Question 1

Which of the following statements about retained earnings is true?

Accepted Answer

A)  Retained earnings is the amount of cash that the company has retained since its inception. 
B)  Retained earnings is the amount of creditors' claims on assets. 
C)  Retained earnings is increased when treasury stock is reissued at a price greater than its cost. 
D)  Retained earnings is decreased by cash dividends and stock dividends. 
A)  Retained earnings is the amount of cash that the company has retained since its inception. 
B)  Retained earnings is the amount of creditors' claims on assets. 
C)  Retained earnings is increased when treasury stock is reissued at a price greater than its cost. 
D)  Retained earnings is decreased by cash dividends and stock dividends.

Question 2

Which of the following statements is NOT true of a corporation?

Accepted Answer

A)  A corporation is taxed as a separate legal entity. 
B)  A corporation has easy transferability of ownership. 
C)  A corporation may have the ability to raise large amounts of capital. 
D)  A corporation's owners have unlimited liability. 
A)  A corporation is taxed as a separate legal entity. 
B)  A corporation has easy transferability of ownership. 
C)  A corporation may have the ability to raise large amounts of capital. 
D)  A corporation's owners have unlimited liability.

Which of the following statements about retained earnings is true?

Which of the following statements is NOT true of a corporation?

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control and Financial Reporting for Cash and Merchandise Sales

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables, Bad Debt Expense, and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

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Exam 11: Reporting and Interpreting Stockholders Equity

Which of the following statements about retained earnings is true?

Which of the following statements is NOT true of a corporation?

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control and Financial Reporting for Cash and Merchandise Sales

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables, Bad Debt Expense, and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters