Question 1

Small stock dividends are recorded at market value.

Accepted Answer

A) True 
 B)False

Question 2

A liquidating dividend is:

Accepted Answer

A) Only declared when a corporation closes down. 
B) A return of a portion of the original investment back to the stockholders. 
C) Not allowed under federal law. 
D) Only paid in assets other than cash. 
E) Only paid in shares of stock. 
A) Only declared when a corporation closes down. 
B) A return of a portion of the original investment back to the stockholders. 
C) Not allowed under federal law. 
D) Only paid in assets other than cash. 
E) Only paid in shares of stock.

Question 3

The number of shares that a corporation's charter allows it to sell is the ________ stock.

Accepted Answer

The answer of The number of shares that a corporation's...

Question 4

A company has earnings per share of $6.50.Its dividend per share is $0.50,and its market price per share is $80.Its price-earnings ratio equals 13.

Accepted Answer

A) True 
 B)False

Question 5

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

Accepted Answer

A) True 
 B)False

Question 6

Prior to September 30,a company has never had any treasury stock transactions.A company repurchased 1,000 shares of its $2 par common stock on September 30 for $20 per share.On October 2,it reissued 400 of these shares at $21 per share.On October 12,it reissued the remaining 600 shares at $19 per share.The journal entry to record the reissuance of the shares on October 12 would be:

Accepted Answer

A) Debit Cash,$11,400; Credit Treasury Stock,$800; Credit Paid-in Capital,Treasury Stock,$10,600. 
B) Debit Cash,$11,400; Debit Paid-in Capital in Excess of Par Value,Common Stock,$600; Credit Treasury Stock,$12,000. 
C) Debit Cash,$11,400; Debit Paid-in Capital in Excess of Par Value,Common Stock,$400; Debit Retained Earnings,$200; Credit Treasury Stock,$12,000. 
D) Debit Cash,$11,400; Debit Paid-in Capital,Treasury Stock,$600; Credit Treasury Stock,$12,000. 
E) Debit Cash,$11,400; Debit Paid-in Capital,Treasury Stock,$400; Debit Retained Earnings,$200; Credit Treasury Stock,$12,000. 
A) Debit Cash,$11,400; Credit Treasury Stock,$800; Credit Paid-in Capital,Treasury Stock,$10,600. 
B) Debit Cash,$11,400; Debit Paid-in Capital in Excess of Par Value,Common Stock,$600; Credit Treasury Stock,$12,000. 
C) Debit Cash,$11,400; Debit Paid-in Capital in Excess of Par Value,Common Stock,$400; Debit Retained Earnings,$200; Credit Treasury Stock,$12,000. 
D) Debit Cash,$11,400; Debit Paid-in Capital,Treasury Stock,$600; Credit Treasury Stock,$12,000. 
E) Debit Cash,$11,400; Debit Paid-in Capital,Treasury Stock,$400; Debit Retained Earnings,$200; Credit Treasury Stock,$12,000.

Question 7

The following data were reported by a corporation:   The number of outstanding shares is:

Accepted Answer

A) 12,000. 
B) 15,000. 
C) 17,000. 
D) 20,000. 
E) 23,000. 
A) 12,000. 
B) 15,000. 
C) 17,000. 
D) 20,000. 
E) 23,000.

Question 8

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company has no preferred stock.There were no other stock transactions.The company's earnings per share is:

Accepted Answer

A) $1.65. 
B) $1.59. 
C) $44.00. 
D) $26.67. 
E) $1.71. 
A) $1.65. 
B) $1.59. 
C) $44.00. 
D) $26.67. 
E) $1.71.

Question 9

A company's stock is selling for $35.70 per share at year-end.This current year it paid shareholders a $1.43 per share cash dividend,reported earnings per share of $11.00,and had 750,000 common shares outstanding at year-end.Calculate the company's dividend yield.

Accepted Answer

Dividend Yield = Cas

Question 10

Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends.   The amount of dividends paid to preferred and common shareholders in year 1 is:

Accepted Answer

A) $200 preferred; $19,800 common. 
B) $4,000 preferred; $16,000 common. 
C) $17,000 preferred; $3,000 common. 
D) $10,000 preferred; $10,000 common. 
E) $20,000 preferred; $0 common. 
A) $200 preferred; $19,800 common. 
B) $4,000 preferred; $16,000 common. 
C) $17,000 preferred; $3,000 common. 
D) $10,000 preferred; $10,000 common. 
E) $20,000 preferred; $0 common.

Question 11

A company has 50,000 shares of common stock outstanding.The stockholders' equity applicable to common shares is $1,470,000,and the par value per common share is $5.The book value per share is:

Accepted Answer

A) $4.75. 
B) $14.70. 
C) $10.00. 
D) $29.40. 
E) $47.50. 
A) $4.75. 
B) $14.70. 
C) $10.00. 
D) $29.40. 
E) $47.50.

Question 12

Stocks that pay relatively large cash dividends on a regular basis are called:

Accepted Answer

A) Small capital stocks. 
B) Mid capital stocks. 
C) Growth stocks. 
D) Large capital stocks. 
E) Income stocks. 
A) Small capital stocks. 
B) Mid capital stocks. 
C) Growth stocks. 
D) Large capital stocks. 
E) Income stocks.

