Which of the following transactions will not affect a corporation's retained earnings?
stock repurchase |
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increase dividend payments |
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stock dividend |
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cut dividend payments |
Ans stock repurchase
Stock repurchases is the buy back of stock. It is made out of cash/ bank. On the other hand of the balance sheet it reduces stockholder's equity. It has no impact on retained earnings.
Dividend is paid out of Retained earnings and therefore affect retained earnings every time the dividend is paid.
Which of the following transactions will not affect a corporation's retained earnings? stock repurchase increase dividend...
Which of the following transactions decreases retained earnings? A property dividend. A stock dividend. A cash dividend. All of these answer choices are correct.
Which one of the following transactions always causes a decrease to retained earnings? Selling treasury stock Incurring net income for the period Declaring a stock dividend Paying a cash dividend that was previously declared D Question 13 2 pts Which one of the following is an effect when a company buys back its own shares of stock Leverage is not affected. It will pay more dividends. It will have a higher debt/equity ratio. Fixed assets will decrease.
TRANSACTION LIST
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as follows. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2817 S 6,825,452 5,568,552 5,724,552 2818 2816 Balance at beginning of year Net income (loss) Deductions: (156,eee) 3,288,788 2,188,98e 224,8e0 849,958 $ 9,848,282 Stock dividend (32,880 shares) Common shares retired (188,888 shares) Common stock cash dividends 216,808 708,80e 6,825,452 $ 5,568,552 Balance at end of year At December 31,...
Which of the following will increase retained earnings on the retained earnings statement?a. Net loss onlyb. Dividends, net incomec. Net income onlyd. Dividends, net loss
20. Which of the following Statements is correct? a. If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase. b. Large stock repurchases financed by debt tend to increase earnings per share, but they also increase the firm's financial risk. c. The tax code encourages companies to pay dividends rather than retain earnings. d. The stronger management thinks the clientele effect is, the more likely...
Indicate whether each of the following transactions would
increase (+), decrease (-), or not affect (N/A) total assets, total
liabilities, and total stockholders equity.
Transaction
Total Assets
Total Liabilities
Total Stockholders Equity
(a)
Declared cash dividend.
DecreaseIncreaseNot Affect
IncreaseNot AffectDecrease
DecreaseNot AffectIncrease
(b)
Paid cash dividend declared in (a).
Not AffectDecreaseIncrease
DecreaseNot AffectIncrease
DecreaseNot AffectIncrease
(c)
Declared stock dividend.
IncreaseDecreaseNot Affect
DecreaseNot AffectIncrease
IncreaseNot AffectDecrease
(d)
Distributed stock dividend declared in (c).
IncreaseDecreaseNot Affect
IncreaseDecreaseNot Affect
IncreaseDecreaseNot Affect
(e)
Split...
1. Restrictions on retained earnings include all but which of
the following characteristics?
a) A restriction on retained earnings means a reduction in the
power to declare dividends.
b) A journal entry must be made to indicate such a
restriction.
c) Restrictions on retained earnings must be disclosed in the
notes to the financial statements.
d) Only a portion of retained earnings may be restricted.
2. Cambridge Corp. declared a 5% stock dividend. Will Wales
owned 300 shares of Cambridge...
Retained Earnings: Transactions and
Statement
The stockholders’ equity of Ranger Corporation at January 1
appears below:
Common stock, $10 par value, 200,000 shares authorized;
80,000 shares issued and outstanding
$800,000
Paid-in capital in excess of par value
480,000
Retained earnings
305,000
During the year, the following transactions occurred:
May
12
Declared a 15 percent stock dividend; market value of the
common stock was $22 per share.
June
6
Issued the stock dividend declared on May 12.
Dec.
5
Declared a...
Retained Earnings: Transactions and Statement The stockholders’ equity accounts of Rayburn Corporation as of January 1 appear below: Common stock, $5 par value, 400,000 shares authorized; 160,000 shares issued and outstanding $800,000 Paid-in capital in excess of par value 920,000 Retained earnings 513,000 During the year, the following transactions occurred: June 7 Declared a 10 percent stock dividend; market value of the common stock was $11 per share. June 28 Issued the stock dividend declared on June 7. Dec. 5...
Which one of the following transactions occurs in the primary market? A. Repurchase of GHI stock from Tim by GHI B. Tax-free gift of DEF stock to Heather by Jennifer C. Sale of ABC stock by Fred Jones to Mary Smith D. Initial sale of JKL stock by JKL to Jamie E. Transfer of MNO stock from Tom to his son, Jon