The effect of the declaration of a cash dividend by the board of directors is to

Current maturities of long-term debt refers to the amount of interest on a note payable that must be paid in the current year.

True

False

A current liability must be paid out of current earnings.

True

False

Which one of the following events would not require a journal entry on a corporation's books?

2% stock dividend.

$1 per share cash dividend.

2-for-1 stock split.

100% stock dividend.

A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

True

False

The effect of the declaration of a cash dividend by the board of directors is to

Increase

Decrease

Liabilities Assets

Liabilities Stockholders' equity

Stockholders' equity Assets

Assets Liabilities