1. No entry is required on the declaration date for a cash dividend. A) True B) False 2. If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation. A True B) False 3. Variations among companies in the application of generally accepted accounting principles may reduce quality of earnings. Truc B) False A contingent liability is a liability that may occur if some future event takes place. A) True B) False 5. Par value A) is established for a share of stock after it is issued. B) is the value assigned per share when the company is first started. represents what a share of stock is worth. D) represents the original selling price for a share of stock. C) 6. Which of the following factors does not affect the initial market price (selling price) of a stock? A) The company's anticipated future B) The par value of the stock 0 The current state of the economy D) The expected dividend rate per share