Question 1

The date on which a cash dividend becomes a binding legal obligation is on the

Accepted Answer

A) declaration date. 
B) date of record. 
C) payment date. 
D) last day of the fiscal year. 
A) declaration date. 
B) date of record. 
C) payment date. 
D) last day of the fiscal year.

Question 2

The number of shares that may be issued according to the corporation's articles of incorporation is referred to as the

Accepted Answer

A) authorized shares. 
B) issued shares. 
C) unissued shares. 
D) redeemable shares. 
A) authorized shares. 
B) issued shares. 
C) unissued shares. 
D) redeemable shares.

Question 3

Identify the effect the declaration of a cash dividend and a stock dividend has on the total shareholders' equity of a corporation:

Accepted Answer

The answer of Identify the effect the declaration of a...

Question 4

Irwin Inc.had 300,000 common shares before a stock split occurred and 600,000 shares after the stock split.The stock split was

Accepted Answer

A) 1 for 2. 
B) 4 for 1. 
C) 1 for 4. 
D) 2 for 1. 
A) 1 for 2. 
B) 4 for 1. 
C) 1 for 4. 
D) 2 for 1.

Question 5

The board of directors must assign a per share value to a stock dividend declared that is equal to the

Accepted Answer

A) average cost. 
B) zero. 
C) original issue price. 
D) fair value. 
A) average cost. 
B) zero. 
C) original issue price. 
D) fair value.

Question 6

Two classifications appearing in the share capital section of the statement of financial position are

Accepted Answer

A) dividends payable and dividends distributable. 
B) share capital and retained earnings. 
C) preferred shares and common shares. 
D) contributed capital and retained earnings. 
A) dividends payable and dividends distributable. 
B) share capital and retained earnings. 
C) preferred shares and common shares. 
D) contributed capital and retained earnings.

Question 7

Which of the following shows the proper effect of a stock split and a stock dividend?

Accepted Answer

The answer of Which of the following shows the proper...

Question 8

Most companies in Canada have an unlimited amount of authorized shares.

Accepted Answer

A) True 
 B)False

Question 9

Corporations reporting under IFRS have the option of preparing either a statement of changes in equity or a statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 10

The journal entry to record the declaration of a stock dividend includes

Accepted Answer

A) a credit to Stock Dividends Distributable. 
B) a credit to Stock Dividends Payable. 
C) a credit to Stock Dividends. 
D) a credit to Cash. 
A) a credit to Stock Dividends Distributable. 
B) a credit to Stock Dividends Payable. 
C) a credit to Stock Dividends. 
D) a credit to Cash.

Question 11

The payout ratio is calculated by dividing

Accepted Answer

A) total cash dividends paid by retained earnings. 
B) dividends paid per share by profit. 
C) total cash dividends paid by profit. 
D) dividends paid per share by year-end share price. 
A) total cash dividends paid by retained earnings. 
B) dividends paid per share by profit. 
C) total cash dividends paid by profit. 
D) dividends paid per share by year-end share price.

Question 12

All of the following are advantages of the corporate form of organization except

Accepted Answer

A) government regulation. 
B) reduced income tax. 
C) ease of transfer of ownership. 
D) continuous life. 
A) government regulation. 
B) reduced income tax. 
C) ease of transfer of ownership. 
D) continuous life.

Question 13

Record share transactions.

Accepted Answer

If only one class of shares is issued, t

Question 14

Use the following information for questions 
On July 15, 2015, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares.The dividend is to be paid on August 15, 2015, to shareholders of record on July 31, 2015.
-The correct entry to be recorded on August 15, 2015 will include a

Accepted Answer

A) debit to Cash Dividends. 
B) credit to Retained Earnings. 
C) credit to Dividends Payable. 
D) debit to Dividends Payable. 
A) debit to Cash Dividends. 
B) credit to Retained Earnings. 
C) credit to Dividends Payable. 
D) debit to Dividends Payable.

