Question 1

At the date of the financial statements,common shares issued would exceed common shares outstanding as a result of the:

Accepted Answer

A)  Payment in full of subscribed shares. 
B)  Declaration of a stock split. 
C)  Declaration of a stock dividend. 
D)  Purchase of treasury stock. 
A)  Payment in full of subscribed shares. 
B)  Declaration of a stock split. 
C)  Declaration of a stock dividend. 
D)  Purchase of treasury stock.

Question 2

In accounting for dividends,the declaration date is the most important date because dividends are paid to whomever owns the shares on that date.

Accepted Answer

A) True 
 B)False

Question 3

On December 31,2014,when JR Corporation's shares were selling at $44 per share,its shareholders' equity accounts were as follows: Common shares (no par value)100,000   A 100 percent stock dividend was declared and issued.The effect of this dividend was:

Accepted Answer

A)  Total shareholders' equity did not change. 
B)  Common shares increased to $5,600,000. 
C)  Common shares increased to $6,460,000. 
D)  Total shareholders' equity decreased. 
A)  Total shareholders' equity did not change. 
B)  Common shares increased to $5,600,000. 
C)  Common shares increased to $6,460,000. 
D)  Total shareholders' equity decreased.

Question 4

On October 1,2019,XBC declared a dividend to its common shareholders by issuing one share of YTC,preferred share,$.60 no-par (held as a long-term investment)for each of the 15,000 common shares of XBC.On the declaration date,the YTC shares were selling at $7 per share.The YTC shares originally were purchased by XBC at $9 per share; they were transferred to the XBC shareholders on January 30,2000,when their quoted market price was $7.50 per share.Give the following entries for XBC:
(a)At date of declaration:
(b)At date of payment:

Accepted Answer

(a)At date of declar

Question 5

Par value is typically set at a low amount so that the corporation can pay a minimum amount in dividends to the preferred shareholders.

Accepted Answer

A) True 
 B)False

Question 6

ABC Inc.engages in a non-cash exchange with a third party whereby ABC Inc.issues common shares to the third party in exchange for some highly specialized Machinery & Equipment.The value of the shares issued was $15,000 while the appraised value of the Machinery & Equipment was $12,000.At what amount would this transaction be valued on ABC's books?

Accepted Answer

A)  $12,000 under IFRS and $15,000 under ASPE. 
B)  $15,000 under IFRS and $12,000 under ASPE. 
C)  $12,000 under either ASPE or IFRS. 
D)  $15,000 under either ASPE or IFRS. 
A)  $12,000 under IFRS and $15,000 under ASPE. 
B)  $15,000 under IFRS and $12,000 under ASPE. 
C)  $12,000 under either ASPE or IFRS. 
D)  $15,000 under either ASPE or IFRS.

Question 7

Stock splits are often issued primarily to:

Accepted Answer

A)  Reduce the market price per share. 
B)  Increase permanent capital. 
C)  Decrease the liability for dividends in arrears. 
D)  Give the shareholders more voting rights. 
A)  Reduce the market price per share. 
B)  Increase permanent capital. 
C)  Decrease the liability for dividends in arrears. 
D)  Give the shareholders more voting rights.

Question 8

Dividends in arrears on cumulative preferred shares must be paid at the end of the accounting period if cash and retained earnings are available.

Accepted Answer

A) True 
 B)False

Question 9

A property dividend causes a debit to retained earnings equal to the ___________ of the property distributed.

Accepted Answer

A)  Book value 
B)  Fair market value 
C)  Original cost 
D)  Income tax basis 
A)  Book value 
B)  Fair market value 
C)  Original cost 
D)  Income tax basis

Question 10

Total retained earnings include both appropriated and unappropriated retained earnings.

Accepted Answer

A) True 
 B)False

Question 11

The following data is available for XAC:   Find the number of shares subscribed and the subscription price per share?

Accepted Answer

A)  Choice 1 
B)  Choice 2 
C)  Choice 3 
D)  Choice 4 
A)  Choice 1 
B)  Choice 2 
C)  Choice 3 
D)  Choice 4

Question 12

ABC made the following entry to record the issuance of a dividend:   ABC must have declared a:

Accepted Answer

A)  stock split. 
B)  Property dividend. 
C)  Large stock dividend. 
D)  Small stock dividend. 
A)  stock split. 
B)  Property dividend. 
C)  Large stock dividend. 
D)  Small stock dividend.

Question 13

The shareholders of a corporation usually cannot be held legally liable for the debts of the corporation except to the extent that legal capital is impaired.

Accepted Answer

A) True 
 B)False

Question 14

When retained earnings are restricted,they must also be appropriated.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements concerning stock dividends is correct?

Accepted Answer

A)  The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued. 
B)  The issuance of a stock dividend increases total stockholders' equity. 
C)  Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors; therefore, a stock dividend declared, but not yet issued is a liability. 
D)  A stock dividend cannot use treasury stock. 
A)  The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued. 
B)  The issuance of a stock dividend increases total stockholders' equity. 
C)  Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors; therefore, a stock dividend declared, but not yet issued is a liability. 
D)  A stock dividend cannot use treasury stock.

