Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. For a dividend to NOT be legal a. the Board of Directors must declare a dividend. b. there must be retained earnings greater than
1. For a dividend to NOT be legal
a. the Board of Directors must declare a dividend. b. there must be retained earnings greater than the amount of the dividend. c. there must be a notification posted in the newspaper for the meeting. d. there must be enough cash to cover the dividend on the date of declaration
2. The Board of Directors voted to set aside $40,000 cash for the Sinking Fund. What is the effect of the transaction on cash and total assets?
- Cash increases, total assets increase c. Cash increases, assets decrease
- Cash decreases, total assets stay the same d. None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started