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26. When a company declares a cash dividend (cash dividend), but does not distributed yet: a. Debit an expense and credit a current debt b.

26. When a company declares a cash dividend (cash dividend), but does not distributed yet:

a. Debit an expense and credit a current debt

b. Debit Retained Earnings and credit current debt

c. Debit Retained Earnings and credit a contra cash account

d. None of the above

27. For what purpose would a company declare a Reverse Split; for example, 1:3?

a. To try to make the market price of the shares increase.

b. To try to make the market price of the shares decrease.

c. To have more shares available for your compensation program based on shares (share-based awards).

d. To reduce Earnings per share (Earnings per sare)

28. The cost to a company of a stock-based compensation plan is measured at base of:

a. The par value of the shares to be granted

b. The book value of the shares to be granted

c. The intrinsic value of the shares to be granted

d. The market price of the shares to be granted

29. The cost of a stock-based compensation plan is recognized as an expense:

a. On the date the plan is established.

b. On the date the executives complete the period of service.

c. On a cost amortization basis throughout the service period.

d. Not recognized as an expense

30. A plan based on stock appreciation (SAR) is considered debt, rather than assets, under the following circumstances:

a. Never. The plan is always heritage

b. When the employee will receive cash or can choose to receive cash.

c. When the company agrees to pay cash before the end of the service.

d. When the employee announces that he is going to resign from the company before he completes your term of service

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