Question 1

Match the terms to the definitions.
-Shares of stock that are distributed in a process known as capitalization of retained earnings.

Accepted Answer

A) Cumulative dividend preference 
B) Participating dividend preference 
C) Conversion privilege 
D) Call provision 
E) Stock split
F)Stock dividend
G)Retained earnings
H)Outstanding shares
I)Issued shares
J)Retired shares
K)Treasury stock
L)Paid-in capital in excess of par 
A) Cumulative dividend preference 
B) Participating dividend preference 
C) Conversion privilege 
D) Call provision 
E) Stock split
F)Stock dividend
G)Retained earnings
H)Outstanding shares
I)Issued shares
J)Retired shares
K)Treasury stock
L)Paid-in capital in excess of par

Question 2

Match the terms to the definitions.
-A form of compensation whereby employees are granted rights to purchase shares of stock in the future.

Accepted Answer

A) Authorized shares 
B) Issued shares 
C) Outstanding shares 
D) Par value 
E) Stated capital (legal capital)
F)Preemptive right
G)Retained earnings
H)Stock split
I)Stock option
J)Stock warrant
K)Treasury stock
L)Call provision
M)Earnings per share
N)Dividend yield ratio
O)Dividend payout ratio 
A) Authorized shares 
B) Issued shares 
C) Outstanding shares 
D) Par value 
E) Stated capital (legal capital)
F)Preemptive right
G)Retained earnings
H)Stock split
I)Stock option
J)Stock warrant
K)Treasury stock
L)Call provision
M)Earnings per share
N)Dividend yield ratio
O)Dividend payout ratio

Question 3

The equity section of a balance sheet at December 31, 2021 is provided below:   No dividends were paid during 2019 and 2020, but the company plans to issue a cash dividend of $2,000 on December 31, 2021. Determine the total dividend for each class of stock under each of the following assumptions:
A)The preferred stock is noncumulative and nonparticipating.
B)The preferred stock is cumulative and nonparticipating.

Accepted Answer

The answer of The equity section of a balance sheet...

Question 4

Which of the following statements is true regarding a corporation's purchase of treasury stock?

Accepted Answer

A) The cost of treasury stock is a reduction in stockholders' equity. 
B) Dividends must still be paid on treasury stock because it is still issued. 
C) Treasury stock is reported as an asset because it is considered an investment in the corporation's own stock. 
D) Treasury stock is no longer considered issued once it is back in the hands of the issuer. 
A) The cost of treasury stock is a reduction in stockholders' equity. 
B) Dividends must still be paid on treasury stock because it is still issued. 
C) Treasury stock is reported as an asset because it is considered an investment in the corporation's own stock. 
D) Treasury stock is no longer considered issued once it is back in the hands of the issuer.

Question 5

Compare and contrast stock dividends and stock splits.

Accepted Answer

Stock dividends and stock splits are bot

Question 6

Match the following terms to their correct definition.
-Dividends that are paid out of contributed capital because retained earnings have been reduced to zero.

Accepted Answer

A) Articles of incorporation 
B) Common stock 
C) Contributed capital 
D) Corporate charter 
E) Current dividend preference
F)Date of record
G)Declaration date
H)Dividends in arrears
I)Equity
J)Exercise (strike) price
K)Liquidating dividend
L)No-par stock
M)Payment date
N)Preferred stock
O)Prior period adjustment
P)Return on common equity 
A) Articles of incorporation 
B) Common stock 
C) Contributed capital 
D) Corporate charter 
E) Current dividend preference
F)Date of record
G)Declaration date
H)Dividends in arrears
I)Equity
J)Exercise (strike) price
K)Liquidating dividend
L)No-par stock
M)Payment date
N)Preferred stock
O)Prior period adjustment
P)Return on common equity

Question 7

A corporation was incorporated on January 1 of the current year. Its corporate charter provided for a maximum of 1,000,000 shares of common stock to be sold in the future of the corporation. In January, 150,000 shares were sold to the public and an additional 100,000 shares were sold in October. In November, 15,000 of the issued shares were bought back by the corporation. Complete the table below as of the end of the current year.
Quantities:
Authorized Shares
Issued Shares
Outstanding Shares
Treasury Shares

Accepted Answer

As of the end of the current year, the t

Question 8

After a corporation declares a cash dividend, what takes place on the date of record?

