Question 1

Treasury shares is a "contra-equity" account and carries a debit balance.

Accepted Answer

A) True 
 B)False

Question 2

A distribution of a corporation's own shares to its shareholders is a called a __________.

Accepted Answer

The answer of A distribution of a corporation's own shares...

Question 3

Contributed Capital includes Share Capital and Retained Earnings.

Accepted Answer

A) True 
 B)False

Question 4

All Canadian shares are no-par value.

Accepted Answer

A) True 
 B)False

Question 5

Describe the two sources of shareholders' equity.

Accepted Answer

The two sources of shareholders equity a

Question 6

The declaration of a stock dividend:

Accepted Answer

A)  creates a liability. 
B)  creates an asset. 
C)  creates a revenue. 
D)  does not create a liability. 
E)  creates an expense. 
A)  creates a liability. 
B)  creates an asset. 
C)  creates a revenue. 
D)  does not create a liability. 
E)  creates an expense.

Question 7

A type of share that pays dividends in arrears is called a __________,

Accepted Answer

cumulative

Question 8

ABC Co. issues 500 common shares for $10 per share. Identify the entry that would be recorded.

Accepted Answer

Debit Cash for $5,00

Question 9

What are two disadvantages of the corporate form of business?

Accepted Answer

Government

Question 10

ABC Company declares a 2-for-1 stock split of its common shares. The company has 100,000 common shares authorized and 40,000 common shares issued and outstanding. How many shares are authorized and outstanding after the split?

Accepted Answer

The number of shares authorize

Question 11

Compute the rate of return on shareholders' equity and the rate of return on common shareholders' equity given the following information:
   
Return on Shareholders' Equity: __________% (to nearest one-tenth %)
Return on Common Shareholders' Equity: __________% (to nearest one-tenth %)

Accepted Answer

Return on Shareholders' Equity: 6.91%
Re

Question 12

What are the three dates associated with a stock dividend?

Accepted Answer

Declaration date, da

Question 13

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

Accepted Answer

The answer of The price that the corporation receives from...

Question 14

The liability "dividend payable" is recognized on the date of __________.

Accepted Answer

The answer of The liability "dividend payable" is recognized on...

Question 15

What is the minimum number of voting class shares that a company must have?

Accepted Answer

The answer of What is the minimum number of voting...

Question 16

Which of the following is NOT an advantage of a corporation?

Accepted Answer

A)  Double taxation 
B)  Ease of raising capital 
C)  Ease of transfer ownership 
D)  Continuous life 
E)  Limited liability 
A)  Double taxation 
B)  Ease of raising capital 
C)  Ease of transfer ownership 
D)  Continuous life 
E)  Limited liability

Question 17

Which right do preferred stockholders receive before common stockholders?

Accepted Answer

The answer of Which right do preferred stockholders receive before...

Question 18

On January 1, 2012, Aquarius Corporation had 25,000 common shares issued at $1 per share. Given the following transactions that occurred during the year, prepare the appropriate journal entries.
Apr. 1 Issued 10,000 common shares for $100,000.
June 1 Declared a cash dividend of $2 per share to shareholders.
June 30 Paid the $2 cash dividend.
Dec. 15 Declared a 10% stock dividend to shareholders of record on December 31.
At December 15, the shares were trading at $10.

Accepted Answer

@#IMG-DLM& *Alternatively, it would be a

Question 19

What is the normal balance of the treasury shares account?

Accepted Answer

The answer of What is the normal balance of the...

Question 20

What are the two types of preferred shares?

Accepted Answer

Cumulative

Treasury shares is a "contra-equity" account and carries a debit balance.

A distribution of a corporation's own shares to its shareholders is a called a __________.

Contributed Capital includes Share Capital and Retained Earnings.

All Canadian shares are no-par value.

Describe the two sources of shareholders' equity.

The declaration of a stock dividend:

A type of share that pays dividends in arrears is called a __________,

ABC Co. issues 500 common shares for $10 per share. Identify the entry that would be recorded.

What are two disadvantages of the corporate form of business?

ABC Company declares a 2-for-1 stock split of its common shares. The company has 100,000 common shares authorized and 40,000 common shares issued and outstanding. How many shares are authorized and outstanding after the split?

Compute the rate of return on shareholders' equity and the rate of return on common shareholders' equity given the following information: Return on Shareholders' Equity: % (to nearest one-tenth %) Return on Common Shareholders' Equity: % (to nearest one-tenth %)

What are the three dates associated with a stock dividend?

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

The liability "dividend payable" is recognized on the date of __________.

What is the minimum number of voting class shares that a company must have?

Which of the following is NOT an advantage of a corporation?

Which right do preferred stockholders receive before common stockholders?

What is the normal balance of the treasury shares account?

What are the two types of preferred shares?

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

Treasury shares is a "contra-equity" account and carries a debit balance.

A distribution of a corporation's own shares to its shareholders is a called a __________.

Contributed Capital includes Share Capital and Retained Earnings.

All Canadian shares are no-par value.

Describe the two sources of shareholders' equity.

The declaration of a stock dividend:

A type of share that pays dividends in arrears is called a __________,

ABC Co. issues 500 common shares for $10 per share. Identify the entry that would be recorded.

What are two disadvantages of the corporate form of business?

ABC Company declares a 2-for-1 stock split of its common shares. The company has 100,000 common shares authorized and 40,000 common shares issued and outstanding. How many shares are authorized and outstanding after the split?

Compute the rate of return on shareholders' equity and the rate of return on common shareholders' equity given the following information: Return on Shareholders' Equity: __________% (to nearest one-tenth %) Return on Common Shareholders' Equity: __________% (to nearest one-tenth %)

What are the three dates associated with a stock dividend?

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

The liability "dividend payable" is recognized on the date of __________.

What is the minimum number of voting class shares that a company must have?

Which of the following is NOT an advantage of a corporation?

Which right do preferred stockholders receive before common stockholders?

What is the normal balance of the treasury shares account?

What are the two types of preferred shares?

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

Compute the rate of return on shareholders' equity and the rate of return on common shareholders' equity given the following information: Return on Shareholders' Equity: % (to nearest one-tenth %) Return on Common Shareholders' Equity: % (to nearest one-tenth %)