I will check to see if your answers are correct.
Q1: When a dividend is declared the accounts debited and credited are:
a.) dividend and divdend payable.
b.) dividend payable and cash in bank.
c.) retained earning and dividends.
d.) cash and dividend payable.
Q2: on the date of record of dividend the accounts to be debited and credited are:
a.) dividend and dividend payable
b.) dividend pauable and cash in bank
c.) no journal entry is made
d.) retained earnings and dividend
Q3: the charter of a publicly held corporation provides:
a.) a list of the board of directors
b.) the legal permission to operare the business
c.) the list of the management
d.) the rate of dividend
Q4: the share of profit distributed to stockholders is called:
d.) retained earnings
Q5: which method is used to distrubute dividends to common share holders?
a.) fixed method
b.) variable method
c.) random method
d.) negotiable method
Q6: Generally a preferred stock is issued at:
a.) a par value of share
b.) a premium
d.) none of the above
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