TRUE OR FALSE Question 14 A large retained earnings account means that there is cash available to pay dividends. Question 15 (1 point) A 10% stock dividend decreases retained earnings. Question 16 (1 point) Cash dividends are paid on treasury stock. Question 17 (1 point) A cash dividend decreases stockholders equity and decreases assets. Question 18 (1 point) Cash dividends become a liability to a corporation on the date of record. Question 19 (1 point) The declaration of a stock dividend results in a liability. Question 20 (1 point) The day a corporation distributes a dividend is called the declaration date. Question 21 (1 point) 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share. This results in $1,000 of income. Question 22 (1 point) Treasury stock reduces total stockholders' equity. Question 23 (1 point) The journal entry to record the purchase of treasury stock will not affect total assets. Question 24 (1 point) The dividend yield is computed by dividing dividends per share by earnings per share. Question 25 (1 point) A corporation's stock has a current market value of $150. After a 4- for-1 stock split, the market value of the stock will fall to approximately $50. Question 26 (1 point) A stock split results in a transfer from retained earnings to paid-in capital. Question 27 (1 point) A stock dividend decreases stockholders equity and decreases assets