138.If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is
a.Common Stock Dividends Distributable.
b.Common Stock.
c.Paid-in Capital in Excess of Par.
d.Retained Earnings.
139.Which one of the following events would
not
require a formal journal entry on a corporation's books?
a.2 for 1 stock split
b.100% stock dividend
c.2% stock dividend
d.$1 per share cash dividend
Stock SplitsStock Dividends
a.IncreaseNo change
b.No changeDecrease
c.DecreaseDecrease
d.No changeNo change
141.Dividends are predominantly paid in
a.earnings.
b.property.
c.cash.
d.stock.
142.If a stockholder receives a dividend that reduces retained earnings by the fair market value of the stock, the stockholder has received a
a.large stock dividend.
b.cash dividend.
c.contingent dividend.
d.small stock dividend.
143.Of the various dividends types, the two most common types in practice are
a.cash and large stock.
b.cash and property.
c.cash and small stock.
d.property and small stock.
144.Regular dividends are declared out of
a.Paid-in Capital in Excess of Par Value.
b.Treasury Stock.
c.Common Stock.
d.Retained Earnings.
145.A corporation is not committed to a legal obligation when it declares
a.a cash dividend.
b.either a cash dividend or a stock dividend.
c.a stock dividend.
d.a distribution date.
146.Which of the following is
not
a significant date with respect to dividends?
a.The declaration date
b.The incorporation date
c.The record date
d.The payment date
147.On the dividend record date,
a.a dividend becomes a current obligation.
b.no entry is required.
c.an entry may be required if it is a stock dividend.
d.Dividends Payable is debited.