cash dividends can be paid only when:

11. Cash dividends can be paid only when: A) the retained earnings account has a positive balance greater than the dividend. B) the cash account has a balance greater than the amount of the dividend declared. C) the board of directors has declared the dividend. D) all of the above. 12. On February 16, a company declares a 34 dividend to be paid on April 5. There are 2 million shares of common stock outstanding and 100,000 shares of treasury stock. What does the company record in February? A) A debit to Dividends Payable and a credit to Cash, each for $714,000. B) A debit to Dividends Declared and a credit to Dividends Payable, each for $680.000. C) A debit to Dividends Payable and a credit to Cash, each for $680,000. D) A debit to Dividends Declared and a credit to Dividends Payable, each for $714,000. 13. The effect of a stock dividend is to: A) decrease total assets and stockholders' equity. B) change the composition of stockholders' equity. C) decrease total assets and total liabilities. D) increase the market value per share of common shares