Reference no: EM132933330

Problem 1: What type of account is Stock Dividends Distributable?

Select one:
a. Contra liability
b. Asset
c. Equity
d. Liability

Problem 2: Retained earnings shall be reported as:

Select one:
a. Component of equity as part of share premium
b. Component of total liabilities as current liability
c. Component of shareholders' equity as part of total shareholders' equity
d. Component of total liabilities as noncurrent liability

Problem 3: Which of the following is TRUE about stock splits?

Select one:
a. Stock splits are done to increase the shares' liquidity
b. Stock splits can only increase the number of shares outstanding. There is no such thing as a reverse stock split.
c. Stock splits automatically result in an increase in retained earnings
d. Stock splits are done to increase each shareholder's percentage ownership in the company