Question 1

Retained earnings restrictions are reported

Accepted Answer

A)  in the footnotes of the current year's financial statements. 
B)  on the current year's balance sheet. 
C)  on the current year's income statement. 
D)  on the current year's retained earnings statement. 
A)  in the footnotes of the current year's financial statements. 
B)  on the current year's balance sheet. 
C)  on the current year's income statement. 
D)  on the current year's retained earnings statement.

Question 2

Under IFRS, Revaluation Surplus is part of

Accepted Answer

A)  share premium. 
B)  retained earnings. 
C)  general reserves. 
D)  contributed capital. 
A)  share premium. 
B)  retained earnings. 
C)  general reserves. 
D)  contributed capital.

Question 3

Additional paid-in capital includes all of the following except

Accepted Answer

A)  paid-in capital from treasury stock. 
B)  paid-in capital in excess of par. 
C)  paid-in capital in excess of stated value. 
D)  paid-in capital in excess of book value. 
A)  paid-in capital from treasury stock. 
B)  paid-in capital in excess of par. 
C)  paid-in capital in excess of stated value. 
D)  paid-in capital in excess of book value.

Question 4

The retained earnings statement

Accepted Answer

A)  is the owners' equity statement for a corporation. 
B)  will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. 
C)  will not reflect net losses. 
D)  will, in some cases, fail to reconcile the beginning and ending retained earnings balances. 
A)  is the owners' equity statement for a corporation. 
B)  will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. 
C)  will not reflect net losses. 
D)  will, in some cases, fail to reconcile the beginning and ending retained earnings balances.

Question 5

In its first year of operations, Arid Corporation had the following transactions pertaining to its $20 par value preferred stock.   Instructions
(a) Journalize the transactions.
(b) Indicate the amount to be reported for (1) preferred stock, and (2) paid-in capital in excess of par - preferred stock at the end of the year.

Accepted Answer

The answer of In its first year of operations, Arid...

Question 6

The sale of common stock below par

Accepted Answer

A)  is a common occurrence in most states. 
B)  is not permitted in most states. 
C)  is a practice that most stockholders encourage. 
D)  requires that a liability be recorded for the difference between the sales price and the par value of the shares. 
A)  is a common occurrence in most states. 
B)  is not permitted in most states. 
C)  is a practice that most stockholders encourage. 
D)  requires that a liability be recorded for the difference between the sales price and the par value of the shares.

Question 7

Regular dividends are declared out of

Accepted Answer

A)  Paid-in Capital in Excess of Par. 
B)  Treasury Stock. 
C)  Common Stock. 
D)  Retained Earnings. 
A)  Paid-in Capital in Excess of Par. 
B)  Treasury Stock. 
C)  Common Stock. 
D)  Retained Earnings.

Question 8

Lakeland, Inc. has 25,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2017. The board of directors declares and pays a $250,000 dividend in 2018. What is the amount of dividends received by the common stockholders in 2018?

Accepted Answer

A)  $0 
B)  $150,000 
C)  $250,000 
D)  $100,000 
A)  $0 
B)  $150,000 
C)  $250,000 
D)  $100,000

Question 9

A corporate board of directors does not generally

Accepted Answer

A)  select officers. 
B)  formulate operating policies. 
C)  declare dividends. 
D)  execute policy. 
A)  select officers. 
B)  formulate operating policies. 
C)  declare dividends. 
D)  execute policy.

Question 10

Vega Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 10,000 shares   Vega's total stockholders' equity was

Accepted Answer

A)  $24,669,000. 
B)  $24,690,000. 
C)  $25,269,000. 
D)  $24,639,000. 
A)  $24,669,000. 
B)  $24,690,000. 
C)  $25,269,000. 
D)  $24,639,000.

Question 11

Under the cost method, Treasury Stock is debited at the price paid to reacquire the shares, and the same amount is credited to Treasury Stock when the shares are sold.

Accepted Answer

A) True 
 B)False

Question 12

In the stockholders' equity section, paid-in capital and retained earnings are reported and the specific sources of paid-in capital are identified.

