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