Cash and stock dividends reduce retained earnings. 1. True 2. False

Which of the following is true about the effects of a stock dividend: 1. Shareholders' Equity: Decreases, Retained Earnings: No Change 2. Shareholders' Equity: Decreases, Retained Earnings: Decreases 3. Shareholders' Equity: No Change, Retained Earnings: Decreases 4. Shareholders' Equity: No Change, Retained Earnings: No Change

A stock split will: 1. increase the number of shares outstanding 2. decrease the amount of contributed capital 3. increase the amount of contributed capital 4. decrease retained earnings

Which of the following is true: 1. Treasury shares receive cash dividends. 2. Treasury shares must be sold for more than its cost. 3. Treasury shares are unissued shares of the corporation. 4. The purchase of treasury shares reduces shareholders' equity.