You Should Do All of the Following to Prevent Written

question 16

Multiple Choice

You should do all of the following to prevent written checks from being altered except:

• A) Count the number of checks you wrote this month
• B) Put a $ sign in front of the amount in the currency box
• C) Make a note in the memo line for your own reference
• D) Start your written amount on the far left

Comprehend the role of the board of directors in declaring dividends and the differentiation between cash and stock dividends.

Understand the accounting treatment for declaring and distributing stock dividends.

Differentiate between common stock, preferred stock, treasury stock, and their characteristics.

Prepare journal entries for transactions involving cash dividends, stock dividends, and treasury stocks.

---

Definitions:

Service Charge

A Service Charge is a fee collected to pay for services related to a primary product or service, such as handling fees, maintenance, or repair services.

Receivables

Money owed to a company by its customers or others for goods or services that have been delivered or used but not yet paid for.

Cash Realizable Value

The net amount of cash that is expected to be generated from the conversion of assets.

Operating Cycle

The period of time it takes for a company to purchase inventory, sell it, and turn the sales back into cash.