Exam 11: Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Jason Thomas has invested $200,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Thomas stand to lose?

A debit balance in the Retained Earnings account is identified as a deficit.

Car and Auto Sisters had retained earnings of $18,000 on the balance sheet but disclosed in the footnotes that $3,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?

Each of the following decreases total stockholders' equity except a

A small stock dividend is defined as

A stockholders' equity statement shows

A statement of comprehensive income is presented in

Corporations generally issue stock dividends in order to

Dividends may be declared and paid in cash or stock.

Which of the following represents the largest number of common shares?

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

The following selected amounts are available for Clark Company. Retained earnings (beginning) \ 900 Net loss 150 Cash dividends declared 100 Stock dividends declared 100 What is its ending retained earnings balance?

A stockholder has the right to vote in the election of the board of directors.

A retained earnings statement shows the same information as a corporation income statement.

Carson Packaging Corporation began business in 2015 by issuing 30,000 shares of $3 par common stock for $8 per share and 12,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2015 balance sheet, Carson Packaging would report

Regular dividends are declared out of

eris, Inc. has 1,000 shares of 6%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2015. What is the annual dividend on the preferred stock?

The number of common shares outstanding can never be greater than the number of shares issued.

The chief accounting officer in a corporation is the

The two ways that a corporation can be classified by purpose are