Question 1

A corporation may issue shares for other than cash, requiring the recording of the assets at current market value.

Accepted Answer

A) True 
 B)False

Question 2

A stock split is recorded as a(n):

Accepted Answer

A)  regular journal entry. 
B)  memorandum entry. 
C)  adjusting entry. 
D)  closing entry. 
E)  correcting entry. 
A)  regular journal entry. 
B)  memorandum entry. 
C)  adjusting entry. 
D)  closing entry. 
E)  correcting entry.

Question 3

Return on common equity shows the relationship between __________ and __________.

Accepted Answer

net income available

Question 4

The date of declaration creates ________ for the corporation.

Accepted Answer

A)  an asset 
B)  a liability 
C)  an expense 
D)  a revenue 
E)  no obligation 
A)  an asset 
B)  a liability 
C)  an expense 
D)  a revenue 
E)  no obligation

Question 5

Limited liability means that the shareholders of a corporation share a personal liability for all debts of the corporation.

Accepted Answer

A) True 
 B)False

Question 6

A corporation is a separate legal entity from its owners.

Accepted Answer

A) True 
 B)False

Question 7

Earned Capital includes Retained Earnings and Accumulated Other Comprehensive Income.

Accepted Answer

A) True 
 B)False

Question 8

Five hundred common shares trading at $25/share were exchanged for a piece of equipment with a current market value of $13,500. The journal entry to record the transaction would include a:

Accepted Answer

A)  credit to Equipment for $12,500. 
B)  debit to Common Shares for $12,500. 
C)  credit to Common Shares for $12,500. 
D)  credit to Common Shares for $13,500. 
E)  debit to Equipment for $13,500. 
A)  credit to Equipment for $12,500. 
B)  debit to Common Shares for $12,500. 
C)  credit to Common Shares for $12,500. 
D)  credit to Common Shares for $13,500. 
E)  debit to Equipment for $13,500.

Question 9

The portion of shareholders' equity that can be used for dividends is referred to as legal capital.

Accepted Answer

A) True 
 B)False

Question 10

Identify and explain the three dates associated with the declaration and payment of a cash dividend.

Accepted Answer

1) The declaration date is the date that

Question 11

If a corporation has both common and preferred shares, the preferred shareholders will receive their dividends first, if the money is available.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a date associated with dividends?

Accepted Answer

A)  Date of issuance 
B)  Date of declaration 
C)  Date of payment 
D)  Date of record 
E)  Date of purchase 
A)  Date of issuance 
B)  Date of declaration 
C)  Date of payment 
D)  Date of record 
E)  Date of purchase

Question 13

Treasury shares are recorded at __________.

Accepted Answer

The answer of Treasury shares are recorded at __________....

Question 14

What is the purpose of the Statement of Changes in Equity?

Accepted Answer

This statement is used to show

Question 15

When you invest in a corporation, you may call yourself a __________.

Accepted Answer

shareholde

Question 16

Shareholders' equity consists of contributed capital and paid-in capital.

Accepted Answer

A) True 
 B)False

Question 17

Paying dividends causes a decrease in total assets, but an increase in total shareholders' equity.

Accepted Answer

A) True 
 B)False

Question 18

Maintaining their proportionate share in the ownership of a corporation when new shares are available to be purchased is an example of which shareholder right?

Accepted Answer

The answer of Maintaining their proportionate share in the ownership...

Question 19

Under the Canada Business Corporations Act (CBCA), explain why shares must be no par value.

Accepted Answer

As the marketplace would set a

Question 20

The price that the corporation receives from issuing shares is called the underwriter price.

Accepted Answer

A) True 
 B)False

A corporation may issue shares for other than cash, requiring the recording of the assets at current market value.

A stock split is recorded as a(n):

Return on common equity shows the relationship between and .

The date of declaration creates ________ for the corporation.

Limited liability means that the shareholders of a corporation share a personal liability for all debts of the corporation.

A corporation is a separate legal entity from its owners.

Earned Capital includes Retained Earnings and Accumulated Other Comprehensive Income.

Five hundred common shares trading at $25/share were exchanged for a piece of equipment with a current market value of $13,500. The journal entry to record the transaction would include a:

The portion of shareholders' equity that can be used for dividends is referred to as legal capital.

Identify and explain the three dates associated with the declaration and payment of a cash dividend.

If a corporation has both common and preferred shares, the preferred shareholders will receive their dividends first, if the money is available.

Which of the following is NOT a date associated with dividends?

Treasury shares are recorded at __________.

What is the purpose of the Statement of Changes in Equity?

When you invest in a corporation, you may call yourself a __________.

Shareholders' equity consists of contributed capital and paid-in capital.

Paying dividends causes a decrease in total assets, but an increase in total shareholders' equity.

Maintaining their proportionate share in the ownership of a corporation when new shares are available to be purchased is an example of which shareholder right?

Under the Canada Business Corporations Act (CBCA), explain why shares must be no par value.

The price that the corporation receives from issuing shares is called the underwriter price.

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

A corporation may issue shares for other than cash, requiring the recording of the assets at current market value.

A stock split is recorded as a(n):

Return on common equity shows the relationship between __________ and __________.

The date of declaration creates ________ for the corporation.

Limited liability means that the shareholders of a corporation share a personal liability for all debts of the corporation.

A corporation is a separate legal entity from its owners.

Earned Capital includes Retained Earnings and Accumulated Other Comprehensive Income.

Five hundred common shares trading at $25/share were exchanged for a piece of equipment with a current market value of $13,500. The journal entry to record the transaction would include a:

The portion of shareholders' equity that can be used for dividends is referred to as legal capital.

Identify and explain the three dates associated with the declaration and payment of a cash dividend.

If a corporation has both common and preferred shares, the preferred shareholders will receive their dividends first, if the money is available.

Which of the following is NOT a date associated with dividends?

Treasury shares are recorded at __________.

What is the purpose of the Statement of Changes in Equity?

When you invest in a corporation, you may call yourself a __________.

Shareholders' equity consists of contributed capital and paid-in capital.

Paying dividends causes a decrease in total assets, but an increase in total shareholders' equity.

Maintaining their proportionate share in the ownership of a corporation when new shares are available to be purchased is an example of which shareholder right?

Under the Canada Business Corporations Act (CBCA), explain why shares must be no par value.

The price that the corporation receives from issuing shares is called the underwriter price.

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

Return on common equity shows the relationship between and .