A stock dividend is a distribution of a companys own stock to its shareholders.T/F

When treasury stock is purchased, the amount in the common stock account remains unchanged. T/F

When a corporation sells treasury stock at an amount higher than its cost, a gain is recorded on the Income Statement. T/F

Companies owning less than 50% of the outstanding common stock in a subsidiary prepare consolidated financial statements. T/F

Dividends paid to common shares have no impact on the calculation of earnings per share. T/F

Which of the following is true regarding dividends in arrears?

a. They are a liability on the Balance Sheet.

b.They are missed dividends on common stock.

c. They are missed dividends on cumulative preferred stock.

d. All of the above.

Roots. owns common stock in Stems. Roots will prepare consolidated financial statements if:

a. Roots. owns > 25% of Stems shares.

b. Roots. owns > 50% of Stems shares.

c Roots. owns 100% of Stems shares.

d. Roots will prepare consolidated financial statements regardless of how many shares of Stems it owns.