Reference no: EM132823291

Problem 1: Common stock on the balance sheet is always valued at:

Option 1: Paid-in Capital plus Retained Earnings
Option 2: Paid-in Capital plus Retained Earnings minus Treasury Shares
Option 3: Par value times shares issued
Option 4: Par value times shares authorized
Option 5: Par value times shares outstanding

Problem 2: What is the difference between dividends that are declared and dividends that are paid?

Option 1: There is no difference
Option 2: When they are declared they reduce Net Income and when they are paid they reduce cash
Option 3: When they are declared they increase Net Income and when they are paid they reduce cash
Option 4: When they are declared they reduce Common Stock and when they are paid they increase Dividends Payable
Option 5: When they are declared they reduce Retained Earnings and when they are paid they reduce Dividends Payable