stockholders' equity Flashcards
1
Q
when are rights to exercise stock recorded?
A
when rights are exercised
2
Q
what is a liquidating dividend?
A
cash dividend - retained earnings
3
Q
when is a liability for cash dividend incurred?
A
on the date of declaration
4
Q
what is a property dividend recorded at?
A
fair value
5
Q
what does a liquidating dividend decrease?
A
APIC
6
Q
how is retained earnings impacted in:
small stock dividend
large stock dividend
A
fair value
par value
7
Q
what is the net affect on equity after a stock dividend?
A
none
retained earnings
(common stock)
8
Q
what are dividends in arrears?
A
undeclared dividends or cumulative preferred stock
9
Q
how are dividends in arrears reported?
A
disclosed in the footnotes
