Question1: Which one of the following events would not require a formal journal entry on a corporation’s books?
[A] 2% stock dividend
[B] $1 per share cash dividend
[C] 2 for 1 stock split
[D] 100% stock dividend
Question2: A prior period adjustment that corrects income of a prior period requires that an entry be made to
[A] The retained earnings account
[B] An asset account
[C] An income statement account
[D] A current year revenue or expense account
Question3: Which one of the following is not necessary in order for a corporation to pay a cash dividend?
[A] Declaration of dividends by the board of directors
[B] Retained earnings
[C] Adequate cash
[D] Approval of stockholders
Question4: The discontinued operations section of the income statement refers to
[A] Obsolete equipment and discontinued inventory items
[B] The disposal of a significant segment of a business
[C] Discontinuance of a product line
[D] The income or loss on products that have been completed and sold