Question 16

Cash dividends usually are declared on one date and paid on a subsequent date to shareholders of record on some intermediate date.On which of the following dates should an accrual basis shareholder recognize investment revenue?

Accepted Answer

A)  Record date 
B)  Declaration date 
C)  Payment date 
D)  Either record date or declaration date 
A)  Record date 
B)  Declaration date 
C)  Payment date 
D)  Either record date or declaration date

Question 17

Major factors contributing to the growth of the corporate form of business includes all of the following except:

Accepted Answer

A)  The facility to accumulate large amounts of resources. 
B)  Limited liability of the shareholders. 
C)  Easy transferability of ownership. 
D)  The lack of government regulation. 
A)  The facility to accumulate large amounts of resources. 
B)  Limited liability of the shareholders. 
C)  Easy transferability of ownership. 
D)  The lack of government regulation.

Question 18

RST had the following shareholders and the shares owned by each on November 15:   On that date,RST declared a 1 for 2 common stock dividend.The stock was selling for $10 per share.RST issued fractional share rights when necessary.RST had to issue which of the following number of fractional share rights:

Accepted Answer

A)  More than three. 
B)  Three. 
C)  Two. 
D)  One. 
A)  More than three. 
B)  Three. 
C)  Two. 
D)  One.

Question 19

Issued share capital refers to the number of shares:

Accepted Answer

A)  Outstanding. 
B)  Outstanding less all shares held as treasury shares. 
C)  Outstanding plus all shares held as treasury shares. 
D)  That may be issued according to the corporate charter. 
A)  Outstanding. 
B)  Outstanding less all shares held as treasury shares. 
C)  Outstanding plus all shares held as treasury shares. 
D)  That may be issued according to the corporate charter.

Question 20

Which of the following represents the interest period for a scrip dividend?

Accepted Answer

A)  Record date to payment date 
B)  Declaration date to payment date 
C)  Record date to ex-dividend date 
D)  Declaration date to ex-dividend date 
A)  Record date to payment date 
B)  Declaration date to payment date 
C)  Record date to ex-dividend date 
D)  Declaration date to ex-dividend date

At the date of the financial statements,common shares issued would exceed common shares outstanding as a result of the:

In accounting for dividends,the declaration date is the most important date because dividends are paid to whomever owns the shares on that date.

On December 31,2014,when JR Corporation's shares were selling at $44 per share,its shareholders' equity accounts were as follows: Common shares (no par value)100,000 A 100 percent stock dividend was declared and issued.The effect of this dividend was:

Par value is typically set at a low amount so that the corporation can pay a minimum amount in dividends to the preferred shareholders.

Stock splits are often issued primarily to:

Dividends in arrears on cumulative preferred shares must be paid at the end of the accounting period if cash and retained earnings are available.

A property dividend causes a debit to retained earnings equal to the ___________ of the property distributed.

Total retained earnings include both appropriated and unappropriated retained earnings.

The following data is available for XAC: Find the number of shares subscribed and the subscription price per share?

ABC made the following entry to record the issuance of a dividend: ABC must have declared a:

The shareholders of a corporation usually cannot be held legally liable for the debts of the corporation except to the extent that legal capital is impaired.

When retained earnings are restricted,they must also be appropriated.

Which of the following statements concerning stock dividends is correct?

Cash dividends usually are declared on one date and paid on a subsequent date to shareholders of record on some intermediate date.On which of the following dates should an accrual basis shareholder recognize investment revenue?

Major factors contributing to the growth of the corporate form of business includes all of the following except:

Issued share capital refers to the number of shares:

Which of the following represents the interest period for a scrip dividend?

The Framework for Financial Reporting

Accounting Judgements

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

Exam 3: Statements of Income and Comprehensive Income

At the date of the financial statements,common shares issued would exceed common shares outstanding as a result of the:

In accounting for dividends,the declaration date is the most important date because dividends are paid to whomever owns the shares on that date.

On December 31,2014,when JR Corporation's shares were selling at $44 per share,its shareholders' equity accounts were as follows: Common shares (no par value)100,000 A 100 percent stock dividend was declared and issued.The effect of this dividend was:

Par value is typically set at a low amount so that the corporation can pay a minimum amount in dividends to the preferred shareholders.

Stock splits are often issued primarily to:

Dividends in arrears on cumulative preferred shares must be paid at the end of the accounting period if cash and retained earnings are available.

A property dividend causes a debit to retained earnings equal to the ___________ of the property distributed.

Total retained earnings include both appropriated and unappropriated retained earnings.

The following data is available for XAC: Find the number of shares subscribed and the subscription price per share?

ABC made the following entry to record the issuance of a dividend: ABC must have declared a:

The shareholders of a corporation usually cannot be held legally liable for the debts of the corporation except to the extent that legal capital is impaired.

When retained earnings are restricted,they must also be appropriated.

Which of the following statements concerning stock dividends is correct?

Cash dividends usually are declared on one date and paid on a subsequent date to shareholders of record on some intermediate date.On which of the following dates should an accrual basis shareholder recognize investment revenue?

Major factors contributing to the growth of the corporate form of business includes all of the following except:

Issued share capital refers to the number of shares:

Which of the following represents the interest period for a scrip dividend?

The Framework for Financial Reporting

Accounting Judgements

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters