1. Xeris, Inc. has 1,000 shares of 5%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? (Points : 2) $5 per share
$500 in total
$5,000 in total
$.05 per share
| Question 2. 2. Which one of the following is not necessary in order for a corporation to pay a cash dividend? (Points : 2) |
Adequate cash
Approval of stockholders
Declaration of dividends by the board of directors
Retained earnings |
| Question 3. 3. Dividends Payable is classified as a (Points : 2) |
long-term liability.
contra stockholders’ equity account to Retained Earnings.
current liability.
stockholders’ equity account. |
| Question 4. 4. The per share amount normally assigned by the board of directors to a small stock dividend is (Points : 2) |
the market value of the stock on the date of declaration.
the average price paid by stockholders on outstanding shares.
the par or stated value of the stock.
zero. |
| Question 5. 5. Each of the following decreases retained earnings except a (Points : 2) |
cash dividend.
liquidating dividend.
stock dividend.
All of these decrease retained earnings. |
| Question 6. 6. A corporation is not committed to a legal obligation when it declares (Points : 2) |
a cash dividend.
either a cash dividend or a stock dividend.
a stock dividend.
a distribution date. |
| Question 7. 7. Dividends are predominantly paid in (Points : 2) |
earnings.
property.
cash.
stock. |
| Question 8. 8. A stockholder who receives a stock dividend would (Points : 2) |
expect the market price per share to increase.
own more shares of stock.
expect retained earnings to increase.
expect the par value of the stock to change. |
| Question 9. 9. Which of the following is not a significant date with respect to dividends? (Points : 2) |
The declaration date
The incorporation date
The record date
The payment date |
| Question 10. 10. The per share amount normally assigned by the board of directors to a large stock dividend is (Points : 2) |
the market value of the stock on the date of declaration.
the average price paid by stockholders on outstanding shares.
the par or stated value of the stock.
zero. |
