Exam 11: Reporting and Analyzing Stockholders Equity

Herman Corporation had net income of $100,000 and paid dividends of $25,000 to common stockholders and $20,000 to preferred stockholders in 2020.Herman Corporation's common stockholders' equity at the beginning and end of 2020 was $450,000 and $550,000, respectively.Herman Corporation's payout ratio for 2020 is

The par value of a stock

If no-par stock is issued without a stated value, then

Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.

The declaration of a stock dividend increases liabilities and decreases equity.

Ferman Corporation had net income of $140,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2020.Ferman Corporation's common stockholders' equity at the beginning and end of 2020 was $870,000 and $1,130,000, respectively.Ferman Corporation's payout ratio for 2020 was

A corporation records a dividend-related liability

A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock become legal capital.

Racer Corporation's December 31, 2020 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, Racer's total stockholders' equity was

The two ways that a corporation can be classified by purpose are

A stockholder who receives a stock dividend would

The chief accounting officer in a company is known as the

The payout ratio is computed by dividing

If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation.

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

Which one of the following events would not require a journal entry on a corporation's books?

Treasury stock is

The Common Stock Distributable account is classified as a current liability.

Dividends in arrears on cumulative preferred stock