Piano Corporation has a current ratio of 2:1. Piano declares a cash dividend. How will the journal entry to record the declaration affect the Current Ratio and Stockholders' Equity, respectively?

Select one:

a. Increase, No Effect

b. Decrease, No Effect

c. Increase, Increase

d. No Effect, Decrease

e. Decrease, Decrease

Which of the following dividend types does not reduce total stockholders' equity?

Select one:

a. Cash dividends

b. Stock dividends

c. Property dividends

d. Liquidating dividends

How does the declaration of a cash dividend that is ENTIRELY liquidating affect Retained Earnings and Current Liabilities, respectively?

Select one:

a. No effect, No effect

b. Increase, Decrease

c. Decrease, Increase

d. Decrease, No effect

e. No effect, Increase

The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property dividend. Journal entries were made to adjust the property to market value and declare the dividend. Indicate the combined effect on the Net Income and Retained Earnings, respectively:

Select one:

a. Decrease, Decrease

b. No Effect, Decrease

c. No Effect, Increase

d. Decrease, Increase

e. Increase, Decrease

Puppy Company includes one coupon in each bag of dog food it sells. In return for 3 coupons, customers receive a toy dog that the company purchases for $1.20 each. Puppy Company's experience indicates that 50% of the coupons will be redeemed. Information for 2012 is as follows: The amount of estimated liability for premiums on the 12/31/12 balance sheet is:

Select one:

a. $6,000

b. $8,000

c. $18,000

d. $35,000

e. $48,000