The usual stock, paid-in capital and also retained income are normally found in a corporation\"s stockholders\" same section. A. True B. False
The return on common stockholders\" same is computed by separating net revenue less wanted dividends by A. Nobody of the selections is correct. B. Average typical stockholders\" equity. C. Beginning common stockholders\" equity. D. Ending common stockholders\" equity.

You are watching: Which of the following statements about retained earnings restrictions is not true?


Contractual loan constraints A. An outcome in dividends in arrears B. Execute not cause occasional restriction of retained revenue C. Make available retained revenue for dividend declaration D. Cause occasional border of preserved earnings
What is the net revenue that a agency retains in the business? A. Retained income B. Unearned profits C. Unpaid dividend D. Reserves
Which the the adhering to statements around retained income restrictions is true? A. Every one of the options are correct. B. Long-term debt contracts might impose a border on retained income as a problem for the loan. C. Countless states require a corporation to restrict retained revenue for the cost of treasury share purchased. D. The plank of directors of a corporation may voluntarily create retained revenue restrictions for particular purposes.
When maintained Earnings has a debit balance, the firm has a A. Net revenue B. Cumulative income C. Deficit D. Cumulative dividends
Treasury share is a corporation\"s own stock, which has been reacquired and also held for future use. A. True B. False
The payout proportion is computed bydividing ______________________total cash dividends payment by net income.
In the stockholders\" equity ar of the balance sheet, additional paid-in capital appears A. Under total assets. B. Under the sub-section present liabilities. C. Under the sub-section resolved assets. D. Under the sub-section paid-in capital.
A. Come reissue share to officers under compensation to plan B. To boost trading of the company\"s share in the securities sector C. To have extr shares accessible to usage in getting other companies
Which of the adhering to are factors that a firm would gain treasury stock? select all the apply. A. To reissue shares to policemans under compensation plans B. To increase trading of the company\"s stock in the securities industry C. To have extr shares accessible to use in gaining other providers D. Together an legacy investment
D. Carriers will no disclose retained income restrictions uneven specifically requested by the stockholder.
Which of the complying with statements about retained earnings restrictions is no true? A. Permanent debt contracts may impose a border on retained earnings as a condition for the loan. B. Plenty of states call for a corporation to restrict retained earnings for the cost of treasury stock purchased. C. The board of director of a corporation might voluntarily develop retained earnings restrictions for particular purposes. D. Carriers will no disclose retained income restrictions uneven specifically requested by the stockholder.
When a agency declares a share dividend, the declaration will A. Increase complete assets B. Boost paid-in capital C. Change the full of stockholders\" equity D. Increase complete liabilities
When companies collection their dividend payout, they usually aim for a rate that is A. Low B. High C. Variable D. Sustainable
To find the return on common stockholders\" equity, divide net income available to common stockholders by A. Ending typical stockholders\" equity B. Average common stockholders\" equity C. Average total stockholders\" same D. Ending total stockholders\" equity
________ is typically NOT reported because that each course of stock on the balance sheet. A. Variety of shares issued B. Par value C. Number of shares authorized D. Sector value
Paid-in resources would appear under ________ ~ above a balance sheet. A. Contra to stockholders\" equity B. Stockholders\" same C. Resources stock D. Extr paid-in capital
Which the the adhering to statements about the retained earnings statement is true? A. It will certainly not reflect net losses. B. The amount of retained earnings cannot be connected with the balance of any type of asset account. C. The will, in part cases, fail come reconcile the beginning and ending retained earnings balances. D. That is the owners\" same statement because that a corporation.
Taft Industries had actually 250,000 share of usual stock outstanding before a stock separation occurred and 500,000 shares exceptional after the stock split. The stock split was A. 2-for-5 B. 1-for-5 C. 2-for-1 D. 5-for-1
Restricting retained earnings for the cost of treasury share purchased is a ________ restriction. A. Spontaneous B. Legal C. Stock D. Contractual
When a company offers a ________, this occasion does NOT call for a formal journal entry top top a corporation\"s books. A. 2 for 1 stock break-up B. $1.00 every share cash dividend C. 100% stock dividend D. 2% stock dividen
A. The legality the a dividend walk not show a company\"s capacity to salary a dividend.C. Dividends are not a liability until declared.
Which that the adhering to statements around a cash dividend are true? choose all the apply. A. The legality that a dividend walk not suggest a company\"s capability to salary a dividend. B. Shareholders typically vote to determine the lot of earnings to be distributed in the type of a dividend. C. Dividends room not a liability until declared. D. The legality the a cash dividend counts on state corporation laws.
D. Both a stock split and also a stock dividend will increase the number of shares outstanding however will have actually no impact on total stockholders\" equity.

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Which that the complying with statements is true? A. Both a stock split and a stock dividend will boost the number of shares outstanding and also will both increase total stockholders\" equity. B. A stock separation will boost the variety of shares outstanding but will decrease full stockholders\" equity. C. A stock break-up will increase the variety of shares outstanding and also will increase complete stockholders\" equity. D. Both a share split and also a share dividend will rise the variety of shares outstanding yet will have actually no impact on full stockholders\" equity.
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