Question 1

Distribution of earnings to stockholders may be in the form of cash only.

Accepted Answer

A) True 
 B)False

Question 2

When treasury stock was sold at cost,Cash was debited and Common Stock was credited.This error would cause:

Accepted Answer

A) the period end assets to be overstated. 
B) the period end liabilities to be overstated. 
C) the total period end stockholders' equity to be overstated. 
D) None of these is correct. 
A) the period end assets to be overstated. 
B) the period end liabilities to be overstated. 
C) the total period end stockholders' equity to be overstated. 
D) None of these is correct.

Question 3

Treasury stock should usually be recorded at:

Accepted Answer

A) par or stated value. 
B) cost. 
C) original issue price. 
D) net realizable value. 
A) par or stated value. 
B) cost. 
C) original issue price. 
D) net realizable value.

Question 4

Which of the following is prepared to explain the change in the amount of retained earnings between successive balance sheet dates?

Accepted Answer

A) Income statement 
B) Statement of stockholders' equity 
C) Balance sheet 
D) None of the above 
A) Income statement 
B) Statement of stockholders' equity 
C) Balance sheet 
D) None of the above

Question 5

Appropriations of retained earnings are voted upon by the board of directors.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following dividend dates does NOT get a formal journal entry?

Accepted Answer

A) Date of payment 
B) Date of declaration 
C) Date of record 
D) All receive formal journal entries. 
A) Date of payment 
B) Date of declaration 
C) Date of record 
D) All receive formal journal entries.

Question 7

Barkley's Resort had 2,000 shares of $20 par value common stock outstanding.On June 1,Barkley's purchased 200 shares of treasury stock for $21 per share and later reissued them for $22 per share.What amount of profit from the re-issuance will be reported on the income statement?

Accepted Answer

A) $400 
B) $200 
C) $100 
D) $0 
A) $400 
B) $200 
C) $100 
D) $0

Question 8

Book Value per Share is defined as:

Accepted Answer

A) the price a corporation pays when it reserves the right to retire or redeem stock at a specific price. 
B) the price at which shares are bought and sold on the open market. 
C) the total stockholders' equity minus total amount assigned to preferred stock. 
D) the total of stockholders' equity (when only common stock exists)divided by the number of shares issued. 
A) the price a corporation pays when it reserves the right to retire or redeem stock at a specific price. 
B) the price at which shares are bought and sold on the open market. 
C) the total stockholders' equity minus total amount assigned to preferred stock. 
D) the total of stockholders' equity (when only common stock exists)divided by the number of shares issued.

Question 9

Appropriations to retained earnings can be:

Accepted Answer

A) contractual only. 
B) an increase in retained earnings. 
C) a decrease in total retained earnings. 
D) None of these answers is correct. 
A) contractual only. 
B) an increase in retained earnings. 
C) a decrease in total retained earnings. 
D) None of these answers is correct.

Question 10

Total stockholders' equity consists of retained earnings of $100,000 and paid-in capital of $500,000.There are 30,000 common shares outstanding,and no preferred shares outstanding.What is the book value per share of common stock?

Accepted Answer

A) $20.00 per share 
B) $25.00 per share 
C) $15.00 per share 
D) $ 5.00 per share 
A) $20.00 per share 
B) $25.00 per share 
C) $15.00 per share 
D) $ 5.00 per share

Question 11

An entry to appropriate a portion of retained earnings to finance a future plant expansion would include a credit to:

Accepted Answer

A) Paid-in Capital in Excess of Par. 
B) Retained Earnings Appropriated for Plant Expansion 
C) Retained Earnings. 
D) Unappropriated Retained Earnings. 
A) Paid-in Capital in Excess of Par. 
B) Retained Earnings Appropriated for Plant Expansion 
C) Retained Earnings. 
D) Unappropriated Retained Earnings.

Question 12

A distribution to stockholders in the form of stock is called a:

Accepted Answer

A) stock dividend. 
B) stock split. 
C) stock conversion. 
D) cash dividend. 
A) stock dividend. 
B) stock split. 
C) stock conversion. 
D) cash dividend.

