Accounting Chapter 14

A stockholder is an owner of one or more shares of a corporation

• True

• False

Owner's equity accounts for a corporation normally are listed under a major chart of accounts division titled Capital Stock

• True

• False

Retained earnings are earnings distributed to stockholders

• True

• False

A dividend is an amount earned by a corporation and not yet distributed to stockholders

• True

• False

A dividend account has a normal debit balance and is increased by a debit.

• True

• False

A group of persons elected by the stockholders to manage a corporation is called a board of directors.

• True

• False

A board of directors distributes earnings of a corporation to stockholders by declaring a dividend

• True

• False

A declared dividend is classified as an expense

• True

• False

The accounts used to record a declaration of a dividend are Dividends Payable and Dividends Expense

• True

• False

When a declared dividend is paid, Dividends Payable is debited.

• True

• False