MBUS 300 final exam questions n
answers rated A+ 2025/2026
On which date would you make no journal entry?
Date of declaration of cash dividend.
Date of record of cash dividend.
Date of payment of cash dividend.
Date of declaring a stock dividend. - ANS ✔✔Date of record of cash dividend.
Baker Company has 200,000 shares of common stock outstanding. The company declares a
stock dividend of 58,000 shares. According to GAAP, this dividend should be treated as:
a small stock dividend.
a prior period adjustment.
a large stock dividend.
a purchase of treasury stock. - ANS ✔✔a large stock dividend.
Cash dividends are paid based on the number of shares which are
authorized.
issued.
,outstanding.
outstanding minus the number of treasury shares. - ANS ✔✔outstanding.
Treasury stock is
an asset representing a corporate investment in itself.
highly-valued stock owned by a corporation.
illegal for U.S. corporations.
a decrease of shareholders' equity. - ANS ✔✔a decrease of shareholders' equity.
Dividends in arrears
are preferred dividends that have been declared but not paid.
must be legally paid in the future.
are dividends that have not been declared on cumulative preferred stock.
are reported as a liability on the balance sheet until paid. - ANS ✔✔are dividends that have not
been declared on cumulative preferred stock.
Dividends are not paid on
noncumulative preferred stock.
nonparticipating preferred stock.
treasury common stock.
outstanding common shares. - ANS ✔✔treasury common stock.
, Dividends payable is recorded at the date of
issue.
record.
declaration.
payment. - ANS ✔✔declaration.
Which one of the following represents the economic effects of issuing a 2-for-1 stock split?
No effect on par value per share or retained earnings.
Decrease par value per share, and no effect on retained earnings.
No effect on par value per share, and decrease retained earnings.
Increase par value per share and retained earnings. - ANS ✔✔Decrease par value per share,
and no effect on retained earnings.
If preferred stock is cumulative, then
preferred dividends are a percentage of corporate profits.
dividends in arrears must be paid before common shareholders receive dividends.
dividends are a percentage of the market value of the preferred stock.
payment of dividends is legally guaranteed to shareholders each year. - ANS ✔✔dividends in
arrears must be paid before common shareholders receive dividends.
Contingent liabilities whose ultimate payment is highly probable and can be reasonably
estimated must be
answers rated A+ 2025/2026
On which date would you make no journal entry?
Date of declaration of cash dividend.
Date of record of cash dividend.
Date of payment of cash dividend.
Date of declaring a stock dividend. - ANS ✔✔Date of record of cash dividend.
Baker Company has 200,000 shares of common stock outstanding. The company declares a
stock dividend of 58,000 shares. According to GAAP, this dividend should be treated as:
a small stock dividend.
a prior period adjustment.
a large stock dividend.
a purchase of treasury stock. - ANS ✔✔a large stock dividend.
Cash dividends are paid based on the number of shares which are
authorized.
issued.
,outstanding.
outstanding minus the number of treasury shares. - ANS ✔✔outstanding.
Treasury stock is
an asset representing a corporate investment in itself.
highly-valued stock owned by a corporation.
illegal for U.S. corporations.
a decrease of shareholders' equity. - ANS ✔✔a decrease of shareholders' equity.
Dividends in arrears
are preferred dividends that have been declared but not paid.
must be legally paid in the future.
are dividends that have not been declared on cumulative preferred stock.
are reported as a liability on the balance sheet until paid. - ANS ✔✔are dividends that have not
been declared on cumulative preferred stock.
Dividends are not paid on
noncumulative preferred stock.
nonparticipating preferred stock.
treasury common stock.
outstanding common shares. - ANS ✔✔treasury common stock.
, Dividends payable is recorded at the date of
issue.
record.
declaration.
payment. - ANS ✔✔declaration.
Which one of the following represents the economic effects of issuing a 2-for-1 stock split?
No effect on par value per share or retained earnings.
Decrease par value per share, and no effect on retained earnings.
No effect on par value per share, and decrease retained earnings.
Increase par value per share and retained earnings. - ANS ✔✔Decrease par value per share,
and no effect on retained earnings.
If preferred stock is cumulative, then
preferred dividends are a percentage of corporate profits.
dividends in arrears must be paid before common shareholders receive dividends.
dividends are a percentage of the market value of the preferred stock.
payment of dividends is legally guaranteed to shareholders each year. - ANS ✔✔dividends in
arrears must be paid before common shareholders receive dividends.
Contingent liabilities whose ultimate payment is highly probable and can be reasonably
estimated must be
