Stock dividends and stock splits differ in that
Answer(s): C
A stock split does not involve any accounting entries. Instead, a larger number of new shares are issued to replace and retire all outstanding shares.
Which of the following would be classified a cash inflow from investing activities?
Answer(s): D
All other responses qualify as cash flows from financing activities.
Answer(s): B
All responses qualify as cash inflows from investing activities.
Under the treasury stock method, primary earnings per share data are computed as if options and warrants (outstanding for the entire year) were exercised at the
Answer(s): E
The treasury stock method assumes the exercise of outstanding options and warrants at the beginning of the period or at time of issuance, if later. It also assumes that the proceeds from the exercise were used to purchase common stock at the average market price during the period.
Retained earnings represent:
Any undistributed net income during a period is swept into the "retained earnings" account. Thus, retained earnings at any point represent the cumulative undistributed earnings since the company was formed. This account is the chief source of distribution of dividends and other payments to shareholders.
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