There are several types of dividends. Some of these result in a reduction of stockholders equity and an

increase in shareholder wealth. These can be referred to as true dividends. Others result in a return of capital or no change in ownership interest and therefore a non-taxable distribution. These can be referred to as not so true dividends. Classify the following situations as either: T = True dividends N = Not so true dividends

Question 21 options:

12	Property dividends
12	Stock splits
12	Cash dividends
12	Stock dividends
12	Liquidating dividends

1.	True dividends
2.	Not so true dividends

There are two accrual methods of accounting for warranty costs. Match each of them with the appropriate items.

Question 22 options:

12	The accounting concern is The Revenue Recognition Principle.
12	The accounting concern is The Expense Recognition Principle.
12	A warranty is included, at no extra charge, as part of the sale of the item.
12	Either the original product has no warranty or the extra warranty extends the length of the original warranty.
12	Estimated warranty liability is created
12	Unearned (deferred) revenue is created.

1.	Assurance warranty approach
2.	Service warranty approach