Accounting / Stocks & Dividends

When a board of directors declares a cash dividend, it authorizes the distribution of ____.

Cash to its stock holders

_____ is stock that a corporation has issued and then reacquired.

Treasury Stock

A cash distribution of earnings by a corporation to its stockholders is a

cash dividend

The date of _______ is the date the board of directors formally authorizes the payment of the dividend. (incurs liability)

declaration

No ____ are paid on the shares of treasury stock.

dividends

When a board of directors declares a stock dividend, it authorizes the distribution of ____.

its stock

____ are one-time expenses related to the formation of the corporation and will not be paid again at a later date

organizational expenses

The date of ______ is the date the corporation will pay the dividend to the stockholders who owned the stock on the date of record.

payment

The date of ______ is the date the corporation uses to determine which stockholders will receive the dividend.

record

Declaring a cash dividend or a stock dividend reduces the ______ of a corporation

retained earnings

A ________ is a distribution of shares of stock to stockholders.

stock dividend

A major objective of a _____ is to reduce the market price per share of the stock.

stock split