Question 1

A stock dividend is recorded with a transfer from:

Accepted Answer

A) Contributed capital to retained earnings. 
B) Retained earnings to contributed capital. 
C) Retained earnings to assets. 
D) Contributed capital to assets. 
E) Assets to contributed capital. 
A) Contributed capital to retained earnings. 
B) Retained earnings to contributed capital. 
C) Retained earnings to assets. 
D) Contributed capital to assets. 
E) Assets to contributed capital.

Question 2

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Accepted Answer

A) True 
 B)False

Question 3

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

Accepted Answer

The answer of __________________________ is the annual amount of cash...

Question 4

A stock split increases total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 5

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

Accepted Answer

A) Debit Retained Earnings $90,000;credit Common Dividends Payable $90,000. 
B) Debit Common Dividends Payable $95,000;credit Cash $95,000. 
C) Debit Retained Earnings $5,000;credit Common Dividends Payable $5,000. 
D) Debit Common Dividends Payable $90,000;credit Cash $90,000. 
E) Debit Retained Earnings $95,000;credit Common Dividends Payable $95,000. 
A) Debit Retained Earnings $90,000;credit Common Dividends Payable $90,000. 
B) Debit Common Dividends Payable $95,000;credit Cash $95,000. 
C) Debit Retained Earnings $5,000;credit Common Dividends Payable $5,000. 
D) Debit Common Dividends Payable $90,000;credit Cash $90,000. 
E) Debit Retained Earnings $95,000;credit Common Dividends Payable $95,000.

Question 6

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

Accepted Answer

A) True 
 B)False

Question 7

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Accepted Answer

A) True 
 B)False

Question 8

Par value of a stock refers to the:

Accepted Answer

A) Issue price of the stock. 
B) Value assigned per share by the corporate charter. 
C) Market value of the stock on the date of the financial statements. 
D) Maximum selling price of the stock. 
E) Dividend value of the stock. 
A) Issue price of the stock. 
B) Value assigned per share by the corporate charter. 
C) Market value of the stock on the date of the financial statements. 
D) Maximum selling price of the stock. 
E) Dividend value of the stock.

Question 9

A company made an error in recording the 2014 purchase of computer equipment as an expense.This was discovered in 2015.The item should be reported as a prior period adjustment on the 2015 income statement.

Accepted Answer

A) True 
 B)False

Question 10

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ______________________.

Accepted Answer

The answer of The cumulative net income and loss not...

Question 11

The stockholders' equity section of a company's year-end balance sheet follows:   The preferred stock has a call price of $51.50 per share plus dividends in arrears.Only one year of dividends is in arrears.Calculate the book value per (1)preferred share,and (2)common share.

Accepted Answer

@#IMG-DLM& (1)Book value per preferred s

Question 12

A liability for dividends exists:

Accepted Answer

A) When cumulative preferred stock is sold. 
B) On the date of declaration. 
C) On the date of record. 
D) On the date of payment. 
E) For dividends in arrears on cumulative preferred stock. 
A) When cumulative preferred stock is sold. 
B) On the date of declaration. 
C) On the date of record. 
D) On the date of payment. 
E) For dividends in arrears on cumulative preferred stock.

Question 13

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Accepted Answer

A) $1.65. 
B) $1.99. 
C) $1.31. 
D) $0.34. 
E) $4.89. 
A) $1.65. 
B) $1.99. 
C) $1.31. 
D) $0.34. 
E) $4.89.

Question 14

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Dividend yield shows the annual amount of cash dividends distributed to common shares relative to the stock's market price.

Accepted Answer

A) True 
 B)False

Question 17

The date of record is the date that directors vote to pay a cash dividend to shareholders.

Accepted Answer

A) True 
 B)False

Question 18

A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.The issue price was $10 per share.The entry to record this transaction would be:

Accepted Answer

A) Debit Cash $50,000;credit Paid-in Capital in Excess of Par Value,Common Stock $45,000;credit Common Stock $5,000. 
B) Debit Cash $50,000;credit Common Stock $50,000. 
C) Debit Common Stock $50,000;credit Cash $50,000. 
D) Debit Treasury Stock $50,000;credit Cash $50,000. 
E) Debit Common Stock $25,000;debit Paid-in Capital in Excess of Par Value,Common Stock $5,000;credit Common Stock $45,000. 
A) Debit Cash $50,000;credit Paid-in Capital in Excess of Par Value,Common Stock $45,000;credit Common Stock $5,000. 
B) Debit Cash $50,000;credit Common Stock $50,000. 
C) Debit Common Stock $50,000;credit Cash $50,000. 
D) Debit Treasury Stock $50,000;credit Cash $50,000. 
E) Debit Common Stock $25,000;debit Paid-in Capital in Excess of Par Value,Common Stock $5,000;credit Common Stock $45,000.

Question 19

Prior to June 30,a company has never had any treasury stock transactions.A company repurchased 100 shares of its common stock on June 30 for $40 per share.On July 20,it reissued 50 of these shares at $46 per share.On August 1,it reissued 20 of the shares at $38 per share.What is the balance in the Treasury Stock account on August 2?

Accepted Answer

A) $5,050. 
B) $2,600. 
C) $100. 
D) $1,200. 
E) $0. 
A) $5,050. 
B) $2,600. 
C) $100. 
D) $1,200. 
E) $0.

Question 20

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Accepted Answer

A) True 
 B)False

Exam 13: Accounting for Corporations

A stock dividend is recorded with a transfer from:

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

A stock split increases total stockholders' equity.

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Par value of a stock refers to the:

A company made an error in recording the 2014 purchase of computer equipment as an expense.This was discovered in 2015.The item should be reported as a prior period adjustment on the 2015 income statement.

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ______________________.

The stockholders' equity section of a company's year-end balance sheet follows: The preferred stock has a call price of $51.50 per share plus dividends in arrears.Only one year of dividends is in arrears.Calculate the book value per (1)preferred share,and (2)common share.

A liability for dividends exists:

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

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:

Dividend yield shows the annual amount of cash dividends distributed to common shares relative to the stock's market price.

The date of record is the date that directors vote to pay a cash dividend to shareholders.

A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.The issue price was $10 per share.The entry to record this transaction would be:

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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