11) Dividends ________.
A) are the distribution of profits
B) are expenses and cause shareholders’ equity to decrease
C) cause retained earnings to increase
D) cause common stock to decrease
12) Dividends ________.
A) cause retained earnings to decrease
B) are expenses and cause shareholders’ equity to decrease
C) cause retained earnings to increase
D) are expenses and cause shareholders’ equity to increase
13) Which of these comes first?
A) declaration date
B) date of record
C) payment date
D) liquidation date
14) Angelique’s Antiques declared and paid cash dividends of $25,000. There were 1,000 shares of 10%, $30 par value, noncumulative preferred stock outstanding. How much of the cash dividends were paid to
preferred
shareholders?
A) $0
B) $3,000
C) $22,000
D) $25,000
15) Angelique’s Antiques declared and paid cash dividends of $25,000. There were 1,000 shares of 10%, $30 par value, noncumulative preferred stock outstanding. How much of the cash dividends were paid to
common
shareholders?
A) $0
B) $1,500
C) $22,000
D) $25,000
16) Out of Africa, a multi-national corporation had a very successful year. The board of directors declared and paid a cash dividend of $50,000. The prior year, Out of Africa did not pay dividends on its 400 shares of cumulative, 8%, $100 par, preferred stock. How much of the cash dividend was paid to the
PREFERRED
shareholders?
A) $6,400
B) $3,200
C) $8,000
D) $4,000
17) Out of Africa, a multi-national corporation had a very successful year. The board of directors declared and paid a cash dividend of $50,000. The prior year, Out of Africa did not pay dividends on its 400 shares of cumulative, 8%, $100 par, preferred stock. How much of the cash dividend was paid to the
COMMON
shareholders?
A) $50,000
B) $49,992
C) $46,800
D) $43,600
18) Trading Places, a multi-national corporation, had a very successful year. The board of directors declared and paid a cash dividend of $50,000. The prior year, Trading Places did not pay dividends on its 400 shares of noncumulative, 8%, $100 par, preferred stock. How much of the cash dividend was paid to the
PREFERRED
shareholders?
A) $6,400
B) $3,200
C) $8,000
D) $4,000
19) Trading Places, a multi-national corporation, had a very successful year. The board of directors declared and paid a cash dividend of $50,000. The prior year, Trading Places did not pay dividends on its 400 shares of noncumulative, 8%, $100 par, preferred stock. How much of the cash dividend was paid to the
COMMON
shareholders?
A) $46,800
B) $0
C) $43,600
D) $50,000
20) Team Shirts declared and paid cash dividends of $40,000. There were 1,000 shares of 6%, $10 par value, noncumulative preferred stock outstanding. How much of the cash dividends were paid to
preferred
shareholders?
A) $40,000
B) $2,400
C) $600
D) $0