Advanced Accounting Ch. 11 Review

The stockholder who receives the dividend is the person who owns the stock on the

• date of record

• date of declaration

• declaration date

• dividend date

Treasury stock would be reported on the balance sheet as

• an asset

• a liability

• stockholder's equity

• none of these

The payment of a dividend must be authorized by the

• management

• common stockholders

• board of directors

• preferred stockholders

No transaction is recorded on the

• date of payment

• date of record

• date of distribution

• dividend declaration date

Payment of a stock dividend

• increases retained earnings

• decreases retained earnings

• increases stockholders' equity

• decreases stockholders' equity

Stock of another corporation purchased as a temporary investment is called

• an investment security

• preferred stock

• treasury stock

• a marketable security

A corporation having 50,000 shares of 6%, $100 par-value preferred stock outstanding will pay a quarterly dividend of

• $7,500

• $15,000

• $75,000

• $300,000

An individual who purchases stock on the day after the date of record purchases the shares

• contra-dividend

• at less than market value

• ex-dividend

• pre-dividend

A company purchases 50 shares of its own $1.00 par-value stock for $10.00 per share and subsequently sells 30 shares for $12.00 per share. The recognized gain on the sale of the stock is

• $0.00

• $60.00

• $330.00

• $360.00

A corporation having 100,000 shares of $1.00 par-value common stock issues a 5% stock dividend. The stock has a market price of $30.00 per share. The total amount of the stock dividend is

• $150,000

• $15,000

• $30,000

• $300,000