QUESTION 4

1. Common stock dividends distributable are

   		a stockholders' equity account
   		payable in cash
   		considered to be a current liability
   		an asset account

1 points

QUESTION 5

1. Retained earnings restrictions

   		set aside cash to pay dividends
   		make a portion of retained earnings unavailable for dividends
   		occur when a company has negative retained earnings
   		reduce the net income for the year

1 points

QUESTION 6

1. For accounting purposes, the method used to account for long-term stock investments is determined by

   		the amount paid for the stock by the investor.
   		whether the stock has paid dividends in past years.
   		the extent of an investor's influence on the operating and financial affairs of the investee.
   		whether the acquisition of the stock by the investor was "friendly" or "hostile".

1 points

QUESTION 7

1. The cost method of accounting for long-term investments in stock should be used when the investor's

   		influence over the investee is significant.
   		portfolio is made up of more than 100 securities.
   		influence over the investee is insignificant.
   		market value of the shares is greater than the historic cost.