146.Ephram Company has 3,000 shares of 6%, $100 par non-cumulative preference shares outstanding at December 31, 2014. No dividends have been paid on these shares for 2013 or 2014. Dividends in arrears at December 31, 2014 total
a.$0.
b.$1,800.
c.$18,000.
d.$36,000.
147.Each of the following decreases retained earnings
except
a
a.cash dividend.
b.liquidating dividend.
c.share dividend.
d.All of these decrease retained earnings.
148.Each of the following decreases total equity
except
a
a.cash dividend.
b.liquidating dividend.
c.share dividend.
d.All of these decrease total equity.
149.Which one of the following is
not
necessary in order for a corporation to pay a cash dividend?
a.Adequate cash
b.Approval of shareholders
c.Declaration of dividends by the board of directors
d.Retained earnings
150.If a corporation declares a dividend out of share capital or share premium, it is known as a
a.scrip dividend.
b.property dividend.
c.paid dividend.
d.liquidating dividend.
151.The date on which a cash dividend becomes a binding legal obligation is on the
a.declaration date.
b.date of record.
c.payment date.
d.last day of the fiscal year-end.
152.The effect of the declaration of a cash dividend by the board of directors is to
Increase Decrease
a.EquityAssets
b.AssetsLiabilities
c.LiabilitiesEquity
d.LiabilitiesAssets
153.The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to
a.decrease total liabilities and equity.
b.increase total expenses and total liabilities.
c.increase total assets and equity.
d.decrease total assets and equity.
154.Ordinary Share Dividends Distributable is classified as a(n)
a.asset account.
b.equity account.
c.expense account.
d.liability account.
155.The effect of a share dividend is to
a.decrease total assets and equity.
b.change the composition of equity.
c.decrease total assets and total liabilities.
d.increase the par value per share.