True or false?

1) Dividends may be declared and paid in cash or stock.

2) The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

3) A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

4) Net income of a corporation should be closed to retained earnings and net losses should be closed to paid-in capital accounts.

5) A correction in income of a prior period involves either a debit or credit to the Retained Earnings account.

6) Retained earnings that are restricted are unavailable for dividends.

7) A retained earnings statement shows the same information as a corporation income statement.

8) Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.

9) Many companies prepare a stockholders equity statement instead of presenting a detailed stockholders equity section in the balance sheet.

10) A corporation incurs income tax expense only if it pays dividends to stockholders.