Question 1

Changes in accounting estimates are accounted for in current and future periods.

Accepted Answer

A) True 
 B)False

Question 2

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

Accepted Answer

($2,375,00

Question 3

A corporation is a separate legal entity from its owners.

Accepted Answer

A) True 
 B)False

Question 4

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

Accepted Answer

A) Cumulative preferred stock 
B) Callable preferred stock 
C) Participating preferred stock 
D) Convertible preferred stock 
E) Preferential preferred stock 
A) Cumulative preferred stock 
B) Callable preferred stock 
C) Participating preferred stock 
D) Convertible preferred stock 
E) Preferential preferred stock

Question 5

_____________________ is a class of stock assigned a value by the corporation in its charter.

Accepted Answer

The answer of _____________________ is a class of stock assigned...

Question 6

_______________________ generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Accepted Answer

The answer of _______________________ generally consist of a company's cumulative...

Question 7

Shamrock Company had net income of $30,000.On January 1,there were 8,000 shares of common stock outstanding.On April 1,the company issued an additional 2,000 shares of common stock.There were no other stock transactions.The company has earnings per share of:

Accepted Answer

A) $3.75 
B) $3.00 
C) $3.33 
D) $15.00 
E) $3.16 
A) $3.75 
B) $3.00 
C) $3.33 
D) $15.00 
E) $3.16

Question 8

A company issued 7% preferred stock with a $100 par value.This means that:

Accepted Answer

A) Preferred shareholders have a guaranteed dividend. 
B) The amount of the potential dividend is $7 per year per preferred share. 
C) Preferred shareholders are entitled to 7% of the annual income. 
D) The market price per share will approximate $100 per share. 
E) Only 7% of the total contributed capital can be preferred stock. 
A) Preferred shareholders have a guaranteed dividend. 
B) The amount of the potential dividend is $7 per year per preferred share. 
C) Preferred shareholders are entitled to 7% of the annual income. 
D) The market price per share will approximate $100 per share. 
E) Only 7% of the total contributed capital can be preferred stock.

Question 9

Minimum legal capital requirements often prohibit dividends when the dividends reduce stockholders' equity below the minimum specified amount.

Accepted Answer

A) True 
 B)False

Question 10

A company has 5,000 shares of $1 par value common stock and 6,000 shares of 2%,$98 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $750,000.Net income for the current year was $400,000.If the company paid a dividend of $3 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

Accepted Answer

A) $1,123,240 
B) $1,135,000 
C) $1,150,000 
D) $735,000 
E) $723,240 
A) $1,123,240 
B) $1,135,000 
C) $1,150,000 
D) $735,000 
E) $723,240

Question 11

Record the following transactions of a company in general journal form:
(a) Reacquired 8,000 of its own $10 par value common stock at $40 cash per share.The stock was originally issued at $15 per share.
(b) Sold 2,000 shares of the stock reacquired under part (a) at $43 cash per share.
(c) Sold 3,000 shares of the stock reacquired under part (a) at $39 cash per share.

Accepted Answer

(a) @#IMG-DLM&_TB6947_00_TB6947_00_TB694

Question 12

_______________________ are responsible for and have final authority for managing a corporation's activities.

Accepted Answer

The board

Question 13

If a company discovers a mistake in 2013 that was made in 2012,the company records the adjustment in the year ________.

Accepted Answer

The answer of If a company discovers a mistake in...

Question 14

A corporation is responsible for its own acts and debts as the corporation is considered a ____________________________________.

Accepted Answer

separate l

Question 15

A company has net income of $2,800,000.It also has 400,000 weighted-average common shares outstanding and a price-earnings ratio of 20.What is the market value per share of this company's stock?

Accepted Answer

A) $2.85 
B) $140 
C) $20,000 
D) $.35 
E) $2,857.14 
A) $2.85 
B) $140 
C) $20,000 
D) $.35 
E) $2,857.14

Question 16

Match between columns
                        Premises: No-par value stock
Convertible preferred stock
Par value
Stock dividend
Preemptive right
Organization costs
Stock split
Common stock
Callable preferred stock
Authorized stock

Accepted Answer

The Answer of A class of stock that has not is...

