Wildcat, Inc

question 26

Multiple Choice

Wildcat, Inc. declared a 10% stock dividend when it had 150,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to:

• A) Retained Earnings $150,000.
• B) Paid-in Capital in Excess of Par $135,000.
• C) Common Stock $150,000.
• D) Retained Earnings $15,000.

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Definitions:

Confidence Interval

A range of values, derived from sample data, that is believed to contain the value of an unknown population parameter with a specified level of confidence.

Population Variance

The average of the squared differences between each data point in a population and the mean of the population.

Hypotheses

Statements made for the purpose of testing with statistical analysis, to see if there is enough evidence to support a particular belief or theory.

Significance Level

A threshold in hypothesis testing that determines the probability of rejecting a true null hypothesis, denoted as alpha (α).