28. On May 1, 2010, ROK Corporation had 400,000 shares of $30 par value common stock outstanding,...
28. On May 1, 2010, ROK Corporation had 400,000 shares of $30 par value common stock outstanding, with a market value of $90 per share. On May 2, 2010, ROK announced a 3-for-1 stock split. After the split, what was the par value of the stock?
a. $10
b. $20
c. $30
d. $90
29. Which of the following statements is TRUE?
a. Stock Splits decrease total stockholders' equity
b. Cash Dividends decrease total Stockholders' Equity
c. Stock Dividends decrease total Stockholders' Equity
d. All of the above answers are true.
30. Which of the following statements regarding Retained Earnings is FALSE?
a. The amount of Retained Earnings that is restricted is usually disclosed in the notes to the financial statements.
b. The balance in the Retained Earnings account should always be at least equal to or more than the cash account.
c. Restricting Retained Earnings could have an effect on the amount of dividends that are paid.
d. Retained Earnings could have a debit balance.
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28. On May 1, 2010, ROK Corporation had 400,000
shares of $30 par value common stock outstanding,...
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