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

If an investment firm underwrites a stock issue, the

Paid-In Capital in Excess of Stated Value

When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock becomes legal capital.

The accounting is essentially the same under IFRS and GAAP for

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

Outstanding stock of the Zone Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 6%, $10 par noncumulative preferred stock. In 2014, Zone declared and paid dividends of $2,000. In 2015, Zone declared and paid dividends of $6,000. How much of the 2015 dividend was distributed to preferred shareholders?

Dividends may be declared and paid in cash or stock.

IFRS treats the purchase of treasury stock as any of the following except

The chief accounting officer in a corporation is the

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Many companies prepare a stockholders' equity statement instead of presenting a detailed stockholders' equity section in the balance sheet.

The stockholders' equity statement shows the changes in each stockholders' equity account and in total stockholders' equity during the year.

When common stock is issued for services or non-cash assets, cost should be

Era Company has 3,000 shares of 6%, $100 par non-cumulative preferred stock outstanding at December 31, 2015. No dividends have been paid on this stock for 2014 or 2015. Dividends in arrears at December 31, 2015 total

What is ordinarily the first step in the formation of a corporation?

Of the various dividends types, the two most common types in practice are

If stock is issued for less than par value, the account

King Corporation had net income of $260,000 and paid dividends of $40,000 to common stockholders and $10,000 to preferred stockholders in 2015. King Corporation's common stockholders' equity at the beginning and end of 2015 was $870,000 and $1,130,000, respectively. There are 100,000 weighted-average shares of common stock outstanding. King Corporation's return on common stockholders' equity was

Which one of the following is not an ownership right of a stockholder in a corporation?

In the stockholders' equity section, paid-in capital and retained earnings are reported and the specific sources of paid-in capital are identified.