Accepted Answer

A) cash decreases 
B) liabilities decrease 
C) stockholders' equity decreases 
D) no entry is necessary 
A) cash decreases 
B) liabilities decrease 
C) stockholders' equity decreases 
D) no entry is necessary

Question 9

Which of the following is one of the elements of stockholders' equity?

Accepted Answer

A) net income 
B) dividends payable 
C) retained earnings 
D) loss on the sale of equipment 
A) net income 
B) dividends payable 
C) retained earnings 
D) loss on the sale of equipment

Question 10

Stated capital is the amount of capital that, under law, cannot be returned to the corporation's owners except upon liquidation.

Accepted Answer

Stated capital, also known as legal capi

Question 11

LaFarge North America
The following information relates to this company's stockholders' equity accounts:
  
-Refer to LaFarge North America. How many shares of common stock are outstanding?

Accepted Answer

A) 68,000 
B) 78,000 
C) 98,000 
D) 100,000 
A) 68,000 
B) 78,000 
C) 98,000 
D) 100,000

Question 12

Match the terms to the definitions.
-A stated amount of capital that cannot be returned to the stockholders unless the corporation is liquidated.

Accepted Answer

A) Authorized shares 
B) Issued shares 
C) Outstanding shares 
D) Par value 
E) Stated capital (legal capital)
F)Preemptive right
G)Retained earnings
H)Stock split
I)Stock option
J)Stock warrant
K)Treasury stock
L)Call provision
M)Earnings per share
N)Dividend yield ratio
O)Dividend payout ratio 
A) Authorized shares 
B) Issued shares 
C) Outstanding shares 
D) Par value 
E) Stated capital (legal capital)
F)Preemptive right
G)Retained earnings
H)Stock split
I)Stock option
J)Stock warrant
K)Treasury stock
L)Call provision
M)Earnings per share
N)Dividend yield ratio
O)Dividend payout ratio

Question 13

Match the following terms to their correct definition.
-Represents the owners' claims against the assets of a corporation after all liabilities have been deducted.

Accepted Answer

A) Articles of incorporation 
B) Common stock 
C) Contributed capital 
D) Corporate charter 
E) Current dividend preference
F)Date of record
G)Declaration date
H)Dividends in arrears
I)Equity
J)Exercise (strike) price
K)Liquidating dividend
L)No-par stock
M)Payment date
N)Preferred stock
O)Prior period adjustment
P)Return on common equity 
A) Articles of incorporation 
B) Common stock 
C) Contributed capital 
D) Corporate charter 
E) Current dividend preference
F)Date of record
G)Declaration date
H)Dividends in arrears
I)Equity
J)Exercise (strike) price
K)Liquidating dividend
L)No-par stock
M)Payment date
N)Preferred stock
O)Prior period adjustment
P)Return on common equity

Question 14

Which of the following types of information is not set forth within the corporate charter?

Accepted Answer

A) Name and purpose of the corporation. 
B) Names of those responsible for incorporating the business. 
C) Dates of future dividend distributions. 
D) Provisions describing how stock may be issued. 
A) Name and purpose of the corporation. 
B) Names of those responsible for incorporating the business. 
C) Dates of future dividend distributions. 
D) Provisions describing how stock may be issued.

Question 15

Liquidating dividends must be charged against the capital stock accounts because the corporation's retained earnings are appropriated for future business expansion.

Accepted Answer

Liquidating dividends are distributions

Question 16

A corporation had several transactions affecting its stockholders' equity accounts during the year. In the space provided, show the impact on the accounting equation by placing a plus sign (+) for an increase, a minus sign (−) for a decrease, or N/A for no impact or no total net impact.

