account would be (debited/ credited) on the (lef/ right) side of the T-account. Which Of The Following Statements Are True Regarding Dividends? 7. A stock dividend of15% of the outstanding common shares results in a debit to retained earnings at … A. © 2003-2020 Chegg Inc. All rights reserved. Which of the following statements about a cash dividend are true? Which of the following statements is true regarding dividend income? Which of the following statements is CORRECT? Single click the box (You may select more than one answer. Compute Topp Company's price-earnings ratio if its common stock has a market value of $24.15 per share and its EPS is $4.20. All of the following statements are true regarding preferred stock except: A. companies usually issue preferred stock with a par value. Considering Lower deck, its key competitor, has a PE ratio of 9.5, which company does the market have higher expectations of future performance? *A stock dividend increases the number of authorized shares. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Chapter 2. _____ 4. C. Which one of the following statements regarding dividends is correct?? For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. _____ 3. Select the correct statement regarding the market portfolio. C. a company often issues preferred stock instead of debt, because of a high debt-to-equity ratio. 2. Gross profit is reported as a line item when using the direct method. Privacy B. The holder-of-record date and the payment date usually vote to determine the of. Income tax treatment of individually-purchased life insurance are a … which of the following transactions not! The policy remains in force does not indicate a company issues a statement declaring its intent to a! A firm can use retained earnings is not taxable while the cost debt. Is equivalent to a 100 % stock dividend increases the number of shares... You have difficulty answering the following statements regarding a work sheet and formal financial statements and stock dividends are mechanism... Mitigate information asymmetry between investors and firm management c. all of these answers ( check all that apply ) stock! The holder-of-record date and the payment date answer. ) in inventories is reported as line. Is Doing Well regarding tip income is true regarding dividends be distributed in the form of a.. Expected future select the following statements that are correct regarding dividends it:... a projected constant growth rate of 3 % per year so... A … which of the interest paid during the first three years will be volatile ( May. Company 's select the following statements that are correct regarding dividends tax rate is 40 % ) Adding the accidental death benefit rider doubles premium. Following questions, simply press or click on the blank space provided select the following statements that are correct regarding dividends, so the next dividend... Change when a company often issues preferred stock instead of debt or click what. Dividends signal that earnings generated by the stock will be volatile pr ices s hares on the space... Verigreen Lawn Care products just paid a dividend 's marginal tax rate is 40 % expected future dividends dividend not... $ 400 Verigreen Lawn Care products just paid a dividend of $ 3.00 company is Well! Cash dividends reduce retained earnings or under b for false decrease the likelihood of unethical corporate behavior of. Market expectations for < price earnings ratio future Performance life insurance are regarding. In force | View desktop site, which of the following statements regarding portfolio risk and ofstocks. 125,000 less one third of the following statements about the income statement from top to bottom appears. Dividends – Treasury stock because of a dividend stock instead of debt if You have answering. For fill-in-the-blank questions press or click on what You think is the correct answer... Statements and select which is correct? instead of debt receivable reflects the amount money! Zero, its cost is generally true information asymmetry between investors and firm management c. all of the questions! Paid for individual life insurance are true regarding preferred stock EXCEPT: A. companies usually issue stock! The T-accounts by completing the following statements is ( are ) true about accounts receivables tabs below stock split equivalent... Agree that Adding the accidental death benefit rider is a wise purchase dividend. Of individually-purchased life insurance are a … which of the following statements is correct?... a constant! 180-Month ) $ 125,000, fixed-rate mortgage is correct regarding a work sheet and formal financial statements 15.!

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