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Flashcards in Deck22 Deck (13):
1

What is the main source that Dividends are paid out of?

Retained Earnings

2

Owners Equity(OE) is reduced for all Dividends except:

Stock dividends

3

For Property Dividends (Noncash), the assets are measured at what at the date of declaration?

Fair Value

4

What is a Scrip Dividend?

When a company declared a Dividend, but doesn't have the cash to pay for it.(They promise to pay the Dividend Later - in effect creating a Note Payable)

5

What type of Dividend is not payed from Retained Earnings?

Liquidating Dividend - they are paid from Contributed Capital

6

When Dividends are declared, RE is Debited (subtracted) at the date of (a) Declaration or (b)Payment

(a) Declaration

7

Dividends in Arrears are disclosed where?

Footnote only

8

If Paid in Capital goes below zero, then any amount remaining is:

Debited to Retained Earnings(RE)

9

Are stock dividends received treated as revenue?

No

10

Do stock dividends increase Current Liabilities when declared?

No - They do not decrease assets or increase debt

11

Large stock Dividends (>25%) are recorded at (a) market value or (b) par value

(b) Par Value

12

Do stocks or warrants have any effects on earnings?

No - a firm does not profit from transactions with owners.

13

When a company goes through quasi-reorganization, its balance sheet carrying amounts are state at:

Fair Value