Accepted Answer

The answer of A corporation had several transactions affecting its...

Question 17

Which of the following statements is true pertaining to participating preferred stock?

Accepted Answer

A) Its issuance provides no flexibility to the issuing company because its terms always mandate a regular, annual dividend. 
B) There is a legal requirement for a corporation to declare a regular, annual dividend. 
C) It includes the right to share in dividends in excess of the regular, annual dividend. 
D) It includes the right to participate in management decisions through voting privileges. 
A) Its issuance provides no flexibility to the issuing company because its terms always mandate a regular, annual dividend. 
B) There is a legal requirement for a corporation to declare a regular, annual dividend. 
C) It includes the right to share in dividends in excess of the regular, annual dividend. 
D) It includes the right to participate in management decisions through voting privileges.

Match the terms to the definitions. -Shares of stock that are distributed in a process known as capitalization of retained earnings.

Match the terms to the definitions. -A form of compensation whereby employees are granted rights to purchase shares of stock in the future.

Which of the following statements is true regarding a corporation's purchase of treasury stock?

Compare and contrast stock dividends and stock splits.

Match the following terms to their correct definition. -Dividends that are paid out of contributed capital because retained earnings have been reduced to zero.

After a corporation declares a cash dividend, what takes place on the date of record?

Which of the following is one of the elements of stockholders' equity?

Stated capital is the amount of capital that, under law, cannot be returned to the corporation's owners except upon liquidation.

LaFarge North America The following information relates to this company's stockholders' equity accounts: -Refer to LaFarge North America. How many shares of common stock are outstanding?

Match the terms to the definitions. -A stated amount of capital that cannot be returned to the stockholders unless the corporation is liquidated.

Match the following terms to their correct definition. -Represents the owners' claims against the assets of a corporation after all liabilities have been deducted.

Which of the following types of information is not set forth within the corporate charter?

Liquidating dividends must be charged against the capital stock accounts because the corporation's retained earnings are appropriated for future business expansion.

A corporation had several transactions affecting its stockholders' equity accounts during the year. In the space provided, show the impact on the accounting equation by placing a plus sign (+) for an increase, a minus sign (−) for a decrease, or N/A for no impact or no total net impact.

Which of the following statements is true pertaining to participating preferred stock?

Accounting and The Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

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Exam 10: Stockholders Apos Equity

Match the terms to the definitions. -Shares of stock that are distributed in a process known as capitalization of retained earnings.

Match the terms to the definitions. -A form of compensation whereby employees are granted rights to purchase shares of stock in the future.

Which of the following statements is true regarding a corporation's purchase of treasury stock?

Compare and contrast stock dividends and stock splits.

Match the following terms to their correct definition. -Dividends that are paid out of contributed capital because retained earnings have been reduced to zero.

After a corporation declares a cash dividend, what takes place on the date of record?

Which of the following is one of the elements of stockholders' equity?

Stated capital is the amount of capital that, under law, cannot be returned to the corporation's owners except upon liquidation.

LaFarge North America The following information relates to this company's stockholders' equity accounts: -Refer to LaFarge North America. How many shares of common stock are outstanding?

Match the terms to the definitions. -A stated amount of capital that cannot be returned to the stockholders unless the corporation is liquidated.

Match the following terms to their correct definition. -Represents the owners' claims against the assets of a corporation after all liabilities have been deducted.

Which of the following types of information is not set forth within the corporate charter?

Liquidating dividends must be charged against the capital stock accounts because the corporation's retained earnings are appropriated for future business expansion.

A corporation had several transactions affecting its stockholders' equity accounts during the year. In the space provided, show the impact on the accounting equation by placing a plus sign (+) for an increase, a minus sign (−) for a decrease, or N/A for no impact or no total net impact.

Which of the following statements is true pertaining to participating preferred stock?

Accounting and The Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters