Matching
Match each transaction to its effect
Premises:
Issued debt to finance the purchase of property
Issued common stock to finance the purchase of property
Used cash resulting from profits to finance the purchase of property
Declared dividends to shareholders
Paid the previously declared dividends
Skipped dividends on cumulative preferred stock
Declared and paid a 10% stock dividend
Declared and paid a 200% stock dividend
Distributed a two-for-one stock split
Responses:
Decrease in debt/equity ratio
Increase in debt/equity ratio
Does not change debt/equity ratio
Correct Answer:
Premises:
Responses:
Issued debt to finance the purchase of property
Issued common stock to finance the purchase of property
Used cash resulting from profits to finance the purchase of property
Declared dividends to shareholders
Paid the previously declared dividends
Skipped dividends on cumulative preferred stock
Declared and paid a 10% stock dividend
Declared and paid a 200% stock dividend
Distributed a two-for-one stock split
Premises:
Issued debt to finance the purchase of property
Issued common stock to finance the purchase of property
Used cash resulting from profits to finance the purchase of property
Declared dividends to shareholders
Paid the previously declared dividends
Skipped dividends on cumulative preferred stock
Declared and paid a 10% stock dividend
Declared and paid a 200% stock dividend
Distributed a two-for-one stock split
Responses:
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