Question 1

Select the statement on which each of the items provided below would be reported.
-Issuance of common stock.

Accepted Answer

A) Statement of retained earnings 
B) Statement of stockholders' equity 
C) Items that may require reporting on either statement 
D) Items not reported on either of the statements 
A) Statement of retained earnings 
B) Statement of stockholders' equity 
C) Items that may require reporting on either statement 
D) Items not reported on either of the statements

Question 2

At December 31, 2016, Corning Company has the following:
Common Stock, $10 par, 10,000 shares authorized, 9,000 issued, 8,000 outstanding
Preferred Stock, $100 par, 8%, cumulative, 1,000 shares authorized, issued, and outstanding
The company did not pay any dividend during 2015 or 2014.
REQUIRED:
Compute the amount of dividend to be received by the common and preferred stockholders in 2016 if the company declared a dividend of $60,000.

Accepted Answer

The answer of At December 31, 2016, Corning Company has...

Question 3

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N.
-Distribution of stock dividend

Accepted Answer

A) Operating - O 
B) Investing - I 
C) Financing - F 
D) Not separately reported - N 
A) Operating - O 
B) Investing - I 
C) Financing - F 
D) Not separately reported - N

Question 4

Venture Enterprises' accountant determined the following: Common stock, $0.01 par value $50,000 Where would this item be reported on Venture's financial statements?

Accepted Answer

A)  In the Stockholders' Equity section of the balance sheet 
B)  In the Treasury Stock section of the balance sheet 
C)  On the statement of retained earnings 
D)  On both the balance sheet and statement of retained earnings 
A)  In the Stockholders' Equity section of the balance sheet 
B)  In the Treasury Stock section of the balance sheet 
C)  On the statement of retained earnings 
D)  On both the balance sheet and statement of retained earnings

Question 5

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity. Items are used only once.
-Which type of stock decreases stockholders' equity?

Accepted Answer

A) Preferred stock issued by Carlton 
B) Amount received by Carlton in excess of par value when preferred stock was issued 
C) Dividends in arrears on Carlton preferred stock 
D) Cash dividend declared but unpaid on Carlton stock 
E) Stock dividend declared but unissued by Carlton
F)Treasury stock
G)Amount received in excess of cost when treasury stock is reissued by MJ
H)Retained earnings 
A) Preferred stock issued by Carlton 
B) Amount received by Carlton in excess of par value when preferred stock was issued 
C) Dividends in arrears on Carlton preferred stock 
D) Cash dividend declared but unpaid on Carlton stock 
E) Stock dividend declared but unissued by Carlton
F)Treasury stock
G)Amount received in excess of cost when treasury stock is reissued by MJ
H)Retained earnings

Question 6

Explain the two ways that a dividend rate on preferred stock may be stated by giving examples.

Accepted Answer

The examples in student answers may vary

Question 7

Ari's Cafe began operations on March 1, 2015. The corporate charter authorized the issuance of 3,000 shares of $2 par value common stock and 1,000 shares of $3 par value, 8% cumulative preferred stock. The company's fiscal year ends on February 28. Ari's sold 500 shares of common stock at $6 per share on April 1. What impact does the entry to record the April 1 transaction have on total stockholders' equity?

Accepted Answer

A)  No effect 
B)  Increase by $1,000 
C)  Increase by $3,000 
D)  Increase by $6,000 
A)  No effect 
B)  Increase by $1,000 
C)  Increase by $3,000 
D)  Increase by $6,000

Question 8

Lakeview Company reported the following amounts on its balance sheet at December 1, 2015:
   The following transactions occurred during December:
1. Declared a 20% stock dividend on common stock on December 3, when the stock was selling at $12 per share. The stock dividend will be distributed on December 20, 2015.
2. Distributed the common stock dividend on December 20.
3. Approved a 2-for-1 stock split of the common stock on December 28, when the stock was selling for $20 per share.
A Show the effect of the transactions on the accounting equation.
   B Answer the following questions:
1. How many common shares are outstanding at December 31, 2015?
2. What effect will the stock split have on the stock's market value?

Accepted Answer

A
1.
 @#IMG-DLM& 2.
 @#IMG-DLM& 
3. No effect.
B.

Question 9

Tropical Co. declared a cash dividend of $30,000. This transaction includes an

Accepted Answer

A)  decrease to Cash of $30,000. 
B)  increase to Retained Earnings of $30,000. 
C)  decrease to Retained Earnings of $30,000. 
D)  decrease to Cash Dividend Payable of $30,000. 
A)  decrease to Cash of $30,000. 
B)  increase to Retained Earnings of $30,000. 
C)  decrease to Retained Earnings of $30,000. 
D)  decrease to Cash Dividend Payable of $30,000.

Question 10

The all-inclusive income approach requires that all events and transactions that affect income should be reported on the income statement to help prevent the manipulation of income.

Accepted Answer

A) True 
 B)False

Question 11

Under IFRS, an item such as a convertible bond must be separated into two parts, showing one part in the Liability
category and the other part in the Stockholders' Equity category.

Accepted Answer

A) True 
 B)False

Question 12

Match the terms to the definitions by selecting the letter of the term. Each term may be used more than once or not at all.
-The holders of this stock have the right to dividends in arrears before the current year dividend is distributed.

