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AC216 Accounting II Week 5 Quiz Answers (Herzing)

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AC216 Accounting II Week 5 Quiz Answers (Herzing)

  1. When a dividend is paid in cash, it is known as a
  2. Capital resulting from the retention of earnings should be entered in an account with an appropriate title such as

  3. The Balance of income summary account of a corporation is transferred to which of the following accounts?

  4. A dividend is declared by

  5. An entry to appropriate a portion of retained earnings to finance a future plant expansion would include a debit to 

  6. The owner  of 100 shares of stock of a corporation with 2,000 shares of stock outstanding has a 5% interest in the total stockholders' equity. If a 20% stock dividend is declared and distributed, that stockholder would own which of the following number of shares?

  7. A resolution  by the board of directors to set aside a part of the credit balance of the retained earnings account for a specific use is called

  8. To explain the change in the amount of the retained earnings between  successive balance sheet dates, it is customary to prepare a(n)

  9. When a stock dividend is distributed, the account to be credited would be

  10. An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par or stated value is known as a

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