Exam 11: Reporting and Analyzing Shareholders Equity

Ethel Inc.has 15,000, $3, noncumulative preferred shares and 200,000 common shares issued.What is the total annual dividend on the preferred shares?

An initial public offering occurs the first time a corporation sells shares to the public.

On the dividend record date

Return on common shareholders' equity is a ratio that

A stock dividend results in a decrease in

A loss

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

The two ways that a corporation can be classified by ownership are

If a corporation reports a net income, it should be closed to retained earnings.If it reports a loss, it should be closed to the contributed surplus account.

Under the corporate form of business organization

Which one of the following events would not require a journal entry on a corporation's books?

The issue of common shares affects both share capital and retained earnings.

Declaration and distribution of a stock dividend does not affect the total amount of shareholders' equity.

Placing a restriction on retained earnings will

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

The payout ratio is calculated by dividing the cash dividends paid on common shares by retained earnings.

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

The net effect on the corporation's books of the declaration and payment of a cash dividend are to

At December 31, 2022, Fashion Forward Inc.has 15,000, $4, cumulative preferred shares issued.If the board of directors declares a $55,000 dividend at this date

Dividends in arrears are dividends on