Question 1

Preferred shares are considered a voting "class" of shares.

Accepted Answer

A) True 
 B)False

Question 2

ABC Company declares a $50,000 cash dividend to its shareholders. The company has 40,000 outstanding common shares and 15,000 $3 noncumulative preferred shares. Record the journal entry.

Accepted Answer

Debit Retained Earnings $50,00

Question 3

What is it called when a company does not have enough cash to fund an entire annual preferred dividend?

Accepted Answer

Passing th

Question 4

Aztec Industries has 100,000 common shares outstanding and 10,000 $2 cumulative preferred shares. If the company does not declare any dividends in Year 1 but declares a total dividend of $45,000 in Year 2, how much will be distributed to preferred and common shareholders?

Accepted Answer

The preferred shares are cumulative, whi

Question 5

Under IFRS, which of the following do companies NOT need to present as Other Comprehensive Income (OCI)?

Accepted Answer

A)  Foreign currency transactions 
B)  Foreign currency translation adjustments 
C)  Changes in the fair value of a financial instrument in a cash flow hedge 
D)  Changes in the fair value of available-for-sale financial assets 
E)  Revaluations of property, plant, and equipment 
A)  Foreign currency transactions 
B)  Foreign currency translation adjustments 
C)  Changes in the fair value of a financial instrument in a cash flow hedge 
D)  Changes in the fair value of available-for-sale financial assets 
E)  Revaluations of property, plant, and equipment

Question 6

A company can sell its shares directly to shareholders or it can use the services of an __________.

Accepted Answer

The answer of A company can sell its shares directly...

Question 7

Which of the following dates do NOT require a journal entry?

Accepted Answer

A)  Date of payment 
B)  Date of record 
C)  Date of declaration 
D)  Date of dividend 
E)  All dividend dates require a journal entry. 
A)  Date of payment 
B)  Date of record 
C)  Date of declaration 
D)  Date of dividend 
E)  All dividend dates require a journal entry.

Question 8

What types of businesses are very numerous in Canada?

Accepted Answer

Proprietor

Question 9

Which of the following would NOT be share capital?

Accepted Answer

A)  Capital earned by profitable operations 
B)  Contributed capital 
C)  Amounts received from shareholders 
D)  Common shares 
E)  Externally generated capital resulting from transactions with outsiders 
A)  Capital earned by profitable operations 
B)  Contributed capital 
C)  Amounts received from shareholders 
D)  Common shares 
E)  Externally generated capital resulting from transactions with outsiders

Question 10

There are three basic rights a shareholder may have.

Accepted Answer

A) True 
 B)False

Question 11

Which one of the following is NOT a typical characteristic of a private corporation?

Accepted Answer

A)  Small number of shareholders 
B)  Shares are not liquid 
C)  Shares are not easily traded 
D)  Shares are traded on a stock market 
E)  Shares are not easily transferred 
A)  Small number of shareholders 
B)  Shares are not liquid 
C)  Shares are not easily traded 
D)  Shares are traded on a stock market 
E)  Shares are not easily transferred

Question 12

Explain the difference between cumulative and non-cumulative preferred shares.

Accepted Answer

Cumulative preferred shareholders must r

Question 13

Tammy Corporation has 350,000 common shares outstanding. They have declared a 5% stock dividend. The current market price of the common shares is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is:

Accepted Answer

A)  $52,500. 
B)  $131,250. 
C)  $78,750. 
D)  $183,750. 
E)  $121,350. 
A)  $52,500. 
B)  $131,250. 
C)  $78,750. 
D)  $183,750. 
E)  $121,350.

Question 14

What two statements are companies required to prepare under IFRS?

Accepted Answer

Under IFRS, companies need to

Question 15

If the value of the shares can be reliably measured, for instance when the share price can be easily obtained from the stock market, then the asset exchanged should be recorded at __________.

Accepted Answer

fair value

Question 16

What is the rate of return on common shareholders' equity if sales are $100,000, net income is $22,700, and average common shareholders' equity is $86,000?

