Identify the effect the declaration of a stock dividend has on total share capital, retained earnings, and shareholders' equity. O O Total Share Capital Retained Earnings no effect increase decrease increase increase decrease decrease decrease Shareholders' Equity increase decrease no effect no effect
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- Which of the following measures the portion of a corporations profit allocated to each outstanding share of common stock? A. retained earnings B. EPS C. EBITDA D. NOPATThe declaration of a stock dividend will Select one: O increase total liabilities. O change total shareholderst equity. O increase share capital Oincrease total assetsHow would the share dividends distributable account balance be presented on the statement of financial position? * a. as part of current liabilities b. as addition to share capital c. as addition to retained earnings d. as addition to additional paid in capital
- Share dividends distributed shall be reported as a note to financial statement a reduction in total shareholders' equity an addition to share capital outstanding a current liabilityWhich of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury sharesWhich of the following affects the total Shareholders’ Equity? Appropriation of retained earnings Declaration of a scrip dividend Declaration of share split Retirement of treasury shares
- Dividends in arrears on preference shares are reported in the financial statements as a (an) a. liabilityb. reduction from Retained Earningsc. reduction from Retained Earningsd. expenseIndicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Capital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of treasury stock below costShare capitalization referes to the issue of shares to new shareholders in lieu of dividend. OA. True OB. False
- Which of the following balance sheet accounts will be affected by a stock dividend but not by a stock split? A. Common stock B. Dividends-in-arrears C. Cash D. Retained earningsWhich of the following show the proper effect of a stock split and a stock dividend? Stock Dividend Item O total shareholders' equity O total retained earnings O total share capital total assets Stock Split no change decrease no change increase increase decrease increase decreaseIndicate the effect of each of the following transactions on total equity by selecting the appropriate column Increase Decrease No Effect Operating loss for the period Declaration of a share dividend Acquisition of machinery for ordinary shares Conversion of bonds payable into ordinary Declaration of cash dividend Payment of cash dividend Stock Split Appropriation of retained earnings