Question 1

Match the following terms to their correct definition.
-In a stock option plan, the price at which employees can buy the stock.

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 2

On January 15, a corporation paid a cash dividend that had been declared prior to the end of its previous fiscal year. The entry to pay the dividends includes a debit to

Accepted Answer

A) cash and a credit to dividends payable. 
B) dividends payable and a credit to cash 
C) retained earnings and a credit to dividends payable. 
D) dividends payable and a credit to retained earnings. 
A) cash and a credit to dividends payable. 
B) dividends payable and a credit to cash 
C) retained earnings and a credit to dividends payable. 
D) dividends payable and a credit to retained earnings.

Question 3

The stockholders' equity section of the balance sheet appears as follows at January 1, 2019:   On March 1, 2019, the company repurchased 800 shares of its common stock at $12 per share but on April 6, 2019, it reissued 600 shares of the shares at $20 per share.
A)Prepare the journal entries to record for the March 1 and April 6 transactions.
B)How many shares of common stock are outstanding at March 31, 2019, and April 30, 2019, respectively?

Accepted Answer

The answer of The stockholders' equity section of the balance...

Question 4

The following stockholders' equity information was available at January 1, 2020:   Record the purchase of the treasury stock on November 30, 2019 and the January 10, 2020 sale of 500 shares of treasury stock for $70 per share.

Accepted Answer

The answer of The following stockholders' equity information was available...

Question 5

If a corporation declares a 2-for-1 stock split, which of the following is true?

Accepted Answer

A) A journal entry is required to show the effect on the stockholders' equity accounts. 
B) The stockholders will have a higher proportionate ownership share after the split. 
C) The par value will be reduced to half of the pre-split par value. 
D) The market price of the stock is expected to increase after the split. 
A) A journal entry is required to show the effect on the stockholders' equity accounts. 
B) The stockholders will have a higher proportionate ownership share after the split. 
C) The par value will be reduced to half of the pre-split par value. 
D) The market price of the stock is expected to increase after the split.

Question 6

Match the terms to the definitions.
-Authorization for the corporation to redeem preferred shares 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 7

A corporation reported the following amounts on its balance sheet at December 1, 2019:   During December of 2019, the following transactions occurred:
December 5
Declared and paid a 20% preferred stock dividend when the market price of the preferred stock was $12 per share.
December 21
Distributed a 2-for-1 stock split of the common stock when the market price of the common stock was $10 per share.
​
A)What journal entries are required to record these stock transactions?
B)How many preferred shares are outstanding at December 31, 2019?
C)How many common shares are outstanding at December 31, 2019?
D)What effect did the stock dividend have on the par value of the preferred stock?
E)What effect did the stock split have on the par value of the common stock?

Accepted Answer

The answer of A corporation reported the following amounts on...

Question 8

The stated value is the price at which employees can exercise stock options.

Accepted Answer

The stated value, often referred to as t

Question 9

On June 1, a board of directors declared a $3 per share cash dividend, payable on June 30 to all common stockholders of record on June 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued, and 200 shares in the treasury. The entry to record the dividend declaration increases

Accepted Answer

A) a liability account by $2,400. 
B) an asset account by $3,000. 
C) an expense account by $2,400. 
D) a stockholders' equity account by $3,000. 
A) a liability account by $2,400. 
B) an asset account by $3,000. 
C) an expense account by $2,400. 
D) a stockholders' equity account by $3,000.

Question 10

Earnings per share is an indication of how much

Accepted Answer

A) cash the company has for each share of outstanding common stock. 
B) the company earned for each share of outstanding common stock. 
C) the company paid as dividends for each share of common stock held by stockholders. 
D) the company earned for each share of outstanding common and preferred stock. 
A) cash the company has for each share of outstanding common stock. 
B) the company earned for each share of outstanding common stock. 
C) the company paid as dividends for each share of common stock held by stockholders. 
D) the company earned for each share of outstanding common and preferred stock.

Question 11

Preferred stockholders typically do not have the right to vote at stockholders meetings.

Accepted Answer

Preferred stockholders typically do not

Question 12

Match the following terms to their correct definition.
-Another term for articles of incorporation

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 13

Comprehensive income represents the increase in net assets resulting from all transactions occurring during the accounting period except transactions with owners.

Accepted Answer

Comprehensive income is a broad measure

Question 14

An addition to employee compensation whereby the corporation provides a right to purchase stock at a set price is called

Accepted Answer

A) treasury stock. 
B) a stock option. 
C) the conversion privilege. 
D) a call option. 
A) treasury stock. 
B) a stock option. 
C) the conversion privilege. 
D) a call option.

