Exam 11: Reporting and Analyzing Stockholders Equity

A corporation is not an entity that is separate and distinct from its owners.

The main purpose of a stock split is to increase the marketability of the shares.

For last year, Roxy Corporation reported profit of $500,000, and paid $125,000 in dividends to the 250,000 preferred shares issued.The weighted average of common shares was 1,500,000 shares.Roxy's earnings per share was

The effect of the declaration of a cash dividend is to

A stock split results in a transfer at market value from retained earnings to share capital.

A company may reacquire its own shares for all of the following reasons except to

Legal capital

Based on the following account balances, what is the total shareholders' equity?

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Placing a restriction on retained earnings will

An initial public offering occurs the first time a corporation sells shares to the public.

The market capitalization of a company is calculated by multiplying the number of shares authorized by the share price at any given date.

On the dividend record date

A retained earnings restriction would appear in the financial statements under

The board of directors of Wessex Inc.declared a cash dividend on November 15, 2015, to be paid on December 15, 2015, to shareholders owning shares on November 30, 2015.Given these facts, the date of November 30, 2015, is referred to as the

Legal capital cannot be distributed to the shareholders, but must remain invested in the corporation for the protection of its creditors.

Which one of the following would not be considered an advantage of the corporate form of organization?

Corporations generally issue stock dividends in order to

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

Total comprehensive income equals profit plus other comprehensive income.