Q1: When a dividend is declared, the accounts debited and credited are:

a.) dividend and divdend payable.

b.) dividend payable and cash in bank.

c.) retained earning and dividends.

d.) cash and dividend payable.

Q2: on the date of record of dividend, the accounts to be debited and credited are:

a.) dividend and dividend payable

b.) dividend pauable and cash in bank

c.) no journal entry is made

d.) retained earnings and dividend

Q3: the charter of a publicly held corporation provides:

a.) a list of the board of directors

b.) the legal permission to operare the business

c.) the list of the management

d.) the rate of dividend

Q4: the share of profit distributed to stockholders is called:

a.) revenue

b.) profit

c.) dividends

d.) retained earnings

Q5: which method is used to distrubute dividends to common share holders?

a.) fixed method

b.) variable method

c.) random method

d.) negotiable method

Q6: Generally, a preferred stock is issued at:

a.) a par value of share

b.) a premium

c.) dividends

d.) none of the above