Question 15

Match the terms to the definitions.
-The preferred stock feature which provides for preferred stock to be exchanged for common stock.

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 16

A corporation is authorized by its corporate charter to issue 50,000 shares of preferred stock with a 7% dividend rate and a par value of $10 per share, and 750,000 shares of common stock with a par value of $2 per share. On January 15 of the current year, 2,000 shares of preferred stock was issued for $14 per share along with 10,000 shares of common stock for $2.50 per share.
A)Record the stock issues described above.
B)How much total cash was raised through stock issuances?

Accepted Answer

A) To record the stock issues described

Question 17

Match the terms to the definitions.
-A measure of the proportion of dividends to earnings.

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 18

What is the difference between authorized, issued, and outstanding shares?

Accepted Answer

Authorized, issued, and outstanding shar

Question 19

Suppose a corporation issues 5,000 shares of $1 par common stock for $30 per share. In addition to the increase in cash, what effect does this transaction have on the accounting equation?

Accepted Answer

A) Retained earnings increases $150,000. 
B) Paid-in capital in excess of par increases $145,000. 
C) Common stock increases $150,000. 
D) Gain on stock issuance increases $145,000. 
A) Retained earnings increases $150,000. 
B) Paid-in capital in excess of par increases $145,000. 
C) Common stock increases $150,000. 
D) Gain on stock issuance increases $145,000.

Question 20

The following information is available at January 1, 2019:   On June 10, the company repurchased and retired 1,000 shares of its outstanding common stock for $10 per share. Record this transaction.

Accepted Answer

The answer of The following information is available at January...

Match the following terms to their correct definition. -In a stock option plan, the price at which employees can buy the stock.

On January 15, a corporation paid a cash dividend that had been declared prior to the end of its previous fiscal year. The entry to pay the dividends includes a debit to

The following stockholders' equity information was available at January 1, 2020: Record the purchase of the treasury stock on November 30, 2019 and the January 10, 2020 sale of 500 shares of treasury stock for $70 per share.

If a corporation declares a 2-for-1 stock split, which of the following is true?

Match the terms to the definitions. -Authorization for the corporation to redeem preferred shares in the future.

The stated value is the price at which employees can exercise stock options.

Earnings per share is an indication of how much

Preferred stockholders typically do not have the right to vote at stockholders meetings.

Match the following terms to their correct definition. -Another term for articles of incorporation

Comprehensive income represents the increase in net assets resulting from all transactions occurring during the accounting period except transactions with owners.

An addition to employee compensation whereby the corporation provides a right to purchase stock at a set price is called

Match the terms to the definitions. -The preferred stock feature which provides for preferred stock to be exchanged for common stock.

Match the terms to the definitions. -A measure of the proportion of dividends to earnings.

What is the difference between authorized, issued, and outstanding shares?

Suppose a corporation issues 5,000 shares of $1 par common stock for $30 per share. In addition to the increase in cash, what effect does this transaction have on the accounting equation?

The following information is available at January 1, 2019: On June 10, the company repurchased and retired 1,000 shares of its outstanding common stock for $10 per share. Record this transaction.

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 following terms to their correct definition. -In a stock option plan, the price at which employees can buy the stock.

On January 15, a corporation paid a cash dividend that had been declared prior to the end of its previous fiscal year. The entry to pay the dividends includes a debit to

The following stockholders' equity information was available at January 1, 2020: Record the purchase of the treasury stock on November 30, 2019 and the January 10, 2020 sale of 500 shares of treasury stock for $70 per share.

If a corporation declares a 2-for-1 stock split, which of the following is true?

Match the terms to the definitions. -Authorization for the corporation to redeem preferred shares in the future.

The stated value is the price at which employees can exercise stock options.

Earnings per share is an indication of how much

Preferred stockholders typically do not have the right to vote at stockholders meetings.

Match the following terms to their correct definition. -Another term for articles of incorporation

Comprehensive income represents the increase in net assets resulting from all transactions occurring during the accounting period except transactions with owners.

An addition to employee compensation whereby the corporation provides a right to purchase stock at a set price is called

Match the terms to the definitions. -The preferred stock feature which provides for preferred stock to be exchanged for common stock.

Match the terms to the definitions. -A measure of the proportion of dividends to earnings.

What is the difference between authorized, issued, and outstanding shares?

Suppose a corporation issues 5,000 shares of $1 par common stock for $30 per share. In addition to the increase in cash, what effect does this transaction have on the accounting equation?

The following information is available at January 1, 2019: On June 10, the company repurchased and retired 1,000 shares of its outstanding common stock for $10 per share. Record this transaction.

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