Choose the correct answer

11. An entry is not made on the

a. date of declaration.

b. date of record.

c. date of payment.

d. An entry is made on all of these dates.

12. Houser Corporation owns 4,000,000 shares of stock in Baha Corporation. On December 31, 2014, Houser distributed these shares of stock as a dividend to its stockholders. This is an example of a

a. property dividend.

b. stock dividend.

c. liquidating dividend.

d. cash dividend.

13. A mining company declared a liquidating dividend. The journal entry to record the declaration must include a debit to

a. Retained Earnings.

b. a paid-in capital account.

c. Accumulated Depletion.

d. Accumulated Depreciation.

14. Which dividends do not reduce stockholders' equity?

a. Cash dividends

b. Stock dividends

c. Property dividends

d. Liquidating dividends

15. What effect does the issuance of a 2-for-1 stock split have on each of the following?

Par Value per Share Retained Earnings

a. No effect No effect

b. Increase No effect

c. Decrease No effect

d. Decrease Decrease