Ricks Internet Corporations balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriated for future business expansion. This will cause total retained earnings to A. remain at $30,000. B. increase by $15,000. C. decrease by $15,000. D. increase or decrease $5,000, as determined by the board.

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash. This error would cause

A. the periods end assets to be overstated.

B. the periods end liabilities to be overstated.

C. the periods end stockholders equity to be understated.

D. None of the above

Which of the following is the journal entry to record the declaration of a stock dividend?

A. Debit Common Stock Dividend Distributable (number of shares par value common stock); credit Common Stock (same)

B. Debit Common Stock Dividend Distributable (number of shares market value common stock); credit Common Stock (same)

C. Debit Retained Earnings (market value number of shares); credit Common Stock Dividend Distributable (number of shares par value); credit Paid-In Capital in Excess of Par Stock Dividend (market value par value) number of shares

D. Debit Common Stock (number of shares par value); credit Cash

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause

A. the periods net income to be understated.

B. the periods end liabilities to be understated.

C. the total periods end stockholders equity to be understated.

D. the periods net income to be overstated.

The date of record for cash dividends is

A. the date the board of directors pays a dividend.

B. the date established by the board of directors that determines who will receive dividends.

C. the date that creates a liability for the company.

D. None of the above

ABC Corporation offered a four-for-one stock split. The number of outstanding shares before the split was 15,000, and the par value was $20 per share. After the split, what was the par value and number of shares?

A. 3,750 shares at $80 per share

B. 60,000 shares at $80 per share

C. 60,000 shares at $5 per share

D. 3,750 shares at $5 per share

Farm and Supply reissued 100 shares of treasury stock at $20 that had been reacquired for $15 per share. What is the entry?

A. Debit Cash $2,000; credit Treasury StockCommon $1,500; credit Paid-In Capital from Treasury Stock $500

B. Debit Cash $2,000; credit Treasury StockCommon $2,000

C. Debit Cash $1,500; credit Paid-In Capital from Treasury Stock $500, credit Treasury StockCommon $2,000

D. None of the above

Treasury Stock is which type of account?

A. Stockholders equity

B. Liability

C. Asset

D. Contra-stockholders equity

In the dividend process, the liability Dividend Payable is recognized on the date of

A. declaration.

B. record.

C. payment.

D. stock issue.

To record the purchase of treasury stock,

A. debit Treasury StockCommon (par value) and credit Cash (same).
B. debit Treasury StockCommon (purchase price) and credit Cash (same).
C. debit Treasury StockCommon (par value) and debit any difference to Paid-In Capital; credit Cash (purchase price).
D. None of the above