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10. On January 1, 2019, a company issued 10,000 shares of 10%, $10 par value cumulative preferred stock. No dividends were declared in 2019 or

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10. On January 1, 2019, a company issued 10,000 shares of 10%, $10 par value cumulative preferred stock. No dividends were declared in 2019 or 2020. In 2021, the company declared a dividend of $200,000. How much of the 2021 dividend should be paid to common stockholders? a. $170,000 b. S190,000 c. S197,000 d. $200,000 11. When is a liability for dividends created? a. at the end of each fiscal year b. at the date of declaration c. at the date of record d. at the date of payment Lakeshore Industries This company reported the following information on its recent balance sheet: Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding 12. Refer to Lakeshore Industries. What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared? a. A stock dividend has no impact on any of the stockholders' equity accounts. b. Total stockholders' equity increases $75,000. c. Cash increases $300,000. d. $225,000 of retained earnings is transferred to the capital stock accounts. 13. If'a corporation declares a 2-for-I stock split, which of the following is true? a. A journal entry is required to show the effect on the stockholders' equity accounts. b. The stockholders will have a higher proportionate ownership share after the split. c. The par value will be reduced to half of the pre-split par value. d. The market price of the stock is expected to increase after the split. 14. Inflows and outflows from operating activities relate to - a. revenues. b. penses. c. both a and b. d. neither a nor b. 15. The Statement of Cash Flows is prepared a. after the Income Statement but before the Balance Sheet. b. after the Income Statement, Balance Sheet, and Statement of Changes in Stockholders' Equity (in other words, last) c. after the Balance Sheet, but before the Statement of Changes in Stockholders' Equity d. on Tuesdays, unless it's raining. ngage Leaming Powered by Cognero. Page 3

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