Share dividends are recorded at market value.

True

False

A share dividend is a corporation's distribution of its own shares to its shareholders without receiving any payment in return.

True

False

Retained earnings are part of the shareholders' claim on the company's net assets.

True

False

If a company's activities include operations that are being discontinued, the income or loss effects of the discontinued operations are included on the income statement in income from continuing operations.

True

False

A reverse share split reduces the market value of shares and the par value per share.

True

False

When a corporation calls in its outstanding shares and issues more than one new share in exchange for each old share, this is a:

A. Share split

B. Share dividend

C. Cash dividend

D. Reverse share split

E. Liquidating dividend

A share dividend

A. Is a distribution of additional shares to its shareholders without receiving any payment

B. Transfers a portion of equity from retained earnings to contributed capital

C. Is often referred to as a stock dividend

D. Does not reduce a corporation's assets and equity

E. All of these

Shares that are reacquired and are not cancelled by the issuing corporation are called

A. Capital shares

B. Treasury shares

C. Redeemed shares

D. Preferred shares

E. Callable shares

The act of a corporation to call in its shares and issue one new share in the place of more than one share previously outstanding is a

A. Share dividend

B. Reverse share split

C. Liquidating dividend

D. Share split

E. Cash dividend

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a

A. Premium on shares

B. Share subscription

C. Share dividend

D. Discount on shares

E. Preferred share