Question 1

Changes in accounting estimates are accounted for in current and future periods.

Accepted Answer

A) True 
 B)False

Question 2

Corporations issue preferred stock to raise capital without sacrificing control of the corporation and/or to boost the return earned by common shareholders.

Accepted Answer

A) True 
 B)False

Question 3

The price-earnings ratio reveals information about the stock market's expectations for a company's future growth in earnings.

Accepted Answer

A) True 
 B)False

Question 4

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

Accepted Answer

A) $31.71. 
B) $32.50. 
C) $32.75. 
D) $33.17. 
E) $60.00 
A) $31.71. 
B) $32.50. 
C) $32.75. 
D) $33.17. 
E) $60.00

Question 5

What is a stock split?
 How is a stock split different from a stock dividend?

Accepted Answer

A stock split is the distribution of add

Question 6

Prior to June 1,a company has never had any treasury stock transactions.A company repurchased 100 shares of its common stock on June 1 for $5,000.On July 1,it reissued 50 of these shares at $52 per share.On August 1,it reissued the remaining treasury shares at $49 per share.What is the balance in the Paid-in Capital,Treasury Stock account on August 2?

Accepted Answer

A) $5,050. 
B) $2,600. 
C) $100. 
D) $50. 
E) $0. 
A) $5,050. 
B) $2,600. 
C) $100. 
D) $50. 
E) $0.

Question 7

A corporation had 50,000 shares of $20 par value common stock outstanding on July 1.Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record this dividend is:

Accepted Answer

A) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $135,000. 
B) Debit Retained Earnings $135,000; credit Cash $135,000. 
C) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $100,000; credit Paid-In Capital in Excess of Par Value, Common Stock $35,000. 
D) Debit Retained Earnings $100,000; credit Common Stock Dividend Distributable $100,000. 
E) No entry is made until the stock is issued. 
A) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $135,000. 
B) Debit Retained Earnings $135,000; credit Cash $135,000. 
C) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $100,000; credit Paid-In Capital in Excess of Par Value, Common Stock $35,000. 
D) Debit Retained Earnings $100,000; credit Common Stock Dividend Distributable $100,000. 
E) No entry is made until the stock is issued.

Question 8

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

Accepted Answer

A) Convertible preferred stock. 
B) Callable preferred stock. 
C) Premium stock. 
D) Cumulative preferred stock. 
E) Participating preferred stock. 
A) Convertible preferred stock. 
B) Callable preferred stock. 
C) Premium stock. 
D) Cumulative preferred stock. 
E) Participating preferred stock.

Question 9

The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:

Accepted Answer

A) Dividend payout ratio. 
B) Dividend yield. 
C) Price-earnings ratio. 
D) Current yield. 
E) Earnings per share. 
A) Dividend payout ratio. 
B) Dividend yield. 
C) Price-earnings ratio. 
D) Current yield. 
E) Earnings per share.

Question 10

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:

Accepted Answer

A) $ 100. 
B) $ 600. 
C) $1,000. 
D) $6,000. 
E) $7,000. 
A) $ 100. 
B) $ 600. 
C) $1,000. 
D) $6,000. 
E) $7,000.

Changes in accounting estimates are accounted for in current and future periods.

Corporations issue preferred stock to raise capital without sacrificing control of the corporation and/or to boost the return earned by common shareholders.

The price-earnings ratio reveals information about the stock market's expectations for a company's future growth in earnings.

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

What is a stock split? How is a stock split different from a stock dividend?

A corporation had 50,000 shares of $20 par value common stock outstanding on July 1.Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record this dividend is:

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

Exam 13: Accounting for Corporations

Changes in accounting estimates are accounted for in current and future periods.

Corporations issue preferred stock to raise capital without sacrificing control of the corporation and/or to boost the return earned by common shareholders.

The price-earnings ratio reveals information about the stock market's expectations for a company's future growth in earnings.

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

What is a stock split? How is a stock split different from a stock dividend?

A corporation had 50,000 shares of $20 par value common stock outstanding on July 1.Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record this dividend is:

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters