1. When the cost of a short-term held-to-maturity debt security is different from the maturity value, the difference is amortized over the remaining life of the security. True or False
2. When payment for cash dividends is made, the transaction would be a:
Credit to Dividend Expense and a credit to Cash
Debit to Dividend Expense and a credit to Cash
Credit to Dividend Payable and a credit to Cash
Debit to Dividend Payable and a credit to Cash
3. A basic present value concept is that cash paid or received in the future is worth less than the same amount of cash today.
True or False
4. When dividends are declared the par value of the company's stock will:
Increase
Decrease
Remain the same
Change by the average percentage of all dividends declared over the years