10. The three important dates governing dividends are:
a. date of declaration⎯the date the directors vote to pay a dividend.
11. Cash dividends debited against paid-in capital accounts are called liquidating dividends
12. Declaring a stock dividend has no effect on assets, liabilities, or total equity. Also, the
13. A stock dividend results in a distribution of additional shares to stockholders and the
capitalization of retained earnings. A stock split calls in the old shares and replaces
14. A stock dividend should not be considered income because it does not transfer any
assets from the corporation to the stockholders.
15. A treasury stock purchase reduces total assets and total equity by equal amounts.
16. Treasury stock purchases affect the corporate assets and stockholders’ equity just like a
17. With a simple capital structure, earnings per share is calculated by first subtracting any
18. A stock option is the right to purchase common stock at a fixed price over a specified
19. When a corporation has no preferred stock, book value per share is calculated by
20. Apple discloses on its fiscal 2013 balance sheet that it has 1,800,000 common shares
21. The par value for Google’s preferred stock is reported to be $0.001. A low par value can
22. From a review of its statement of cash flows, Samsung did not report any cash outlay in