A corporation with $10 par common stock issues a large stock dividend. The capitalization of retained earnings is equal to:
A. The market value of the shares outstanding.
B. The market value of the shares to be distributed.
C. The par value of the shares outstanding.
D. The par value of the shares to be distributed.
E. There is no capitalization of retained earnings in the case of a large stock dividend.
Answer: D
You might also like to view...
Marketing managers use a market penetration strategy to target:
A) individuals who have never used the product or service. B) offshore customers who have a need for the product or service. C) individuals who are buying your product or service or a direct competitor's. D) individuals who buy closely-related products or services.
All of the following statements regarding leases are true except:
A. For a finance lease, the lessee amortizes the right-of-use asset acquired under the lease. B. Finance leases create a liability on the balance sheet. C. For a short-term lease of a few days or weeks, the lessee records payments as rental expense. D. For a finance lease, the lessee records the leased item as its own asset. E. Finance leases do not transfer ownership of the asset under the lease, but operating leases often do.
A turn-key project is best defined as:
A. giving a foreign manufacturer the right to use a patent in return for the payment of a royalty B. a form of direct foreign investment in which the investing entrepreneur holds a minority ownership position in the foreign venture C. a method in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company D. a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners
Which of the following statements is (are) true with respect to the use of credit-based insurance scores as an auto insurance rating factor?
I. Insurers claim that drivers who have poor insurance scores are expected to have relatively more accidents. II. The use of insurance scores has been banned as a rating factor in all states as it unfairly discriminates against certain groups of individuals. A) I only B) II only C) both I and II D) neither I nor II