176.Corporations generally issue share dividends in order to
a.increase the market price per share.
b.exceed shareholders' dividend expectations.
c.increase the marketability of the shares.
d.decrease the amount of capital in the corporation.
177.A shareholder who receives a share dividend would
a.expect the market price per share to increase.
b.own more shares.
c.expect retained earnings to increase.
d.expect the par value of the shares to change.
178.When share dividends are distributed,
a.Ordinary Share Dividends Distributable is decreased.
b.Retained Earnings is decreased.
c.Share Premium-Ordinary is debited if it is a small share dividend.
d.no entry is necessary if it is a large share dividend.
179.A small share dividend is defined as
a.less than 30% but greater than 25% of the corporation's issued shares.
b.between 50% and 100% of the corporation's issued shares.
c.more than 30% of the corporation's issued shares.
d.less than 20–25% of the corporation's issued shares.
180.The per share amount normally assigned by the board of directors to a large share dividend is
a.the market value of the shares on the date of declaration.
b.the average price paid by shareholders on outstanding shares.
c.the par or stated value of the shares.
d.zero.
181.The per share amount normally assigned by the board of directors to a small share dividend is
a.the market value of the shares on the date of declaration.
b.the average price paid by shareholders on outstanding shares.
c.the par or stated value of the shares.
d.zero.
182.The effect a declaration and distribution of a share dividend has on the par value per share is a(an)
a. increase.
b. decrease.
c. increase or decrease.
d. no effect.
183.The declaration of a small share dividend will
a.increase share premium.
b.change total equity.
c.increase total liabilities.
d.increase total assets.
184.Which of the following show the proper effect of a share split and a share dividend?
Item Share SplitShare Dividend
a.Total equityIncreaseIncrease
b.Total retained earningsDecreaseDecrease
c.Total par value (ordinary)DecreaseIncrease
d.Par value per shareDecreaseNo change
185.A share split
a.may occur in the absence of retained earnings.
b.will increase total equity.
c.will increase the total par value of the shares.
d.will have no effect on the par value per share of shares.