Question 17

The amount of income earned per share of a company's common stock is known as:

Accepted Answer

A) Restricted retained earnings per share. 
B) Earnings per share. 
C) Continuing operations per share. 
D) Dividends per share. 
E) Book value per share. 
A) Restricted retained earnings per share. 
B) Earnings per share. 
C) Continuing operations per share. 
D) Dividends per share. 
E) Book value per share.

Question 18

The total amount of cash and other assets the corporation receives from its stockholders in exchange for common stock is called __________________________.

Accepted Answer

The answer of The total amount of cash and other...

Question 19

On July 31,a corporation reported the following stockholders' equity:
   On July 31,the market value of the corporation's stock was $15 per share.The directors were considering declaring a 10% or 30% stock dividend but wanted to know what effect each stock dividend would have on stockholders' equity.Calculate the balances in the following accounts for each proposed stock dividend distribution.

Accepted Answer

@#IMG-DLM&
10% stock

Question 20

A dividend preference for preferred stock means that:

Accepted Answer

A) Preferred stockholders receive their dividends before common shareholders. 
B) Preferred shareholders are guaranteed dividends. 
C) Dividends are paid quarterly. 
D) Preferred stockholders prefer dividends more than common stockholders. 
E) Dividends must be declared on preferred stock. 
A) Preferred stockholders receive their dividends before common shareholders. 
B) Preferred shareholders are guaranteed dividends. 
C) Dividends are paid quarterly. 
D) Preferred stockholders prefer dividends more than common stockholders. 
E) Dividends must be declared on preferred stock.

Changes in accounting estimates are accounted for in current and future periods.

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

A corporation is a separate legal entity from its owners.

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

_____________________ is a class of stock assigned a value by the corporation in its charter.

_______________________ generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Shamrock Company had net income of $30,000.On January 1,there were 8,000 shares of common stock outstanding.On April 1,the company issued an additional 2,000 shares of common stock.There were no other stock transactions.The company has earnings per share of:

A company issued 7% preferred stock with a $100 par value.This means that:

Minimum legal capital requirements often prohibit dividends when the dividends reduce stockholders' equity below the minimum specified amount.

_______________________ are responsible for and have final authority for managing a corporation's activities.

If a company discovers a mistake in 2013 that was made in 2012,the company records the adjustment in the year ________.

A corporation is responsible for its own acts and debts as the corporation is considered a ____________________________________.

A company has net income of $2,800,000.It also has 400,000 weighted-average common shares outstanding and a price-earnings ratio of 20.What is the market value per share of this company's stock?

The amount of income earned per share of a company's common stock is known as:

The total amount of cash and other assets the corporation receives from its stockholders in exchange for common stock is called __________________________.

A dividend preference for preferred stock means that:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 11: Reporting and Analyzing Equity

Changes in accounting estimates are accounted for in current and future periods.

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

A corporation is a separate legal entity from its owners.

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

_____________________ is a class of stock assigned a value by the corporation in its charter.

_______________________ generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Shamrock Company had net income of $30,000.On January 1,there were 8,000 shares of common stock outstanding.On April 1,the company issued an additional 2,000 shares of common stock.There were no other stock transactions.The company has earnings per share of:

A company issued 7% preferred stock with a $100 par value.This means that:

Minimum legal capital requirements often prohibit dividends when the dividends reduce stockholders' equity below the minimum specified amount.

_______________________ are responsible for and have final authority for managing a corporation's activities.

If a company discovers a mistake in 2013 that was made in 2012,the company records the adjustment in the year ________.

A corporation is responsible for its own acts and debts as the corporation is considered a ____________________________________.

A company has net income of $2,800,000.It also has 400,000 weighted-average common shares outstanding and a price-earnings ratio of 20.What is the market value per share of this company's stock?

The amount of income earned per share of a company's common stock is known as:

The total amount of cash and other assets the corporation receives from its stockholders in exchange for common stock is called __________________________.

A dividend preference for preferred stock means that:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters