Question 1

A prior period adjustment would be necessary when:

Accepted Answer

A) a stock dividend is declared. 
B) a stock dividend is paid. 
C) depreciation expense was understated the prior year. 
D) a cash dividend is declared. 
A) a stock dividend is declared. 
B) a stock dividend is paid. 
C) depreciation expense was understated the prior year. 
D) a cash dividend is declared.

Question 2

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

Accepted Answer

A) the period end assets to be overstated. 
B) the period end net income to be understated. 
C) the period end stockholders' equity to be understated. 
D) None of the above is correct. 
A) the period end assets to be overstated. 
B) the period end net income to be understated. 
C) the period end stockholders' equity to be understated. 
D) None of the above is correct.

Question 3

Quinn Corporation has 3,000 shares of common stock issued and outstanding.The board of directors declared a $2.00 per share cash dividend on January 25,payable on March 25,to stockholders of record on February 25.Prepare the appropriate journal entries for the declaration and payment of the dividend.

Accepted Answer

The answer of Quinn Corporation has 3,000 shares of common...

Question 4

The entry to record the payment of a cash dividend would include a:

Accepted Answer

A) debit to Dividends Payable. 
B) debit to Retained Earnings. 
C) credit to Cash. 
D) Both A and C 
A) debit to Dividends Payable. 
B) debit to Retained Earnings. 
C) credit to Cash. 
D) Both A and C

Question 5

If treasury stock is re-issued at a price less than its cost,the debit entry could include:

Accepted Answer

A) Paid-in Capital from Treasury Stock. 
B) Retained Earnings. 
C) Treasury Stock. 
D) Both A and B 
A) Paid-in Capital from Treasury Stock. 
B) Retained Earnings. 
C) Treasury Stock. 
D) Both A and B

Question 6

On the date of record,the journal entry would include:

Accepted Answer

A) a debit to Dividend Payable. 
B) a credit to Dividend Payable. 
C) a credit to Cash. 
D) No entry is required on date of record. 
A) a debit to Dividend Payable. 
B) a credit to Dividend Payable. 
C) a credit to Cash. 
D) No entry is required on date of record.

Question 7

From the following,determine the book value per share for preferred and common stocks;no dividends are in arrears on the preferred stock.

Accepted Answer

The answer of From the following,determine the book value per...

Question 8

At the end of the accounting cycle,net income will be closed into:

Accepted Answer

A) Treasury Stock. 
B) Paid-in Capital. 
C) Cash. 
D) Retained Earnings. 
A) Treasury Stock. 
B) Paid-in Capital. 
C) Cash. 
D) Retained Earnings.

Question 9

The entry to record the declaration of a stock dividend would include:

Accepted Answer

A) a debit to Retained Earnings. 
B) a credit to Cash. 
C) a credit to Common Stock. 
D) None of these answers is correct. 
A) a debit to Retained Earnings. 
B) a credit to Cash. 
C) a credit to Common Stock. 
D) None of these answers is correct.

Question 10

A stock-split journal entry would include a:

Accepted Answer

A) debit to Retained Earnings and a credit to Common Stock. 
B) debit to Common Stock and a credit to Cash. 
C) debit to Common Stock Dividend Distributable and a credit Common Stock. 
D) memorandum notation only. 
A) debit to Retained Earnings and a credit to Common Stock. 
B) debit to Common Stock and a credit to Cash. 
C) debit to Common Stock Dividend Distributable and a credit Common Stock. 
D) memorandum notation only.

Question 11

Redemption value is the price at which a share of stock is bought and sold.

Accepted Answer

A) True 
 B)False

Question 12

Rick's Internet Corporation's balance in Retained Earnings is $50,000.The board of directors directs that $25,000 be appropriated for future business expansion.This will cause total retained earnings to:

Accepted Answer

A) remain at $50,000. 
B) increase by $25,000. 
C) decrease by $25,000. 
D) increase or decrease $25,000,as determined by the board. 
A) remain at $50,000. 
B) increase by $25,000. 
C) decrease by $25,000. 
D) increase or decrease $25,000,as determined by the board.

Question 13

Common Stock Dividend Distributable is a liability account.

Accepted Answer

A) True 
 B)False

Question 14

In the dividend process,the liability Dividend Payable is recognized on the:

Accepted Answer

A) date of declaration. 
B) date of record. 
C) date of payment. 
D) date of stock issue. 
A) date of declaration. 
B) date of record. 
C) date of payment. 
D) date of stock issue.

Question 15

Payment of a cash dividend causes:

Accepted Answer

A) a decrease in liabilities. 
B) an increase in an asset. 
C) an increase in stockholders' equity. 
D) All of the above are correct. 
A) a decrease in liabilities. 
B) an increase in an asset. 
C) an increase in stockholders' equity. 
D) All of the above are correct.

Question 16

Redemption Value 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 17

Which of the following would require a debit to the Retained Earnings account for a corporation?

Accepted Answer

A) The initial investment of stockholders 
B) Net income of the period 
C) Net loss of the period 
D) Contributions by new stockholders 
A) The initial investment of stockholders 
B) Net income of the period 
C) Net loss of the period 
D) Contributions by new stockholders

Question 18

Prepare a statement of retained earnings in proper form for Gray Corporation for the year ended December 31,20XX,from the following:
 $$\begin{array} { l r } 
\text { Retained Earnings, January } 1,20 \times\times  & \$ 7,700 \
\text { Dividends declared during the year } & 1,400 \
\text { Net income for the year } & 10,000 \
\text { Correction of prior year error, Sales overstated } & 3,000
\end{array}$$

Accepted Answer

The answer of Prepare a statement of retained earnings in...

Question 19

Treasury stock is:

Accepted Answer

A) stock that is issued in a stock dividend. 
B) stock that has been reacquired by the corporation. 
C) previously issued stock that has been canceled. 
D) unissued,but authorized stock. 
A) stock that is issued in a stock dividend. 
B) stock that has been reacquired by the corporation. 
C) previously issued stock that has been canceled. 
D) unissued,but authorized stock.

Question 20

Treasury stock was purchased and recorded as an asset.This error would cause:

Accepted Answer

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

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

A prior period adjustment would be necessary when:

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

The entry to record the payment of a cash dividend would include a:

If treasury stock is re-issued at a price less than its cost,the debit entry could include:

On the date of record,the journal entry would include:

From the following,determine the book value per share for preferred and common stocks;no dividends are in arrears on the preferred stock.

At the end of the accounting cycle,net income will be closed into:

The entry to record the declaration of a stock dividend would include:

A stock-split journal entry would include a:

Redemption value is the price at which a share of stock is bought and sold.

Rick's Internet Corporation's balance in Retained Earnings is $50,000.The board of directors directs that $25,000 be appropriated for future business expansion.This will cause total retained earnings to:

Common Stock Dividend Distributable is a liability account.

In the dividend process,the liability Dividend Payable is recognized on the:

Payment of a cash dividend causes:

Redemption Value is defined as:

Which of the following would require a debit to the Retained Earnings account for a corporation?

Treasury stock is:

Treasury stock was purchased and recorded as an asset.This error would cause:

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

Filters