Exam 11: Stockholders Equity

Using the concept of comprehensive income and assuming that the entity has available-for-sale securities, 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 1-11 that follow. -The amount received for each share of stock in excess of par value is .

If Llama Company has paid out more in dividends than it has had in net income, over the lifetime of the company, then the balances in the Stockholders' Equity should show:

Select the best answer from the list below to complete statements 1-11 that follow. -Distribution of additional shares of stock and reduction of the par value of the stock is ______________________________.

None of the Stockholders' Equity accounts are affected by the stock split.

Chad Darrow, CFO of your company is considering constructing a deal with Extreme Industries, whereby stock is issued in exchange for an asset custom extrusion equipment valued at $400,000 by an outside appraiser. The stock to be exchanged is a new class of preferred stock that has not yet been traded in the open market. He has asked that you draft a memo to Marc Lyon, CEO about the valuation of the asset to be used in the exchange. In your memo address the reporting amount for the asset and how fair market value could be determined.

What is comprehensive income and what is contained in a statement of comprehensive income?

Stock dividends affect the par value per share of the stock.

The primary reason for a stock split is to

Assume that Cosmo Company's Stockholders' Equity category of the balance sheet appears as follows as of December 31, 2015: On May 1, 2016, Cosmo declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split. REQUIRED: 1. How many shares of stock are outstanding at year-end? 2. What is the par value per share of these shares? 3. Develop the Stockholders' Equity category of Cosmo's balance sheet as of December 31, 2016.

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 item would not be recorded until declared?

Select the best answer from the list below to complete statements 1-11 that follow. -The document that specifies how much the owners will invest, what their salaries will be, and how profits will be shared in a partnership is known as a .

Book value indicates the rights that stockholders have, based on recorded values, to the net assets in the event of liquidation.

Select the best answer from the list below to complete statements 1-11 that follow. -A ________________ allows the firm to eliminate a class of stock by paying the stockholders a specified amount.

A 15% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

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. -Issuance of common stock for cash

Select the best answer from the list below to complete statements 1-11 that follow. -Assuming no preferred stock exists, total stockholders' equity divided by the number of shares of common stock outstanding is equal to ________________________________________.

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

What section of the statement of cash flows is related to the Stockholders' Equity section of the balance sheet? Name four different transactions that are reported in that section that relate to the statement of cash flows.

The FASB has allowed certain items to be reported directly to stockholders' equity in an effort to mitigate the possibility of income fluctuating widely from period to period.