Exam 11: Reporting and Analyzing Stockholders Equity

A detailed stockholders' equity section in the balance sheet will list the names of individuals who are eligible to receive dividends on the date of record.

Danley Corporation began business by issuing 200,000 shares of $5 par value common stock for $24 per share.During its first year, the corporation sustained a net loss of $40,000.The year-end balance sheet would show

Cash dividends are not a liability until they are declared by the board of directors.

The term residual claim refers to a stockholders' right to

The following information pertains to Marsh Company.Assume that all balance sheet amounts represent average balance figures. What is Marsh's payout ratio?

A corporation purchases 20,000 shares of its own $20 par common stock for $35 per share, recording it at cost.What will be the effect on total stockholders' equity?

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

The declaration of a small stock dividend will

A disadvantage of the corporate form of organization is

Brewer Inc.has 5,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2019.The board of directors declared and paid a $12,000 dividend in 2019.In 2020, A total of $60,000 in dividends are declared and paid.What are the dividends received by the preferred stockholders in 2020?

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2020.The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020.The effects of the journal entry to record the declaration of the dividend on July 15, 2020, are to

The following information pertains to Marsh Company.Assume that all balance sheet amounts represent average balance figures. What is Marsh's return on common stockholders' equity?

The issuance of common stock affects both paid-in capital and retained earnings.

Berman Inc.has 6,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020.The board of directors declared and paid a $12,000 dividend in 2019.In 2020, $72,000 of dividends are declared and paid.What are the dividends received by the common stockholders in 2020?

The officer that is generally responsible for maintaining the cash position of the corporation is the

The authorized stock of a corporation