Answer the following statements true (T) or false (F)
1. Declaring and paying dividends causes an increase in both assets and stockholders' equity of the
corporation.
2. Legal capital refers to the portion of stockholders' equity that cannot be used for dividends.
3. If preferred stock is noncumulative, the company is required to pay dividends that were passed in
previous years.
4. The declaration date is the date the corporation prepares a journal entry to record that stockholders
will receive dividend checks.
5. No journal entry is made on the dividend declaration date.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?
A) a Dutch auction with one buyer and many sellers B) an English auction with one seller and many buyers C) an ascending bid auction D) a sealed-bid auction E) a Dutch auction with one seller and many buyers
A nondeductible charitable contribution is a permanent book/tax difference.
Answer the following statement true (T) or false (F)
A ________________ tends to be used when a company simultaneously confronts pressures for cost-effectiveness and local adaptation.
What will be an ideal response?
Explain when the active voice is preferred and when the passive voice is preferred in business communication. Provide one effective example of each voice