Exam 11: Reporting and Analyzing Shareholders Equity

Indicate the respective effects of the declaration of a cash dividend on the following statement of financial position sections:

When setting the price of a new share issue, a corporation does not need to consider

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

Limited liability of shareholders means

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?

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

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

The sale of common shares should be recorded as a

Retained earnings that are restricted are unavailable for dividends.

The board of directors of Wessex Inc. declared a cash dividend on November 15, 2018, to be paid on December 15, 2018, to shareholders owning shares on November 30, 2018. Given these facts, the date of November 30, 2018, is referred to as the

Return on common shareholders' equity is calculated by dividing net income by ending shareholders' equity.

The declaration of a stock dividend will

Stock dividends and stock splits have the following effects on retained earnings:

Shareholders directly elect the corporation's

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

Which of the following statements reflects the transferability of ownership rights in a corporation?

A company may reacquire its own shares for all of the following reasons except to

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

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

If a corporation declares a 10% stock dividend on its common shares, the account to be debited on the date of declaration is