The questions are indicated on the picture.

PROBLEM 5: MULTIPLE CHOICE - THEORY 1. Dividends declared on redeemable preference shares are recognized a. by a debit to retained earnings b. by a credit to retained earnings c. in profit or loss d. in other comprehensive income 2. A corporation incurs an obligation for dividends a. only when it dividends are declared. b. when dividends have not been declared for a very long period of time, as determined under the Corporation Code. c. only when it declares cash dividends, but not other types of dividends. d. a and b 3. According to the PFRSs, the date of declaration of a dividend is a. the date the dividends are declared by management b. the date the dividends declared by management is approved by a relevant authority C. the earlier of a and b d. a orb 4. Share dividends distributable (stock dividends payable) is included in the statement of financial position a. as a current liability b. as a noncurrent liability C. as an adjunct account to share capital d. as a contra-account to share capital 5. When an entity declares dividends, a. only the outstanding shares are entitled to the dividends. b. only the issued shares are entitled to the dividends. c. both the issued and outstanding shares, including reacquired shares, are entitled to the dividends. d. only the outstanding ordinary shares are entitled to the dividends. 6. Which of the following shares may not be entitled to any dividends? a. subscribed shares c. preference shares b. outstanding shares d. treasury shares 7. A company declared a cash dividend on its common stock on December 15, 20x8, payable on January 12, 20x9. How would this dividend affect stockholders' equity on the following dates? Jan. 12, 2029 Dec. 15, 20x8 Dec. 31, 20x8 Decrease No effect Decrease a. No effect b. Decrease No effect No effect C. No effect Decrease Decrease d. No effect No effect (AICPA)