41.The stock dividends distributable account is listed in the current liability section of the balance sheet.
a.True
b.False
42.If 20,000 shares are authorized, 15,000 shares are issued, and 500 shares are held as treasury stock, a cashdividend of $1 per share would amount to $15,000.
a.True
b.False
43.Cash dividends are normally paid on shares of treasury stock.
a.True
b.False
44.The cost method of accounting for the purchase and sale of treasury stock is a commonly used method.
a.True
b.False
45.Under the cost method, when treasury stock is purchased by the corporation, the par value and the price at whichthe stock was originally issued are important.
a.True
b.False
46.If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of incomeis reported on the income statement.
a.True
b.False
47.A sale of treasury stock may result in a decrease in paid-in capital. All decreases should be charged to Paid-InCapital from Sale of Treasury Stock.
a.True
b.False
48.Treasury Stock is listed in the stockholders' equity section on the balance sheet.
a.True
b.False
49.A restriction/appropriation of retained earnings establishes cash assets that are set aside for a specific purpose.
a.True
b.False
50.A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning ofthe period in which the adjustment was made.
a.True
b.False