Quirk Corporation Issued a 100% Share Dividend of Its Ordinary

question 51

Multiple Choice

Quirk Corporation issued a 100% share dividend of its ordinary shares which had a par value of $10 before and after the dividend.At what amount should retained earnings be capitalized for the additional shares issued?

• A)There should be no capitalization of retained earnings.
• B)Par value
• C)Fair value on the declaration date
• D)Fair value on the payment date

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Definitions:

Reactivity

The tendency of participants to change their behavior due to the awareness of being observed or studied.

Internal Consistency Reliability

Reliability assessed with data collected at one point in time with multiple measures of a psychological construct. A measure is reliable when the multiple measures provide similar results.

Interrater Reliability

The degree of agreement among raters or judges, ensuring consistency in the assessment or observation of a variable.

Test-retest Reliability

Test-retest reliability is a measure of the consistency of a psychological test or assessment when administered to the same individuals at two different points in time.