Question 3 (3 points)

All of the following statements are true concerning treasury stock except:

A	is accounted for by the cost method.
B	does not change the number of shares issued.
C	does not change the number of shares outstanding.
D	reduces stockholder claims on corporate assets.

Question 4 (3 points)

In order to pay a cash dividend

A	the corporation must have adequate retained earnings.
B	the board of directors must declare a dividend.
C	the corporation must have adequate cash.
D	all of these answer choices are correct

Question 5 (3 points) Dividends can take the following forms:

A CASH
B	property
C	script
D	all of these answer choices are correct.