Question 1

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

Accepted Answer

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

Question 2

A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state.The entry to record this transaction will include:

Accepted Answer

A) A $1,800 credit to Common Stock 
B) A $1,500 debit to Organization Expenses 
C) A $300 credit to Contributed Capital in Excess of Par Value,Common Stock 
D) A $1,800 debit to Legal Expenses 
E) A $1,800 credit to Cash 
A) A $1,800 credit to Common Stock 
B) A $1,500 debit to Organization Expenses 
C) A $300 credit to Contributed Capital in Excess of Par Value,Common Stock 
D) A $1,800 debit to Legal Expenses 
E) A $1,800 credit to Cash

Question 3

On August 31,2010 Gilliam Corporation's common stock is priced at $50 per share before any stock dividend,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 35% stock dividend.
 $\begin{array}{lr}
\text { Common stock- } \$ 7 \text { par value, } 95,000 \text { shares authorized, } 44,000 \text { shares }\
\text { issued and outstanding } & \$ 308,000 \
 \text { Paid-in capital in excess of par value, common stock } & 100,000 \
 \text { Retained earnings } & 375,000 \
 \text { Total stockholder's equity } & \$ 783,000
\end{array}$
 
What is the total amount in the Retained Earnings account immediately after the stock dividend?

Accepted Answer

The answer of On August 31,2010 Gilliam Corporation's common stock...

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

Book value per share:

Accepted Answer

A) Reflects the value per share if a company is liquidated at balance sheet amounts 
B) Is assets divided by equity 
C) Is assets divided by the number of common share outstanding 
D) Measures the worth of assets 
E) Is equal to par value per share 
A) Reflects the value per share if a company is liquidated at balance sheet amounts 
B) Is assets divided by equity 
C) Is assets divided by the number of common share outstanding 
D) Measures the worth of assets 
E) Is equal to par value per share

Question 6

A corporation is a separate legal entity from its owners.

Accepted Answer

A) True 
 B)False

Question 7

A company is authorized to issue 50,000 shares of $50 par,10%,noncumulative,nonparticipating preferred stock and 500,000 shares of no-par common stock.Prepare journal entries to record the following selected transactions that occurred during this year:
 $\begin{array}{|c|l|}
\hline\text { Mar. 1 } & \text { Issued 1,000 shares of common stock for } \$ 30 \text { cash per share. } \
\hline 15 & \begin{array}{l}
\text { Exchanged 2,000 shares of preferred stock for equipment and Merchandise } \
\text { inventory with market values of } \$ 90,000 \text { and } \$ 20,000, \text { respectively. }
\end{array} \
\hline
\end{array}$

Accepted Answer

None

Question 8

A company has $2,400,000 in stockholders' equity,that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1)preferred share and (2)common share.

Accepted Answer

(1)Book value per preferred sh

Question 9

Stockholders' equity consists of:

Accepted Answer

A) Long-term assets 
B) Contributed capital and retained earnings 
C) Contributed capital and par value 
D) Retained earnings and cash 
E) Premiums and discounts 
A) Long-term assets 
B) Contributed capital and retained earnings 
C) Contributed capital and par value 
D) Retained earnings and cash 
E) Premiums and discounts

Question 10

A corporation reports the following year-end stockholders' equity:
 $\begin{array}{|l|r|}
\hline\text { Contributed capital }\
\hline \text { Preferred stock, } 8 \%, 100,000 \text { shares authorized, } 50,000 \text { shares issued } & \$ 2,500,000 \
\hline \text { Contributed capital in excess of par, Preferred } & 125,000 \
\hline \text { Common stock, } \$ 10 \text { par, } 500,000 \text { shares authorized, } 400,000 \text { shares issued } & 4,000,000 \
\hline \text { Contributed capital in excess of par, Common } & \underline{1,200,000} \
\hline \text { Total contributed capital } & \$ 7,825,000 \
\hline \text { Retained earnings } & \underline{10,775,000} \
\hline \text { Total stockholders' equity } & \$ 18,600,000 \
\hline
\end{array}$
 
Determine the following:
(1)Par value for the preferred stock.
(2)Book value per share for both preferred stock and common stock assuming a call price per share of $52 for preferred and no dividends in arrears.

