Exam 11: Reporting and Interpreting Stockholders Equity

Which of the following is an advantage of debt financing?

On the declaration date,the company:

Use the information above to answer the following question.What was the amount of additional paid-in capital reported in the balance sheet?

Walter Co.declared a dividend.On the payment date of the dividend,its:

Several years ago,Doran Corp.issued 100,000 of its $2 par value stock for a total of $800,000.This is the only time that it has sold stock.This year it purchased 1,000 shares of its own stock for $10 a share.As a result of acquiring treasury stock:

Limited liability companies (LLCs):

Advantages of debt financing over equity financing include that:

The number of shares issued represents the number of shares:

Which of the following accounts is used to record a small stock dividend on common stock but is not used to record a large stock dividend on common stock?

Which of the following statements about a corporation is not correct?

Common stock's par value is:

What of the following statements about Accumulated Other Comprehensive Income (Loss)is not correct?

GE buys back 300,000 shares of its stock from investors at $45 a share.Two years later it reissues this stock for $65 a share.The stock reissue would be recorded with a debit to Cash for:

An increase to Rich's Farm's account called Barry Rich,capital would occur when:

All else being equal,if net income decreases:

Wok N Roll,Inc.began on January 1,2014 by issuing 100,000 shares of $1 par value common stock and 1,000 shares of $100 par value,5%,cumulative preferred stock.No dividends were declared in 2014 or 2015.In 2016,Wok N Roll declared and paid a $0.50 dividend to its common stockholders.Assuming all shares originally issued are outstanding,the total dividend declared and paid in 2016 equals:

All other things being equal,when companies repurchases its common stock:

MacDowell Corp.has 100,000 shares outstanding with a par value of $2.On March 3,it declared a 100% stock dividend,when its stock price was $15.As a result of this stock dividend,retained earnings:

The return on equity ratio measures the:

At the end of the accounting period,but before the closing entries have been recorded,Harry,the proprietor of Harry's Bar and Grill,has a debit of $24,500 in his drawing account and a credit of $126,800 in his capital account.If his capital account has a credit balance of $137,900 after the closing,what was his net income?