The corporation issued a 20% share dividend on its share capital. At what amount should retained earnings be reduced for this transaction?

a. Fair value at the declaration date

b. Fair value at the date of issuance

c. Par value

d. Zero because no effect in the total stockholders' equity

A share split will have no effect on the assets and shareholder's equity

a. True

b. False

A property dividend is recorded at the adjusted carrying value, on the date of declaration, of the non cash asset to be distributed as dividends

a. True

b. False

Earnings per share shall be computed on the basis of:

a. ordinary shares issued at the end of the year

b. ordinary shares outstanding at the end of the year

c. ordinary shares outstanding at the beginning of the year

d. average ordinary shares outstanding during the year

At the date of the financial statements, ordinary shares issued would exceed ordinary shares outstanding as a result of the __

a. declaration of share capital dividend

b. declaration of share split

c. purchase of treasury shares

d. payment in full of subscribed shares