Question
Which of the following does not reduce retained earnings? a. Declaring dividends b. Operating losses c. Selling products entirely on account d. Converting Preferred Stock
- Which of the following does not reduce retained earnings?
a. Declaring dividends
b. Operating losses
c. Selling products entirely on account
d. Converting Preferred Stock into Common Stock at a loss
2. Microsoft decides to pay $100,000 in dividends. For an unspecified reason, the company decides to pay the dividend by distributing $100,000 worth of stock in Google. This dividend is a ________________.
a. liquidating dividend
b. stock dividend
c. bonus dividend
d. property dividend
3. A company decides to declare a dividend. On which date will the company incur a liability for the dividend payment?
a. On the date of declaration
b. On the last day of the fiscal year
c. On the date of record
d. On the date of payment
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