Accepted Answer

The answer of What is the rate of return on...

Question 17

According to the text, what percentage range is considered to be good returns?

Accepted Answer

Returns on equity be

Question 18

A company's shares that it reacquires are termed "treasury shares."

Accepted Answer

A) True 
 B)False

Question 19

Can a creditor make a claim against an individual shareholder for liabilities associated with a corporation? Explain.

Accepted Answer

A creditor cannot generally ma

Question 20

Retained earnings represent internally generated capital.

Accepted Answer

A) True 
 B)False

Preferred shares are considered a voting "class" of shares.

ABC Company declares a $50,000 cash dividend to its shareholders. The company has 40,000 outstanding common shares and 15,000 $3 noncumulative preferred shares. Record the journal entry.

What is it called when a company does not have enough cash to fund an entire annual preferred dividend?

Aztec Industries has 100,000 common shares outstanding and 10,000 $2 cumulative preferred shares. If the company does not declare any dividends in Year 1 but declares a total dividend of $45,000 in Year 2, how much will be distributed to preferred and common shareholders?

Under IFRS, which of the following do companies NOT need to present as Other Comprehensive Income (OCI)?

A company can sell its shares directly to shareholders or it can use the services of an __________.

Which of the following dates do NOT require a journal entry?

What types of businesses are very numerous in Canada?

Which of the following would NOT be share capital?

There are three basic rights a shareholder may have.

Which one of the following is NOT a typical characteristic of a private corporation?

Explain the difference between cumulative and non-cumulative preferred shares.

Tammy Corporation has 350,000 common shares outstanding. They have declared a 5% stock dividend. The current market price of the common shares is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is:

What two statements are companies required to prepare under IFRS?

If the value of the shares can be reliably measured, for instance when the share price can be easily obtained from the stock market, then the asset exchanged should be recorded at __________.

What is the rate of return on common shareholders' equity if sales are $100,000, net income is $22,700, and average common shareholders' equity is $86,000?

According to the text, what percentage range is considered to be good returns?

A company's shares that it reacquires are termed "treasury shares."

Can a creditor make a claim against an individual shareholder for liabilities associated with a corporation? Explain.

Retained earnings represent internally generated capital.

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

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Exam 10: Corporations: Share Capital and Retained Earnings

Preferred shares are considered a voting "class" of shares.

ABC Company declares a $50,000 cash dividend to its shareholders. The company has 40,000 outstanding common shares and 15,000 $3 noncumulative preferred shares. Record the journal entry.

What is it called when a company does not have enough cash to fund an entire annual preferred dividend?

Aztec Industries has 100,000 common shares outstanding and 10,000 $2 cumulative preferred shares. If the company does not declare any dividends in Year 1 but declares a total dividend of $45,000 in Year 2, how much will be distributed to preferred and common shareholders?

Under IFRS, which of the following do companies NOT need to present as Other Comprehensive Income (OCI)?

A company can sell its shares directly to shareholders or it can use the services of an __________.

Which of the following dates do NOT require a journal entry?

What types of businesses are very numerous in Canada?

Which of the following would NOT be share capital?

There are three basic rights a shareholder may have.

Which one of the following is NOT a typical characteristic of a private corporation?

Explain the difference between cumulative and non-cumulative preferred shares.

Tammy Corporation has 350,000 common shares outstanding. They have declared a 5% stock dividend. The current market price of the common shares is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is:

What two statements are companies required to prepare under IFRS?

If the value of the shares can be reliably measured, for instance when the share price can be easily obtained from the stock market, then the asset exchanged should be recorded at __________.

What is the rate of return on common shareholders' equity if sales are $100,000, net income is $22,700, and average common shareholders' equity is $86,000?

According to the text, what percentage range is considered to be good returns?

A company's shares that it reacquires are termed "treasury shares."

Can a creditor make a claim against an individual shareholder for liabilities associated with a corporation? Explain.

Retained earnings represent internally generated capital.

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