Accepted Answer

A) cumulative feature 
B) stock dividend 
C) retired stock 
D) retained earnings 
E) callable feature
F)convertible feature
G)outstanding shares
H)treasury stock
I)participating feature
J)additional paid-in capital 
A) cumulative feature 
B) stock dividend 
C) retired stock 
D) retained earnings 
E) callable feature
F)convertible feature
G)outstanding shares
H)treasury stock
I)participating feature
J)additional paid-in capital

Question 13

The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents

Accepted Answer

A)  earnings that have not been distributed to shareholders. 
B)  cash in the bank. 
C)  the amount of cash available for dividends. 
D)  revenues for all past years of operations. 
A)  earnings that have not been distributed to shareholders. 
B)  cash in the bank. 
C)  the amount of cash available for dividends. 
D)  revenues for all past years of operations.

Question 14

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N.
-Reissuance of common stock held as treasury stock

Accepted Answer

A) Operating - O 
B) Investing - I 
C) Financing - F 
D) Not separately reported - N 
A) Operating - O 
B) Investing - I 
C) Financing - F 
D) Not separately reported - N

Question 15

On January 1, 2015, Bogart Acres Company issued 10,000 shares of 10%, $20 par value cumulative preferred stock. In 2015 and 2016, no dividends were declared on preferred stock. In 2017, Bogart had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. If they have $200,000 available for dividends in 2017, how much could it pay to the common stockholders?

Accepted Answer

A)  $140,000 
B)  $160,000 
C)  $180,000 
D)  $200,000 
A)  $140,000 
B)  $160,000 
C)  $180,000 
D)  $200,000

Question 16

All of the following are reasons for a company to repurchase its previously issued stock, except:

Accepted Answer

A)  to support the market price of the stock. 
B)  to resell to employees. 
C)  to increase the shares outstanding. 
D)  for bonuses to employees. 
A)  to support the market price of the stock. 
B)  to resell to employees. 
C)  to increase the shares outstanding. 
D)  for bonuses to employees.

Question 17

The Stockholders' Equity section of Stallion Tack Shack balance sheet on January 1, 2015, appeared as follows:
   On March 1, 2015, Stallion reacquired 3,000 shares of common stock at $8 per share. Answer the following questions:
A What amount would be reported on the March 31, 2015, balance sheet for treasury stock?
B What is the number of outstanding shares at March 31, 2015?
C How much is total stockholders' equity to be reported on the March 31, 2015 balance sheet?

Accepted Answer

A 3,000 shares × $8 = $24,000

Question 18

Cash dividends become a liability to a corporation on the date of record.

Accepted Answer

A) True 
 B)False

Question 19

With regard to a corporation's stock, par value is

Accepted Answer

A)  the current market price of the stock. 
B)  an arbitrary amount that exists to fulfill legal requirements. 
C)  the amount at which the stock has been repurchased. 
D)  the amount at which treasury stock can be sold. 
A)  the current market price of the stock. 
B)  an arbitrary amount that exists to fulfill legal requirements. 
C)  the amount at which the stock has been repurchased. 
D)  the amount at which treasury stock can be sold.

Question 20

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

Select the statement on which each of the items provided below would be reported. -Issuance of common stock.

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N. -Distribution of stock dividend

Venture Enterprises' accountant determined the following: Common stock, $0.01 par value $50,000 Where would this item be reported on Venture's financial statements?

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity. Items are used only once. -Which type of stock decreases stockholders' equity?

Explain the two ways that a dividend rate on preferred stock may be stated by giving examples.

Tropical Co. declared a cash dividend of $30,000. This transaction includes an

The all-inclusive income approach requires that all events and transactions that affect income should be reported on the income statement to help prevent the manipulation of income.

Under IFRS, an item such as a convertible bond must be separated into two parts, showing one part in the Liability category and the other part in the Stockholders' Equity category.

Match the terms to the definitions by selecting the letter of the term. Each term may be used more than once or not at all. -The holders of this stock have the right to dividends in arrears before the current year dividend is distributed.

The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N. -Reissuance of common stock held as treasury stock

All of the following are reasons for a company to repurchase its previously issued stock, except:

Cash dividends become a liability to a corporation on the date of record.

With regard to a corporation's stock, par value is

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?

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

Select the statement on which each of the items provided below would be reported. -Issuance of common stock.

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N. -Distribution of stock dividend

Venture Enterprises' accountant determined the following: Common stock, $0.01 par value $50,000 Where would this item be reported on Venture's financial statements?

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity. Items are used only once. -Which type of stock decreases stockholders' equity?

Explain the two ways that a dividend rate on preferred stock may be stated by giving examples.

Tropical Co. declared a cash dividend of $30,000. This transaction includes an

The all-inclusive income approach requires that all events and transactions that affect income should be reported on the income statement to help prevent the manipulation of income.

Under IFRS, an item such as a convertible bond must be separated into two parts, showing one part in the Liability category and the other part in the Stockholders' Equity category.

Match the terms to the definitions by selecting the letter of the term. Each term may be used more than once or not at all. -The holders of this stock have the right to dividends in arrears before the current year dividend is distributed.

The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N. -Reissuance of common stock held as treasury stock

All of the following are reasons for a company to repurchase its previously issued stock, except:

Cash dividends become a liability to a corporation on the date of record.

With regard to a corporation's stock, par value is

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?

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