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FT - Evaluation Quiz 2

This document contains multiple choice questions about dividends and distributions of profits by corporations. It covers topics like how different types of dividends affect retained earnings, assets, stockholders' equity, and which accounts are and aren't liability accounts. It also asks about who is entitled to dividends, conditions for cash dividends, examples of voluntary appropriations, how stock dividends affect shareholder rights, and formulas for earnings per share, book value per share, and price-earnings ratios.

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LLYOD FRANCIS LAYLAY
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308 views3 pages

FT - Evaluation Quiz 2

This document contains multiple choice questions about dividends and distributions of profits by corporations. It covers topics like how different types of dividends affect retained earnings, assets, stockholders' equity, and which accounts are and aren't liability accounts. It also asks about who is entitled to dividends, conditions for cash dividends, examples of voluntary appropriations, how stock dividends affect shareholder rights, and formulas for earnings per share, book value per share, and price-earnings ratios.

Uploaded by

LLYOD FRANCIS LAYLAY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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A DISTRIBUTION OF EARNED PROFITS IN THE FORM OF CASH,PROPERTY OF STOCK.

DIVIDEND.
RETAINED EARNINGS
APPROPRIATION.
CAPITAL STOCK.

WHICH ONE DOES NOT DECREASE RETAINED EARNINGS?


NET INCOME.
APPROPRIATION.
DIVIDENDS.
NET LOSS.

WHICH ONE DOES NOT DECREASE ASSETS AT THE DISTRIBUTION DATE?


CASH DIVIDEND.
PROPERTY DIVIDEND .
SCRIP DIVIDEND.
STOCK DIVIDEND.

WHICH ONE DORS NOT AFFECT TOTAL STOCKHOLDERS'EQUITY?


CASH DIVIDEND.
PROPERTY DIVIDEND.
SCRIP DIVIDEND.
STOCK DIVIDEND.

WHICH ONE IS NOT A LIABILITY ACCOUNT?


CASH DIVIDEND PAYABLE.
PROPERTY DIVIDEND PAYABLE.
STOCK DIVIDEND PAYABLE.
SCRIP DIVIDEND PAYABLE.

WHO ARE ENTITLED TO DIVIDENDS?


ISSUED SHARES.
OUTSTANDING AND SUBSCRIBED SHARES.
ISSUED AND SUBSCRIBED SHARES.
ISSUED AND OUTSTANDING SHARES.

THE FOLLOWING CONDITIONS MUST BE PRESENT FOR CASH DIVIDENDS TP BE DISTRIBUTED


EXCEPT
SUFFICIENT RETAINED EARNINGS.
SUFFICIENT UNISSUED SHARES.
DWCLARATION BY THE BOARD OF DIRECTORS .
SUFFICIENT CASH.

AN EXAMPLE OF A VOLUNTARY APPROPRIATION IS AN APPROPRIATION FOR


TREASURY SHARE.
BOND REDEMPTION.
MACHINE ACQUISITION.
STOCK REDEMPTION.

A DIVIDEND DECLARED OUT OF THE INVESTMENT IN STOCKS OF OTHER COMPANIES IS A


PROPERTY DIVIDEND.
STOCK DIVIDEND.
SCRIP DIVIDEND.
NON-CASH DIVIDEND.

IF THE EXCESS DIVIDENDS ARE DISTRIBUTED TO BOTH COMMON AND PREFERRED


STOCKHOLDERS,THE PREFERRED SHARES ARE PRESUMED TO BE
CALLABLE.
CUMULATIVE.
PARTICIPATING.
B AND C.

STOCKS WERE SOLD FOR CASH TO 10,000 STOCKHOLDERS ON MARCH 1,2012.THE BOARD OF
DDIRECTORS DECLARED A CASH DIVIDEND OF P10 ON NOVEMBER 30 TO STOCKHOLDERS
ON RECORD AS OF DECEMBER 15,PAYABLE ON DECEMBER 20.THE ACCOUNTANT SHOULD NOT
PREPARE AN ENTRY ON
MARCH 1.
NOVEMBER 30.
DECEMBER 15.
DECEMBER 20.

IF A SHAREHOLDER RECEIVES ADDITIONAL SHARES AS STOCK DIVIDEND,HIS RIGHT OVER THE


CORPORATION WILL INCREASE
TRUE
FALSE

THE FORMULA TO DETERMINE THE NET INCOME THAT ACCRUES TO THE SHAREHOLDERS PER SHARE
OF STOCK IS THE
EARNINGS PER SHARE.
MARKET VALUE PER SHARE.
BOOK VALUE PER SHARE.
PRICE-EARNINGS PER RATIO.

THE NETWORTH OF A SHARE OF STOCK IS REPRESSENTED BY THE


EARNINGS PER SHARE.
BOOK VALUE PER SHARE.
MARKET VALUE PER SHARE.
PAR VALUE PER SHARE.

THIS FORMULA EVALUATES THE ATTRACTIVENESS OF THE STOCK SINCE ONE COULD RELATE THE
COST OF BUYING A SHARE AGAINST HOW MUCH A SHARE EARNS IN PROFIT
EARNINGS PER SHARE.
MARKET SHARE.
BOOK VALUE.
PRICE-EARNINGS RATIO.

A DIVIDEND PAYABLE IN MERCHANDISE IS CALLED A


MERCHANDISE DIVIDEND.
PROPERTY DIVIDEND.
STOCK DIVIDEND.
CASH DIVIDEND.

WGA CORP DECLARED A 10% CASH DIVIDEND IN DECEMBER 1 PAYABLE TO SHAREHOLDERS ON


RECORD AS OF DECEMBER 31. A SHAREHOLDER WITH 100 SHARES OF A P10 PAR STOCK
WHO BOUGHT ANOTHER 100 SHARES ON DECEMBER 15 WILL RECEIVE. DIVIDENDS SHOULD BE
RECORDED AT
P100
P200
P1000
P2000

POWER CORPORATION DECLARED A PROPERTY DIVIDENDS OF 10 MERALCO SHARES FOR ONE POWER
SHARE HELD. POWER SHARE HAS A PAR VALUE OF P50 AND A MARKET CALUE OF P100.
THE MERALCO SHARES WERE ORIGINALLY PURCHASED AT P10 PER SHARE. ITS FAIR MARKET
VALUE ON DECLARATION WAS P20 AND ON DISTRIBUTION DATE WAS P25. DIVIDENDS SHOULD BE
RECORDED AT?

P25
P100
P10
P20

PRETTY CORPORATION DECLARED A 10% STOCK DIVIDEND. PAR VALUE OF ITS STOCK IS P100
WHILE THE FAIR MARKET VALUE AT DECLARATION DATE WAS P150 AND AT DISTRIBUTION DATE
WAS P175.
RETAINED EARNINGS SHOULD BE DEBITED FOR

P150
P100
P175
P15

DIVIDENDS IN ARREARS ARE DISTRIBUTED TO PREFERRED STOCKHOLDERS

ONLY WHEN THERE IS A DECLARATION


IF IT IS A CUMULATION STOCK
IF IT IS A PARTICIPATING STOCK
BOTH A AND B

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