Accepted Answer

(1)Preferred stock par value = $2,500,00

Question 11

A proxy is:

Accepted Answer

A) A legal document that gives a designated agent of a stockholder the power to vote the stock 
B) A contractual commitment by an investor to purchase unissued shares of stock 
C) An amount of assets defined by state law that stockholders must invest and leave invested in a corporation 
D) The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation 
E) An arbitrary amount assigned to no-par stock by the corporation's board of directors 
A) A legal document that gives a designated agent of a stockholder the power to vote the stock 
B) A contractual commitment by an investor to purchase unissued shares of stock 
C) An amount of assets defined by state law that stockholders must invest and leave invested in a corporation 
D) The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation 
E) An arbitrary amount assigned to no-par stock by the corporation's board of directors

Question 12

On August 31,2010 Gilliam Corporation's common stock is priced at $50 per share before any stock dividend,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 10% stock dividend.
 $\begin{array}{lr}
\text { Common stock- } \$ 7 \text { par value, } 95,000 \text { shares authorized, } 44,000 \text { shares }\
\text { issued and outstanding } & \$ 308,000 \
 \text { Paid-in capital in excess of par value, common stock } & 100,000 \
 \text { Retained earnings } & 375,000 \
 \text { Total stockholder's equity } & \$ 783,000
\end{array}$

What is the total amount in the Retained Earning account immediately after the stock dividend?

Accepted Answer

The answer of On August 31,2010 Gilliam Corporation's common stock...

Question 13

The entrepreneurs who founded Medsite,Inc.experienced problems as they had limited capital.What were some of the serious corporate accounting-related issues they had to face?

Accepted Answer

The founders of Medsite,Inc.had very lim

Question 14

The date the board of directors votes to pay a dividend is called the:

Accepted Answer

A) Date of stockholders' meeting 
B) Date of declaration 
C) Date of record 
D) Date of payment 
E) Liquidating date 
A) Date of stockholders' meeting 
B) Date of declaration 
C) Date of record 
D) Date of payment 
E) Liquidating date

Question 15

Dividend payment involves three important dates.They are ______________________,_________________________ and ____________________________.

Accepted Answer

The date of declarat

Question 16

The journal entry to record distribution of a cash dividend to common shareholders includes a debit to _______________________ and a credit to __________.

Accepted Answer

Common Div

Question 17

The price-earnings (PE)ratio is calculated by dividing ___________________________ by ________________________________.

Accepted Answer

Market price per sha

Question 18

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

Accepted Answer

A) Financial leverage 
B) Discount on stock 
C) Premium on stock 
D) Preemptive right 
E) Capital gain 
A) Financial leverage 
B) Discount on stock 
C) Premium on stock 
D) Preemptive right 
E) Capital gain

Question 19

Match between columns
                        Premises:    Proxy 
   Small stock dividend 
   Basic earnings per share 
   Transfer agent 
   Price-earnings ratio 
   Appropriated retained earnings 
   Dividend yield 
   Reverse stock split 
   Stock split 
   Date of record

Accepted Answer

The Answer of  Occurs when a corporation calls in is...

Question 20

A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:

Accepted Answer

A) 16.9 
B) 14.7 
C) 92.0 
D) 13.5 
E) 8.0 
A) 16.9 
B) 14.7 
C) 92.0 
D) 13.5 
E) 8.0

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

A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state.The entry to record this transaction will include:

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:

Book value per share:

A corporation is a separate legal entity from its owners.

A company has $2,400,000 in stockholders' equity,that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1)preferred share and (2)common share.

Stockholders' equity consists of:

A proxy is:

The entrepreneurs who founded Medsite,Inc.experienced problems as they had limited capital.What were some of the serious corporate accounting-related issues they had to face?

The date the board of directors votes to pay a dividend is called the:

Dividend payment involves three important dates.They are __________,_ and ________________.

The journal entry to record distribution of a cash dividend to common shareholders includes a debit to _____________ and a credit to .

The price-earnings (PE)ratio is calculated by dividing _ by ______.

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 11: Reporting and Analyzing Equity

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

A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state.The entry to record this transaction will include:

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:

Book value per share:

A corporation is a separate legal entity from its owners.

A company has $2,400,000 in stockholders' equity,that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1)preferred share and (2)common share.

Stockholders' equity consists of:

A proxy is:

The entrepreneurs who founded Medsite,Inc.experienced problems as they had limited capital.What were some of the serious corporate accounting-related issues they had to face?

The date the board of directors votes to pay a dividend is called the:

Dividend payment involves three important dates.They are ______________________,_________________________ and ____________________________.

The journal entry to record distribution of a cash dividend to common shareholders includes a debit to _______________________ and a credit to __________.

The price-earnings (PE)ratio is calculated by dividing ___________________________ by ________________________________.

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

A company has net income of $850,000.It also has 125,000 weighted-average common shares outstanding and a market value per share of $115.The company's price-earnings ratio is equal to:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Dividend payment involves three important dates.They are __________,_ and ________________.

The journal entry to record distribution of a cash dividend to common shareholders includes a debit to _____________ and a credit to .

The price-earnings (PE)ratio is calculated by dividing _ by ______.