Question 1

The liability of a shareholder is usually limited to the shareholder's investment in the corporation.

Accepted Answer

A) True 
 B)False

Question 2

The declaration and distribution of a stock dividend will

Accepted Answer

A) increase total shareholders' equity. 
B) increase total assets. 
C) decrease total assets. 
D) have no effect on total assets. 
A) increase total shareholders' equity. 
B) increase total assets. 
C) decrease total assets. 
D) have no effect on total assets.

Question 3

Cash dividends are declared out of

Accepted Answer

A) Dividends Payable. 
B) Preferred Shares. 
C) Common Shares. 
D) Retained Earnings. 
A) Dividends Payable. 
B) Preferred Shares. 
C) Common Shares. 
D) Retained Earnings.

Question 4

On the dividend record date

Accepted Answer

A) a dividend becomes a current obligation. 
B) no entry is required. 
C) an entry may be required if it is a stock dividend. 
D) dividends payable is debited. 
A) a dividend becomes a current obligation. 
B) no entry is required. 
C) an entry may be required if it is a stock dividend. 
D) dividends payable is debited.

Question 5

Treasury shares consist of a corporation's own shares that have been reacquired and are being held for future reissue.

Accepted Answer

A) True 
 B)False

Question 6

When a company reacquires and retires its own shares, the shares are effectively restored to authorized but unissued status.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about a 2 for 1 stock split is not true?

Accepted Answer

A) The market value of the shares will probably decrease. 
B) A shareholder with 200 shares before the split owns 400 shares after the split. 
C) Legal capital per share is reduced to half of what it was before the split. 
D) Total share capital increases. 
A) The market value of the shares will probably decrease. 
B) A shareholder with 200 shares before the split owns 400 shares after the split. 
C) Legal capital per share is reduced to half of what it was before the split. 
D) Total share capital increases.

Question 8

The return on common shareholders' equity is calculated by dividing profit

Accepted Answer

A) by ending common shareholders' equity. 
B) by average common shareholders' equity. 
C) less preferred dividends by ending common shareholders' equity. 
D) less preferred dividends by average common shareholders' equity. 
A) by ending common shareholders' equity. 
B) by average common shareholders' equity. 
C) less preferred dividends by ending common shareholders' equity. 
D) less preferred dividends by average common shareholders' equity.

Question 9

Which of the following is not a right or preference associated with preferred shares?

Accepted Answer

A) The right to vote. 
B) First claim to dividends. 
C) Preference to corporate assets in case of liquidation. 
D) To receive dividends in arrears before common shareholders receive dividends. 
A) The right to vote. 
B) First claim to dividends. 
C) Preference to corporate assets in case of liquidation. 
D) To receive dividends in arrears before common shareholders receive dividends.

The liability of a shareholder is usually limited to the shareholder's investment in the corporation.

The declaration and distribution of a stock dividend will

Cash dividends are declared out of

On the dividend record date

Treasury shares consist of a corporation's own shares that have been reacquired and are being held for future reissue.

When a company reacquires and retires its own shares, the shares are effectively restored to authorized but unissued status.

Which of the following statements about a 2 for 1 stock split is not true?

The return on common shareholders' equity is calculated by dividing profit

Which of the following is not a right or preference associated with preferred shares?

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters

Exam 11: Reporting and Analyzing Shareholders Equity

The liability of a shareholder is usually limited to the shareholder's investment in the corporation.

The declaration and distribution of a stock dividend will

Cash dividends are declared out of

On the dividend record date

Treasury shares consist of a corporation's own shares that have been reacquired and are being held for future reissue.

When a company reacquires and retires its own shares, the shares are effectively restored to authorized but unissued status.

Which of the following statements about a 2 for 1 stock split is not true?

The return on common shareholders' equity is calculated by dividing profit

Which of the following is not a right or preference associated with preferred shares?

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters