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- Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.The distribution of a dividend that represents a partial return of the original investment made by the shareholders is known as a. participating dividend. b. liquidating dividend. c. property dividend.The type of dividend that does not affect total assets and total shareholders' equity is a. share capital dividendb. property dividendc. cash dividendd. scrip dividend
- Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders. a. True b. False17. Dividends are recognized in profit or loss only when: a. The amount of the divident can be measured reliably b. The entity's right to receive payment of the dividend is established c. It is probable that the economic benefits associated with the dividend will flow to the entity. d. All of theseIs Share Dividends qualify as Revenue?
- Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends payable in noncash asset should be charged to accumulated profits at fair value of the noncash asset a. Statement I and II are trueb. Statement I and II are falsec. Statement I is true, Statement II is falsed. Statement I is false, Statement II is true2. Which of the following is a share of owners in a corporation? B. capital gain A. bond C. dividend D. stockTransaction costs incurred by the corporation relating to issue of shares may not be a. Charged against the related share premium b. Charged to an expense account c. Written off directly against share capital d. Taken to profit or loss