Question 15

When setting the price of a new share issue, a corporation does not need to consider

Accepted Answer

A) future profit. 
B) expected dividend rate. 
C) current financial position. 
D) future trading on the secondary market. 
A) future profit. 
B) expected dividend rate. 
C) current financial position. 
D) future trading on the secondary market.

Question 16

Which of the following would not affect the balance of the Retained Earnings account?

Accepted Answer

A) profit 
B) stock dividend 
C) stock split 
D) cash dividend 
A) profit 
B) stock dividend 
C) stock split 
D) cash dividend

Question 17

The declaration of a stock dividend will

Accepted Answer

A) increase share capital. 
B) change total shareholders' equity. 
C) increase total liabilities. 
D) increase total assets. 
A) increase share capital. 
B) change total shareholders' equity. 
C) increase total liabilities. 
D) increase total assets.

Question 18

Ford Harrison has invested $650,000 in a corporation.The corporation does not do well and must declare bankruptcy.What amount does Harrison stand to lose?

Accepted Answer

A) up to his total investment of $650,000 
B) zero 
C) the $650,000 plus any personal assets the creditors demand 
D) $325,000 
A) up to his total investment of $650,000 
B) zero 
C) the $650,000 plus any personal assets the creditors demand 
D) $325,000

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A shareholder owning common shares has the right to vote in the election of the board of directors.

Accepted Answer

A) True 
 B)False

The date on which a cash dividend becomes a binding legal obligation is on the

The number of shares that may be issued according to the corporation's articles of incorporation is referred to as the

Identify the effect the declaration of a cash dividend and a stock dividend has on the total shareholders' equity of a corporation:

Irwin Inc.had 300,000 common shares before a stock split occurred and 600,000 shares after the stock split.The stock split was

The board of directors must assign a per share value to a stock dividend declared that is equal to the

Two classifications appearing in the share capital section of the statement of financial position are

Which of the following shows the proper effect of a stock split and a stock dividend?

Most companies in Canada have an unlimited amount of authorized shares.

Corporations reporting under IFRS have the option of preparing either a statement of changes in equity or a statement of retained earnings.

The journal entry to record the declaration of a stock dividend includes

The payout ratio is calculated by dividing

All of the following are advantages of the corporate form of organization except

Record share transactions.

When setting the price of a new share issue, a corporation does not need to consider

Which of the following would not affect the balance of the Retained Earnings account?

The declaration of a stock dividend will

Ford Harrison has invested $650,000 in a corporation.The corporation does not do well and must declare bankruptcy.What amount does Harrison stand to lose?

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

A shareholder owning common shares has the right to vote in the election of the board of directors.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Long-Lived Assets

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Filters

Exam 11: Reporting and Analyzing Stockholders Equity

The date on which a cash dividend becomes a binding legal obligation is on the

The number of shares that may be issued according to the corporation's articles of incorporation is referred to as the

Identify the effect the declaration of a cash dividend and a stock dividend has on the total shareholders' equity of a corporation:

Irwin Inc.had 300,000 common shares before a stock split occurred and 600,000 shares after the stock split.The stock split was

The board of directors must assign a per share value to a stock dividend declared that is equal to the

Two classifications appearing in the share capital section of the statement of financial position are

Which of the following shows the proper effect of a stock split and a stock dividend?

Most companies in Canada have an unlimited amount of authorized shares.

Corporations reporting under IFRS have the option of preparing either a statement of changes in equity or a statement of retained earnings.

The journal entry to record the declaration of a stock dividend includes

The payout ratio is calculated by dividing

All of the following are advantages of the corporate form of organization except

Record share transactions.

When setting the price of a new share issue, a corporation does not need to consider

Which of the following would not affect the balance of the Retained Earnings account?

The declaration of a stock dividend will

Ford Harrison has invested $650,000 in a corporation.The corporation does not do well and must declare bankruptcy.What amount does Harrison stand to lose?

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

A shareholder owning common shares has the right to vote in the election of the board of directors.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Long-Lived Assets

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Filters