SELECT THE BEST ANSWER TO QUESTIONS 14 TO 22 AND PUT YOUR ANSWERS ON THE SCANTRON CARD 14) Which of the following transactions cannot result in a decrease to retained earnings? a) declaring and issuing a stock dividend b) incurring a net loss for the period c) reacquiring of shares for a higher cost than the original issue price d) declaring a stock split 15) Which of the following transactions would NOT result in an increase to retained earnings? a) correction of an error in which expenses were overstated in a previous year b) issuing both preferred and common shares for a lump sum amount that is less than market value c) earning a net income for the period d) none of the above 16) A journal entry for dividends is NOT made on the a) date of declaration. b) date of record. c) date of payment (cash dividends). d) date of distribution (stock dividends). 17) How would the declaration of a 15% stock dividend affect each of the following? Total Shareholders' Equity no effect decrease no effect decrease Retained Earnings a) no effect b) no effect c) decrease d) decrease 18) What type of lease is excluded from being recognized as a finance lease under IFRS? a) short-term leases b) vehicle leases c) significant value leases d) leases including bargain purchase options Lease A does not contain a bargain purchase option, but the lease term is equal to 90% of the estimated economic life of the leased property. Lease B does not transfer ownership of the p to the lessee by the end of the lease term, but the lease term is equal to 85% of the estimate economic life of the leased property. Using ASPE criteria, how should the lessee classify the leases? 19) Lease A a) Operating lease b) Operating lease c) Capital lease d) Capital lease Lease B Capital lease Operating lease Capital lease Operating lease