chapter 14 t/f Flashcards
a cash dividend is a pro rata distribution of cash to stockholders
t
a dividend based on paid in capital is termed a liquidating dividendf
t
the date that the board of directors formally declares a cash dividend is the date of record
f
dividends payable is a current liability because it will normally be paid within the next several months
t
a stock dividend results in a decrease in retained earnings and a increase in paid in capital
t
common stock dividends distributable is reported as additional paid in capital in the stockholders equity section
f
a stock split must be formally journalized
f
a net loss is credited to retained earnings in preparing closing entries
f
retained earnings restrictions are generally disclosed in the notes to the financial statements
t
a prior period adjustment is reported as an adjustment of the beginning balance of retained earnings
t
the return on common stockholders equity ratio shows how many dollars of net income were earned for each dollar invest by the owners
t
income tax expense and the related liability for income taxes payable is recorded when taxes are paid
f
earnings per share is reported only for common stock
t
if a company has declared any preferred dividends, they should be added to net income in the calculation of earnings per share.
f
