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For each of the following statements regarding dividends, indicate whether it is true or false. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A. Cash and stock dividends reduce retained earnings.unanswered
B. Dividends payable is recorded at the time a cash dividend is declared.unanswered
C. The date of record is the date a cash dividend is paid to stockholders.unanswered
D. Stock dividends help keep the market price of stock affordable.unanswered

Answer :

Dividends refers to the regular payments of profit made to stockholders who own part of the firm shares.

  • It is true that the cash and stock dividends reduce retained earnings

  • It is true that dividends payable is recorded at the time a cash dividend is declared.

  • It is false that date of record is the date a cash dividend is paid to stockholders.

  • It is true thato t the stock dividends help keep the market price of stock affordable.

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