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

A statement of stockholders' equity discloses all of the following except:

Which of the following show the proper effect of a stock split and a stock dividend? Item Stock Split Stock Dividend A) Total paid-in capital Increase Increase B) Total retained earnings Decrease Decrease C) Total par value (common) Decrease Increase D) Par value per share Decrease No change

Evergreen Manufacturing Corporation purchased 5,000 shares of its own previously issued $10 par common stock for $115,000. As a result of this event,

A prior period adjustment for understatement of net income will

Retained earnings that are restricted are unavailable for dividends.

On December 31, 2015, Stock, Inc. has 4,000 shares of 6% $100 par value cumulative preferred stock and 60,000 shares of $10 par value common stock outstanding. On December 31, 2015, the directors declare a $20,000 cash dividend. The entry to record the declaration of the dividend would include:

Farmer Company reports the following amounts for 2015: Net income \ 135,000 Average stockholders' equity 500,000 Preferred dividends 15,000 Par value preferred stock 100,000 The 2015 rate of return on common stockholders' equity is

The par value of common stock must always be equal to its market value on the date the stock is issued.

Identify the effect the declaration and distribution of a stock dividend has on the par value per share. Par Value per Share

Restricting retained earnings for the cost of treasury stock purchased is a

When the selling price of treasury stock is greater than its cost, the company credits the difference to

A separate paid-in capital account is used to record each of the following except the issuance of

The person responsible for maintaining the company's cash position is the

Which of the following statements about a cash dividend is incorrect?

Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement.

When preferred stock is cumulative, preferred dividends not declared in a period are

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

The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is