Question 1

Accumulated Other Comprehensive Income is the cumulative change in __________ related to other comprehensive income that bypasses net income.

Accepted Answer

equity

Question 2

The process of becoming a corporation is known as __________.

Accepted Answer

incorporating

Question 3

What are the effects of a stock dividend?

Accepted Answer

Stock dividends affect only shareholders' equity accounts, have no effect on total shareholders' equity, and have no effect on assets or liabilities.

Question 4

A stock dividend increases the shareholder's percentage of stock held.

Accepted Answer

A) True 
 B)False

Question 5

Non-monetary exchanges can be __________ exchanged for an asset.

Accepted Answer

The answer of Non-monetary exchanges can be __________ exchanged for...

Question 6

NDP Co. issues 750 preferred shares for $10 per share and 1,000 common shares for $15 per share. Identify the entry that would be recorded.

Accepted Answer

Debit Cash $22,500;

Question 7

Casey Company reacquired 5,000 shares of its common stock for $13/share. The debit to treasury shares will be:

Accepted Answer

A)  $10,000. 
B)  $65,000. 
C)  $75,000. 
D)  $5,000. 
E)  based on the last treasury stock transaction. 
A)  $10,000. 
B)  $65,000. 
C)  $75,000. 
D)  $5,000. 
E)  based on the last treasury stock transaction.

Question 8

Which of the following is NOT a reason for a company to purchase treasury shares?

Accepted Answer

A)  To reward valued employees 
B)  To avoid a takeover by an outside company 
C)  To buy the shares at a high price to increase total shareholders' equity 
D)  To support the company's stock price 
E)  To buy the shares when the price is low and sell when the price is higher 
A)  To reward valued employees 
B)  To avoid a takeover by an outside company 
C)  To buy the shares at a high price to increase total shareholders' equity 
D)  To support the company's stock price 
E)  To buy the shares when the price is low and sell when the price is higher

Question 9

Where is the Treasury Shares account reported on the Balance Sheet?

Accepted Answer

The Treasury Shares account is

Question 10

What journal entry is recorded on the date of payment?

Accepted Answer

Debit Divi

Question 11

The denominator in calculating return on common equity is:

Accepted Answer

A)  average common shareholders' equity. 
B)  average shareholders' equity. 
C)  net income. 
D)  total shareholders' equity. 
E)  net income available to common shareholders. 
A)  average common shareholders' equity. 
B)  average shareholders' equity. 
C)  net income. 
D)  total shareholders' equity. 
E)  net income available to common shareholders.

Question 12

Cumulative common shares will pay dividends in arrears.

Accepted Answer

A) True 
 B)False

Question 13

A stock dividend affects total shareholders' equity.

Accepted Answer

A) True 
 B)False

Question 14

ABC Co. declares a $0.50 per share cash dividend on its common shares, of which 100,000 shares are outstanding. Record the journal entry to avoid a year-end closing entry of the dividends account.

Accepted Answer

Debit Retained Earni

Question 15

Treasury shares decreases the number of outstanding shares of stock.

Accepted Answer

A) True 
 B)False

Question 16

On the date of record:

Accepted Answer

A)  debit Dividends and credit Retained Earnings. 
B)  debit Dividends Payable and credit Cash. 
C)  no entry is required. 
D)  debit Retained Earnings and credit Dividends Payable. 
E)  debit Cash and credit Dividends Payable. 
A)  debit Dividends and credit Retained Earnings. 
B)  debit Dividends Payable and credit Cash. 
C)  no entry is required. 
D)  debit Retained Earnings and credit Dividends Payable. 
E)  debit Cash and credit Dividends Payable.

Question 17

Do preferred shareholders take less investment risk than common shareholders? Explain.

Accepted Answer

Corporations pay a f

Question 18

Are dividends in arrears a liability? Explain.

Accepted Answer

Dividends in arrears are not a

Question 19

If you own 500 shares (2% of a corporation's stock) and the corporation issues 15,000 new shares, how many of the new shares can you purchase under preemptive right?

Accepted Answer

A)  500 
B)  300 
C)  800 
D)  0 
E)  100 
A)  500 
B)  300 
C)  800 
D)  0 
E)  100

Question 20

What accounts are affected by a stock dividend and how?

Accepted Answer

Retained earnings is reduced by an amoun

Accumulated Other Comprehensive Income is the cumulative change in __________ related to other comprehensive income that bypasses net income.

The process of becoming a corporation is known as __________.

What are the effects of a stock dividend?

A stock dividend increases the shareholder's percentage of stock held.

Non-monetary exchanges can be __________ exchanged for an asset.

NDP Co. issues 750 preferred shares for $10 per share and 1,000 common shares for $15 per share. Identify the entry that would be recorded.

Casey Company reacquired 5,000 shares of its common stock for $13/share. The debit to treasury shares will be:

Which of the following is NOT a reason for a company to purchase treasury shares?

Where is the Treasury Shares account reported on the Balance Sheet?

What journal entry is recorded on the date of payment?

The denominator in calculating return on common equity is:

Cumulative common shares will pay dividends in arrears.

A stock dividend affects total shareholders' equity.

ABC Co. declares a $0.50 per share cash dividend on its common shares, of which 100,000 shares are outstanding. Record the journal entry to avoid a year-end closing entry of the dividends account.

Treasury shares decreases the number of outstanding shares of stock.

On the date of record:

Do preferred shareholders take less investment risk than common shareholders? Explain.

Are dividends in arrears a liability? Explain.

If you own 500 shares (2% of a corporation's stock) and the corporation issues 15,000 new shares, how many of the new shares can you purchase under preemptive right?

What accounts are affected by a stock dividend and how?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

The Cash Flow Statement

Financial Statement Analysis

Filters

Exam 10: Corporations: Share Capital and Retained Earnings

Accumulated Other Comprehensive Income is the cumulative change in __________ related to other comprehensive income that bypasses net income.

The process of becoming a corporation is known as __________.

What are the effects of a stock dividend?

A stock dividend increases the shareholder's percentage of stock held.

Non-monetary exchanges can be __________ exchanged for an asset.

NDP Co. issues 750 preferred shares for $10 per share and 1,000 common shares for $15 per share. Identify the entry that would be recorded.

Casey Company reacquired 5,000 shares of its common stock for $13/share. The debit to treasury shares will be:

Which of the following is NOT a reason for a company to purchase treasury shares?

Where is the Treasury Shares account reported on the Balance Sheet?

What journal entry is recorded on the date of payment?

The denominator in calculating return on common equity is:

Cumulative common shares will pay dividends in arrears.

A stock dividend affects total shareholders' equity.

ABC Co. declares a $0.50 per share cash dividend on its common shares, of which 100,000 shares are outstanding. Record the journal entry to avoid a year-end closing entry of the dividends account.

Treasury shares decreases the number of outstanding shares of stock.

On the date of record:

Do preferred shareholders take less investment risk than common shareholders? Explain.

Are dividends in arrears a liability? Explain.

If you own 500 shares (2% of a corporation's stock) and the corporation issues 15,000 new shares, how many of the new shares can you purchase under preemptive right?

What accounts are affected by a stock dividend and how?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

The Cash Flow Statement

Financial Statement Analysis

Filters