Exam 11: Reporting and Analyzing Shareholders Equity

A stock split will

Based on the following account balances, what is the total shareholders' equity?

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

One of the reasons a company may repurchase its own shares is to reduce the market value to make the shares more affordable.

Preferred shares have a contractual preference over common shares in certain areas, but do not have the right to vote.

Which one of the following would not be considered an advantage of the corporate form of organization?

The ability of a corporation to obtain capital is

Share capital is the amount shareholders paid or contributed to the corporation in exchange for shares of ownership.

A disadvantage of the corporate form of organization is

Which of the following statements is considered an advantage of the corporate form of organization?

Retractable preferred shares are

For last year, Casper Corporation reported net income of $625,000, and paid $175,000 in dividends for the 300,000 preferred shares issued.The weighted average of common shares was 1,000,000 shares.Roxy's basic earnings per share was

A stock split results in a transfer at market value from retained earnings to share capital.

Stock Dividends Distributable is reported as a liability on the statement of financial position.

The main purpose of a stock split is to increase the marketability of the shares.

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.

Which of the following is not true of a corporation?

At January 1, 2022, Blue Corporation had a credit balance of $3,050,000 in its retained earnings account.During the year, Blue paid $275,000 in dividends, reported net income of $420,000 and other comprehensive income of $750,000.The December 31 balance of retained earnings is

The authorization of common shares

When stock dividends are distributed