Question 13

The stockholders' equity section of a corporation's balance sheet follows:
   (1)Assuming that no dividends are in arrears,compute the book values per preferred share and per common share.
(2)Assuming that one year of cumulative preferred dividends is in arrears,compute the book values per preferred share and per common share.

Accepted Answer

The answer of The stockholders' equity section of a corporation's...

Question 14

Percy Corporation was formed on January 1.The corporate charter authorized 100,000 shares of $10 par value common stock.During the first month of operation,the corporation issued 400 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation.The entry to record this transaction would include:

Accepted Answer

A) A debit to Organization Expenses for $4,000. 
B) A debit to Organization Expenses for $5,000. 
C) A credit to Common Stock for $5,000. 
D) A credit to Paid-in Capital in Excess of Par Value,Common Stock for $5,000. 
E) A debit to Paid-in Capital in Excess of Par Value,Common Stock for $2,000. 
A) A debit to Organization Expenses for $4,000. 
B) A debit to Organization Expenses for $5,000. 
C) A credit to Common Stock for $5,000. 
D) A credit to Paid-in Capital in Excess of Par Value,Common Stock for $5,000. 
E) A debit to Paid-in Capital in Excess of Par Value,Common Stock for $2,000.

Question 15

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by equal amounts.

Accepted Answer

A) True 
 B)False

Question 16

Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

Accepted Answer

A) Participating preferred stock. 
B) Callable preferred stock. 
C) Cumulative preferred stock. 
D) Convertible preferred stock. 
E) Noncumulative preferred stock. 
A) Participating preferred stock. 
B) Callable preferred stock. 
C) Cumulative preferred stock. 
D) Convertible preferred stock. 
E) Noncumulative preferred stock.

Question 17

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

Accepted Answer

A) True 
 B)False

Question 18

Prior to September 30,a company has never had any treasury stock transactions.A company repurchased 1,000 shares of its $2 par common stock on September 30 for $20 per share.On October 2,it reissued 400 of these shares at $21 per share.On October 12,it reissued the remaining 600 shares at $19 per share.The journal entry to record the purchase of the shares on September 30 would be:

Accepted Answer

A) Debit Treasury Stock,$20,000; Credit Cash,$20,000. 
B) Debit Common Stock,$20,000; Credit Cash,$20,000. 
C) Debit Cash,$20,000; Credit Treasury Stock,$20,000. 
D) Debit Cash,$20,000; Credit Common Stock,$2,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$18,000. 
E) Debit Cash,$8,400,Credit Treasury Stock,$8,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$400. 
A) Debit Treasury Stock,$20,000; Credit Cash,$20,000. 
B) Debit Common Stock,$20,000; Credit Cash,$20,000. 
C) Debit Cash,$20,000; Credit Treasury Stock,$20,000. 
D) Debit Cash,$20,000; Credit Common Stock,$2,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$18,000. 
E) Debit Cash,$8,400,Credit Treasury Stock,$8,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$400.

Question 19

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Accepted Answer

A) True 
 B)False

Question 20

The statement of changes in stockholders' equity:

Accepted Answer

A) Is part of the statement of retained earnings. 
B) Shows only the ending balances in stockholders' equity. 
C) Describes changes in paid-in capital and retained earnings subcategories. 
D) Does not include changes in treasury stock. 
E) Is reported by very few companies. 
A) Is part of the statement of retained earnings. 
B) Shows only the ending balances in stockholders' equity. 
C) Describes changes in paid-in capital and retained earnings subcategories. 
D) Does not include changes in treasury stock. 
E) Is reported by very few companies.

Small stock dividends are recorded at market value.

A liquidating dividend is:

The number of shares that a corporation's charter allows it to sell is the ________ stock.

A company has earnings per share of $6.50.Its dividend per share is $0.50,and its market price per share is $80.Its price-earnings ratio equals 13.

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

The following data were reported by a corporation: The number of outstanding shares is:

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company has no preferred stock.There were no other stock transactions.The company's earnings per share is:

A company's stock is selling for $35.70 per share at year-end.This current year it paid shareholders a $1.43 per share cash dividend,reported earnings per share of $11.00,and had 750,000 common shares outstanding at year-end.Calculate the company's dividend yield.

A company has 50,000 shares of common stock outstanding.The stockholders' equity applicable to common shares is $1,470,000,and the par value per common share is $5.The book value per share is:

Stocks that pay relatively large cash dividends on a regular basis are called:

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by equal amounts.

Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

The statement of changes in stockholders' equity:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 11: Reporting and Analyzing Equity

Small stock dividends are recorded at market value.

A liquidating dividend is:

The number of shares that a corporation's charter allows it to sell is the ________ stock.

A company has earnings per share of $6.50.Its dividend per share is $0.50,and its market price per share is $80.Its price-earnings ratio equals 13.

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

The following data were reported by a corporation: The number of outstanding shares is:

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company has no preferred stock.There were no other stock transactions.The company's earnings per share is:

A company's stock is selling for $35.70 per share at year-end.This current year it paid shareholders a $1.43 per share cash dividend,reported earnings per share of $11.00,and had 750,000 common shares outstanding at year-end.Calculate the company's dividend yield.

A company has 50,000 shares of common stock outstanding.The stockholders' equity applicable to common shares is $1,470,000,and the par value per common share is $5.The book value per share is:

Stocks that pay relatively large cash dividends on a regular basis are called:

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by equal amounts.

Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

The statement of changes in stockholders' equity:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters