Question 1

A transfer agent keeps stockholder records and prepares official lists of stockholders and dividend payments.

Accepted Answer

A) True 
 B)False

Question 2

A corporation has $1,750,000 in stockholders' equity and 350,000 weighted-average shares of common stock outstanding.Calculate the book value per common share.

Accepted Answer

$1,750,000

Question 3

_______________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

Accepted Answer

Book value

Question 4

The following data has been collected about a company's stockholders' equity accounts:
  The treasury shares were all purchased at the same price.
The cost per share of the treasury stock is:

Accepted Answer

A) $1.15. 
B) $1.28. 
C) $11.50. 
D) $10.50. 
E) $10.00. 
A) $1.15. 
B) $1.28. 
C) $11.50. 
D) $10.50. 
E) $10.00.

Question 5

Common stock always carries a preference for receiving dividends over preferred stock.

Accepted Answer

A) True 
 B)False

Question 6

A stock _________________ keeps stockholder records and prepares official lists of stockholders for stockholder meetings and dividend payments.

Accepted Answer

The answer of A stock _________________ keeps stockholder records and...

Question 7

A company paid $0.48 in cash dividends per share.Its earnings per share is $4.20 and its market price per share is $30.00.Its dividend yield equals:

Accepted Answer

A) 1.60%. 
B) 6.25%. 
C) 8.75%. 
D) 11.43%. 
E) 14.00%. 
A) 1.60%. 
B) 6.25%. 
C) 8.75%. 
D) 11.43%. 
E) 14.00%.

Question 8

A stock dividend:

Accepted Answer

A) Is not a liability on the balance sheet. 
B) Does not reduce a corporation's assets and stockholders' equity. 
C) Transfers a portion of equity from retained earnings to contributed capital. 
D) Does not affect total equity, but does affect the components of equity. 
E) All of the options are correct. 
A) Is not a liability on the balance sheet. 
B) Does not reduce a corporation's assets and stockholders' equity. 
C) Transfers a portion of equity from retained earnings to contributed capital. 
D) Does not affect total equity, but does affect the components of equity. 
E) All of the options are correct.

Question 9

A corporation reports the following year-end stockholders' equity:
   Determine the following:
(1)Par value for the preferred stock.
(2)Book value per share for both preferred stock and common stock assuming a call price per share of $52 for preferred and no dividends in arrears.

Accepted Answer

(1)Preferred stock p

Question 10

Participating preferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.

Accepted Answer

A) True 
 B)False

Question 11

A corporation has 200,000 shares of $10 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year:
   Prepare the journal entries to record these transactions.

Accepted Answer

The answer of A corporation has 200,000 shares of $10...

Question 12

Retained earnings are not part of the stockholders' claims on the company's net assets.

Accepted Answer

A) True 
 B)False

Question 13

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year:
   Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 14

Minimum legal capital requirements are intended to protect creditors by requiring a minimum level of legal minimum.

Accepted Answer

A) True 
 B)False

Question 15

The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is:

Accepted Answer

A) Always equal to its par value. 
B) Always equal to its stated value. 
C) Referred to as paid-in capital. 
D) Referred to as retained earnings. 
E) Always below its stated value. 
A) Always equal to its par value. 
B) Always equal to its stated value. 
C) Referred to as paid-in capital. 
D) Referred to as retained earnings. 
E) Always below its stated value.

Question 16

A company's stock is selling for $67.20 per share and its earnings per share is $3.50 for the current year.Calculate the price-earnings ratio.

Accepted Answer

Price-Earnings Ratio = Market

Question 17

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

Accepted Answer

A) True 
 B)False

Question 18

Rights to purchase common stock at a fixed price over a specified period are:

Accepted Answer

A) Preferred stocks. 
B) Class B stocks. 
C) Stock options. 
D) Stock restrictions. 
E) Preemptive rights. 
A) Preferred stocks. 
B) Class B stocks. 
C) Stock options. 
D) Stock restrictions. 
E) Preemptive rights.

Question 19

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

Accepted Answer

Dividend yield is the ratio of annual ca

Question 20

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

Accepted Answer

The answer of _____________________ is a general term that refers...

Exam 13: Accounting for Corporations

A transfer agent keeps stockholder records and prepares official lists of stockholders and dividend payments.

A corporation has $1,750,000 in stockholders' equity and 350,000 weighted-average shares of common stock outstanding.Calculate the book value per common share.

_______________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

The following data has been collected about a company's stockholders' equity accounts: The treasury shares were all purchased at the same price. The cost per share of the treasury stock is:

Common stock always carries a preference for receiving dividends over preferred stock.

A stock _________________ keeps stockholder records and prepares official lists of stockholders for stockholder meetings and dividend payments.

A company paid $0.48 in cash dividends per share.Its earnings per share is $4.20 and its market price per share is $30.00.Its dividend yield equals:

A stock dividend:

A corporation reports the following year-end stockholders' equity: Determine the following: (1)Par value for the preferred stock. (2)Book value per share for both preferred stock and common stock assuming a call price per share of $52 for preferred and no dividends in arrears.

Participating preferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.

A corporation has 200,000 shares of $10 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year: Prepare the journal entries to record these transactions.

Retained earnings are not part of the stockholders' claims on the company's net assets.

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year: Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

Minimum legal capital requirements are intended to protect creditors by requiring a minimum level of legal minimum.

The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is:

A company's stock is selling for $67.20 per share and its earnings per share is $3.50 for the current year.Calculate the price-earnings ratio.

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

Rights to purchase common stock at a fixed price over a specified period are:

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

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

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