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