31.A large retained earnings account means that there is cash available to pay dividends.
a.True
b.False
32.When the board of directors declares a cash or stock dividend, this action decreases retained earnings.
a.True
b.False
33.The declaration of a cash dividend decreases a corporation's stockholders equity and decreases its assets.
a.True
b.False
34.One of the prerequisites to paying a cash dividend is sufficient retained earnings.
a.True
b.False
35.Cash dividends become a liability to a corporation on the date of record.
a.True
b.False
36.The declaration and issuance of a stock dividend does
notaffect the total amount of a corporation's assets,liabilities, or stockholders' equity.
a.True
b.False
37.The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.
a.True
b.False
38.Before a stock dividend can be declared or paid, there must be sufficient cash.
a.True
b.False
39.The day on which the board of directors of the corporation distributes a dividend is called the declaration date.
a.True
b.False
40.A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.
a.True
b.False