Exam 11: Reporting and Analyzing Shareholders Equity

If the statement of financial position is prepared after a stock dividend has been declared but before it has been distributed, the stock dividend distributable would be reported in the

If the board of directors authorizes a $250,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

Preferred shares are generally issued to appeal to a larger segment of potential investors.

Accumulated other comprehensive income is reported in the shareholders' equity section of the statement of financial position for a publicly-traded company.

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

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

In the shareholders' equity section of the statement of financial position,

A retained earnings restriction would appear in the financial statements under

Which of the following statements reflects the transferability of ownership rights in a corporation?

Shareholders directly elect the corporation's

The liability for a cash dividend is recorded on the date of record, because it is on that date that the shareholders who will receive the dividend are identified.

Use the following information for questions On July 15, 2012, 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, 2012, to shareholders of record on July 31, 2012. -The effects of the journal entry to record the payment of the dividend on August 15, 2012, are to

When retained earnings are restricted, total retained earnings

The perception of double taxation results from

The trading of a corporation's shares on the secondary market has no impact on the corporation's financial position.

Limited liability of shareholders means

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

Which of the following is not a significant date with respect to dividends?

All of the following are normally found in a publicly-traded corporation's shareholders' equity section except

Use the following information for questions On July 15, 2012, 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, 2012, to shareholders of record on July 31, 2012. -The correct entry to be recorded on August 15, 2012 will include a