It is best to review many kinds of business documents

Which of the following statements is FALSE?

A) In perfect capital markets, holding fixed the investment policy of a firm, the firm's choice of dividend policy is irrelevant and does not affect the initial share price. B) In a perfect capital market, when a dividend is paid, the share price drops by the amount of the dividend when the stock begins to trade ex-dividend. C) In perfect capital markets, an open market share repurchase has no effect on the stock price, and the stock price is the same as the ex-dividend price if a dividend were paid instead. D) In perfect capital markets, investors are indifferent between the firm distributing funds via dividends or share repurchases. By reinvesting dividends or selling shares, they can replicate either payout method on their own.

A small village (which keeps its records on a calendar-year basis) issued $1 million of bonds on April 1, 2012

The first payment of principal was due April 1, 2013, but interest at 6 percent per annum on the outstanding debt was due on October 1, 2012 and April 1, 2013 . How much interest expenditure (expense) should the village recognize in its governmental fund and government-wide financial statements for the calendar year 2012? Fund Government-wide Statements Statements a. $30,000 $30,000 b. $30,000 $45,000 c. $30,000 $60,000 d. $45,000 $45,000