Question 13

The journal entry to pay a cash dividend is to:

Accepted Answer

A) debit Dividends Payable;credit Cash. 
B) debit Retained Earnings;credit Cash. 
C) debit Dividends Payable;credit Retained Earnings. 
D) debit Retained Earnings;credit Dividends Payable. 
A) debit Dividends Payable;credit Cash. 
B) debit Retained Earnings;credit Cash. 
C) debit Dividends Payable;credit Retained Earnings. 
D) debit Retained Earnings;credit Dividends Payable.

Question 14

A prior period adjustment for depreciation would affect what account in the stockholders' equity section?

Accepted Answer

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

Question 15

The date of record determines who receives the declared dividends.

Accepted Answer

A) True 
 B)False

Question 16

When a stock dividend is distributed,the account to be debited would be:

Accepted Answer

A) Common Stock. 
B) Paid-in Capital in Excess of Par Value. 
C) Stock Dividends Distributable. 
D) stock dividends. 
A) Common Stock. 
B) Paid-in Capital in Excess of Par Value. 
C) Stock Dividends Distributable. 
D) stock dividends.

Question 17

Patterson Research has 200 shares of 10%,$100 par value,preferred stock,and 2000 shares of $10 par value common stock outstanding.Total paid-in capital is $42,000,and retained earnings are $0.There are one-year dividends in arrears on preferred stock.The book value per share on common stock is:

Accepted Answer

A) $10. 
B) $40. 
C) $20. 
D) $9. 
A) $10. 
B) $40. 
C) $20. 
D) $9.

Question 18

Discuss and describe the major differences among the following common stock values:
a.Par value
b.Stated value
c.Redemption value
d.Market value
e.Book value

Accepted Answer

a.Par value is an entirely arbitrary amo

Question 19

A retained earnings appropriation is a restriction of retained earnings by:

Accepted Answer

A) accountants. 
B) senior management. 
C) stockholders. 
D) the board of directors. 
A) accountants. 
B) senior management. 
C) stockholders. 
D) the board of directors.

Question 20

If total stockholders' equity is $120,000 with 8,000 common shares outstanding,what is the book value per share of common stock? (Assume no preferred stock is outstanding)

Accepted Answer

A) $18.00 
B) $45.00 
C) $15.00 
D) $12.00 
A) $18.00 
B) $45.00 
C) $15.00 
D) $12.00

Exam 19: Corporations: Stock Values,dividends,treasury Stocks,

Distribution of earnings to stockholders may be in the form of cash only.

When treasury stock was sold at cost,Cash was debited and Common Stock was credited.This error would cause:

Treasury stock should usually be recorded at:

Which of the following is prepared to explain the change in the amount of retained earnings between successive balance sheet dates?

Appropriations of retained earnings are voted upon by the board of directors.

Which of the following dividend dates does NOT get a formal journal entry?

Barkley's Resort had 2,000 shares of $20 par value common stock outstanding.On June 1,Barkley's purchased 200 shares of treasury stock for $21 per share and later reissued them for $22 per share.What amount of profit from the re-issuance will be reported on the income statement?

Book Value per Share is defined as:

Appropriations to retained earnings can be:

Total stockholders' equity consists of retained earnings of $100,000 and paid-in capital of $500,000.There are 30,000 common shares outstanding,and no preferred shares outstanding.What is the book value per share of common stock?

An entry to appropriate a portion of retained earnings to finance a future plant expansion would include a credit to:

A distribution to stockholders in the form of stock is called a:

The journal entry to pay a cash dividend is to:

A prior period adjustment for depreciation would affect what account in the stockholders' equity section?

The date of record determines who receives the declared dividends.

When a stock dividend is distributed,the account to be debited would be:

Patterson Research has 200 shares of 10%,$100 par value,preferred stock,and 2000 shares of $10 par value common stock outstanding.Total paid-in capital is $42,000,and retained earnings are $0.There are one-year dividends in arrears on preferred stock.The book value per share on common stock is:

Discuss and describe the major differences among the following common stock values: a.Par value b.Stated value c.Redemption value d.Market value e.Book value

A retained earnings appropriation is a restriction of retained earnings by:

If total stockholders' equity is $120,000 with 8,000 common shares outstanding,what is the book value per share of common stock? (Assume no preferred stock is outstanding)

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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