Question 1

When a company declares a 2-for-1 stock split,

Accepted Answer

A) stockholders' equity is doubled. 
B) there is no effect on total stockholders' equity. 
C) a shareholder who previously held 100 shares will have 300 shares after the split. 
D) the price of each share will be one third of what it was before the stock split. 
A) stockholders' equity is doubled. 
B) there is no effect on total stockholders' equity. 
C) a shareholder who previously held 100 shares will have 300 shares after the split. 
D) the price of each share will be one third of what it was before the stock split.

Question 2

Dali Company has 15,000 shares of stock authorized at January 1.Dali issues 4,500 shares to the stockholders during the year and then the company repurchases 1,500 shares as treasury stock.Based on this information, how many shares are outstanding at December 31?

Accepted Answer

A) 15,000 
B) 18,000 
C) 4,500 
D) 3,000 
A) 15,000 
B) 18,000 
C) 4,500 
D) 3,000

Question 3

Fairchild Company acquired a building valued at $210,000 for property tax purposes in exchange for 6,000 shares of its $10 par common stock.The stock is widely traded and selling for $31 per share.At what amount should the building be recorded by Fairchild Company?

Accepted Answer

A) $210,000 
B) $60,000 
C) $186,000 
D) $150,000 
A) $210,000 
B) $60,000 
C) $186,000 
D) $150,000

Question 4

Preferred stock receives first preference on voting rights.

Accepted Answer

A) True 
 B)False

Question 5

All issued stock is outstanding.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements with regard to large stock dividends is true?

Accepted Answer

A) As a result of the stock dividend, retained earnings is reduced by the par value of the stock issued. 
B) Retained earnings is reduced by the market value of the stock issued in the stock dividend. 
C) If the market price of the stock before a 50% stock dividend is $30, after the stock dividend it will be $45. 
D) As the result of a 50% stock dividend, a stockholder who had previously held 20 shares will then hold 40 shares. 
A) As a result of the stock dividend, retained earnings is reduced by the par value of the stock issued. 
B) Retained earnings is reduced by the market value of the stock issued in the stock dividend. 
C) If the market price of the stock before a 50% stock dividend is $30, after the stock dividend it will be $45. 
D) As the result of a 50% stock dividend, a stockholder who had previously held 20 shares will then hold 40 shares.

Question 7

The statement of stockholders' equity

Accepted Answer

A) is one of the required financial statements for the annual report, when changes have occurred in the stockholders' equity accounts. 
B) shows the changes in retained earnings for the period, which includes the increase or decrease as a result of net income or loss for the period, and dividends for the period. 
C) includes accounts, such as the retained earnings and common stock accounts, but not changes to the retained earnings account, since those items are reported on the statement of retained earnings. 
D) is used only if a corporation frequently issues common stock. 
A) is one of the required financial statements for the annual report, when changes have occurred in the stockholders' equity accounts. 
B) shows the changes in retained earnings for the period, which includes the increase or decrease as a result of net income or loss for the period, and dividends for the period. 
C) includes accounts, such as the retained earnings and common stock accounts, but not changes to the retained earnings account, since those items are reported on the statement of retained earnings. 
D) is used only if a corporation frequently issues common stock.

Question 8

Using the concept of comprehensive income, which of the following items is included as part of comprehensive income but not as part of net income?

Accepted Answer

A) Extraordinary items 
B) Accounting changes 
C) Unrealized holding gains or losses 
D) Loss on sale of investments 
A) Extraordinary items 
B) Accounting changes 
C) Unrealized holding gains or losses 
D) Loss on sale of investments

Question 9

Select the best answer from the list below to complete statements that follow.  
-An arbitrary amount that is stated on the face of the stock certificate is .

Accepted Answer

The answer of Select the best answer from the list...

When a company declares a 2-for-1 stock split,

Dali Company has 15,000 shares of stock authorized at January 1.Dali issues 4,500 shares to the stockholders during the year and then the company repurchases 1,500 shares as treasury stock.Based on this information, how many shares are outstanding at December 31?

Fairchild Company acquired a building valued at $210,000 for property tax purposes in exchange for 6,000 shares of its $10 par common stock.The stock is widely traded and selling for $31 per share.At what amount should the building be recorded by Fairchild Company?

Preferred stock receives first preference on voting rights.

All issued stock is outstanding.

Which of the following statements with regard to large stock dividends is true?

The statement of stockholders' equity

Using the concept of comprehensive income, which of the following items is included as part of comprehensive income but not as part of net income?

Select the best answer from the list below to complete statements that follow. -An arbitrary amount that is stated on the face of the stock certificate is .

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 11: Stockholders Equity

When a company declares a 2-for-1 stock split,

Dali Company has 15,000 shares of stock authorized at January 1.Dali issues 4,500 shares to the stockholders during the year and then the company repurchases 1,500 shares as treasury stock.Based on this information, how many shares are outstanding at December 31?

Fairchild Company acquired a building valued at $210,000 for property tax purposes in exchange for 6,000 shares of its $10 par common stock.The stock is widely traded and selling for $31 per share.At what amount should the building be recorded by Fairchild Company?

Preferred stock receives first preference on voting rights.

All issued stock is outstanding.

Which of the following statements with regard to large stock dividends is true?

The statement of stockholders' equity

Using the concept of comprehensive income, which of the following items is included as part of comprehensive income but not as part of net income?

Select the best answer from the list below to complete statements that follow. -An arbitrary amount that is stated on the face of the stock certificate is .

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters