Exam 11: Stockholders Equity

A company issued 4,000 shares of $5 par common stock for $30 per share.The company purchased 1,200 shares as treasury stock at $32 per share.Later, the company reissued 400 shares of the treasury stock at $34 per share.Which of the following is true?

All changes in all stockholders' equity accounts must be shown in the Stockholders' Equity section of the balance sheet.

Distribution of additional shares of stock and reduction of the par value of the stock is ______________________________.

Treasury stock is stock that has been issued, but not currently outstanding.

If a company purchases treasury stock for $10,000 and then reissues it for $3,000, the difference of $7,000 is

If Idaho 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:

The cumulative feature of stock allows the firm to eliminate a class of stock by paying the stockholders a specified amount.

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

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 payment of dividends is a financing activity.

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. -Shares of stock that are repurchased and then discontinued by removing them from the accounting records.

Select the letter of the term each statement best describes. -The amount received for the issuance of stock in excess of the par value of the stock.

Select the letter of the term each statement best describes. -Net income that has been earned by the corporation but not paid out as dividends.

Which of the following should be considered when a company decides to declare a cash dividend on common stock?

Net income that has been earned by the corporation but not paid out as dividends are ______________________________.

Perry Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital-Common account will increase by

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. -Allows the holders of this stock to share in the distribution of dividends above the predetermined per share amount.

Stock dividends involve the issuance of additional shares of stock.

The primary reason for a stock split is to

Select the letter of the term each statement best describes. -Total stockholders' equity divided by the number of shares of common stock outstanding.