Dividends are first recorded and retained earnings are reduced on A The ex-divid
ID: 2475398 • Letter: D
Question
Dividends are first recorded and retained earnings are reduced on A The ex-dividend date B The date of record A. The date of declaration D The date of payment 12. Treasury stock appears as: A An asset account B A liability account expense account A contra-equity account. 13 Of the items listed, which would describe preferred stock A Preferred as to dividends B Preferred as to liquidation nights C Both A & B None of the above 14 Which of the following would be classified as an extraordinary item? A A large gift given to the company B A loss from obsolete inventory C A loss from a natural disaster that affects the company at infrequent intervals D A loss from an law that made inventory unsalable 15. Par value represents The minimum legal value of a share of common stock B. Market price of a share of common stock C. The value of a share of common stock divided by EPS. D Market price divided by book value of a share of stockExplanation / Answer
7. The net assets of a corporation are equal to Total Assets - Total Liabilities. 8. Most preferred stocks have one or more of the following characteristics, except callable at the option of the corporation. 9. When shares of stock are sold from one investor to another, they will trade at the market value. 10. Stock that has been issued by a corporation, and later reacquired, is classified as Treasury Stock. 11. Dividends are first recorded and retained earnings are reduced on the date of declaration. 12. Treasury stock appears as a contra-equity account. 13. Preferred Stock is one which is preferred as to dividend and liquidation rights both. 14. A loss from a natural disaster that affects the Company at infrequent intervals would be classified as an extraordinary item. 15. Par Value represents the minimum legal value of a share of common stock.