Accepted Answer

A) True 
 B)False

Question 13

Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization.

Accepted Answer

1. A 5. D

Question 14

If preferred stock is cumulative, the

Accepted Answer

A)  preferred dividends not declared in a given year are called dividends in arrears. 
B)  preferred stockholders and the common stockholders receive equal dividends. 
C)  preferred stockholders and the common stockholders receive the same total dollar amount of dividends. 
D)  common stockholders will share in the preferred dividends. 
A)  preferred dividends not declared in a given year are called dividends in arrears. 
B)  preferred stockholders and the common stockholders receive equal dividends. 
C)  preferred stockholders and the common stockholders receive the same total dollar amount of dividends. 
D)  common stockholders will share in the preferred dividends.

Question 15

Three important dates associated with dividends are the: (1)__________________, (2)__________________, and (3)__________________.

Accepted Answer

declaratio

Question 16

Retained earnings represents the amount of cash available for dividends.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is not an ownership right of a stockholder in a corporation?

Accepted Answer

A)  To vote in the election of directors 
B)  To declare dividends on the common stock 
C)  To share in assets upon liquidation 
D)  To share in corporate earnings 
A)  To vote in the election of directors 
B)  To declare dividends on the common stock 
C)  To share in assets upon liquidation 
D)  To share in corporate earnings

Question 18

Jason Thomas has invested $200,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Thomas stand to lose?

Accepted Answer

A)  Up to his total investment of $200,000. 
B)  Zero. 
C)  The $200,000 plus any personal assets the creditors demand. 
D)  $100,000. 
A)  Up to his total investment of $200,000. 
B)  Zero. 
C)  The $200,000 plus any personal assets the creditors demand. 
D)  $100,000.

Question 19

The _________________ measures the percentage of earnings a company distributes in the form of cash dividends to common stockholders.

Accepted Answer

The answer of The _________________ measures the percentage of earnings...

Question 20

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

Accepted Answer

A) True 
 B)False

Retained earnings restrictions are reported

Under IFRS, Revaluation Surplus is part of

Additional paid-in capital includes all of the following except

The retained earnings statement

The sale of common stock below par

Regular dividends are declared out of

A corporate board of directors does not generally

Vega Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 10,000 shares Vega's total stockholders' equity was

Under the cost method, Treasury Stock is debited at the price paid to reacquire the shares, and the same amount is credited to Treasury Stock when the shares are sold.

In the stockholders' equity section, paid-in capital and retained earnings are reported and the specific sources of paid-in capital are identified.

Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization.

If preferred stock is cumulative, the

Three important dates associated with dividends are the: (1), (2), and (3)__.

Retained earnings represents the amount of cash available for dividends.

Which one of the following is not an ownership right of a stockholder in a corporation?

Jason Thomas has invested $200,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Thomas stand to lose?

The _________________ measures the percentage of earnings a company distributes in the form of cash dividends to common stockholders.

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

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 11: Corporations: Organization, Stock Transactions

Retained earnings restrictions are reported

Under IFRS, Revaluation Surplus is part of

Additional paid-in capital includes all of the following except

The retained earnings statement

The sale of common stock below par

Regular dividends are declared out of

A corporate board of directors does not generally

Vega Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 10,000 shares Vega's total stockholders' equity was

Under the cost method, Treasury Stock is debited at the price paid to reacquire the shares, and the same amount is credited to Treasury Stock when the shares are sold.

In the stockholders' equity section, paid-in capital and retained earnings are reported and the specific sources of paid-in capital are identified.

Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization.

If preferred stock is cumulative, the

Three important dates associated with dividends are the: (1)__________________, (2)__________________, and (3)__________________.

Retained earnings represents the amount of cash available for dividends.

Which one of the following is not an ownership right of a stockholder in a corporation?

Jason Thomas has invested $200,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Thomas stand to lose?

The _________________ measures the percentage of earnings a company distributes in the form of cash dividends to common stockholders.

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

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Three important dates associated with dividends are the: (1), (2), and (3)__.