Exam 11: 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?

A 2-for-1 stock split increases the par value per share.

Stockholders' equity is composed of three parts: contributed capital, earnings retained in the business, and dividends paid.

What is the effect of a stock dividend on stockholders' equity?

An accounting transaction is not recorded when a corporation declares and executes a stock split.

Anole Company was incorporated as a new business on January 1, 2016.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock.On January 1, 2016, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31, 2016, was $375,000. ​ -Refer to the information about Anole Company. ​ The amount of Anole's total contributed capital at December 31, 2016, is

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). -Payment of cash dividend on preferred stock

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.

Comprehensive income is the increase in net assets resulting from all transactions occurring during an accounting period except stockholders' investments and dividends.

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

Select the statement on which each of the items provided below would be reported. -Net income for the period.

Select the statement on which each of the items provided below would be reported. -Foreign currency translation adjustments.

Which of the following is reported as a financing activity?

Which of the following combinations appropriately reflects the type of accounts represented by the Treasury Stock account and Additional Paid-in Capital-Treasury Stock account? ​ Treasury Stock Additional Paid-in Capital-Treasury Stock a.contra stockholders' equity stockholders' equity b.contra stockholders' equity contra stockholders' equity c. stockholders' equity stockholders' equity d. retained earnings retained earnings

The annual dividend amount divided by the annual net income is ________________________.

Ari's Cafe began operations on March 1, 2016.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?

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)

When treasury stock is reissued and the cost is less than the reissue price, the difference increases additional paid-in capital.

The issuance of stock is reported as a financing activity.

In 2016, Dickens Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000.During 2016, the only dividends Dickens declared were $46,000 in cash to the common stockholders.How much cash was paid to the common stockholders?