Question 1

Charmed,Inc.reacquired 5,000 shares of its $15-par common stock for $13/share.The debit to Treasury Stock will be:

Accepted Answer

A) $10,000. 
B) $65,000. 
C) $75,000. 
D) based on the last treasury stock transaction. 
A) $10,000. 
B) $65,000. 
C) $75,000. 
D) based on the last treasury stock transaction.

Question 2

Anderson Industries purchased 1,000 shares of the company's issued common stock,paying $10 per share.To record the purchase,the journal entry will be:

Accepted Answer

A) Debit to Common Stock $10,000,credit to Cash $10,000 
B) Debit to Treasury Stock $10,000,credit to Common Stock $10,000 
C) Debit to Treasury Stock $10,000,credit to Cash $10,000 
D) No journal entry is needed. 
A) Debit to Common Stock $10,000,credit to Cash $10,000 
B) Debit to Treasury Stock $10,000,credit to Common Stock $10,000 
C) Debit to Treasury Stock $10,000,credit to Cash $10,000 
D) No journal entry is needed.

Question 3

A corporation may declare stock dividends when there is not enough cash to pay a cash dividend.

Accepted Answer

A) True 
 B)False

Question 4

Before a 5-for-3 stock split,the shares outstanding were 45,000 shares at $15 par.After the split,what was the par value and number of shares?

Accepted Answer

A) 75,000 shares and $25/share 
B) 75,000 shares and $9/share 
C) 27,000 shares and $25/share 
D) 27,000 shares and $9/share 
A) 75,000 shares and $25/share 
B) 75,000 shares and $9/share 
C) 27,000 shares and $25/share 
D) 27,000 shares and $9/share

Question 5

If you own 500 shares (2% of a corporation's stock)and the corporation issues 15,000 new shares,how many total shares will you have after exercising your preemptive rights?

Accepted Answer

A) 500 
B) 300 
C) 800 
D) 0 
A) 500 
B) 300 
C) 800 
D) 0

Question 6

Accounting for stock at a stated value is almost identical to recording:

Accepted Answer

A) outstanding stock. 
B) no-par stock. 
C) issued stock. 
D) par stock. 
A) outstanding stock. 
B) no-par stock. 
C) issued stock. 
D) par stock.

Question 7

Taylor Fish Farm's Stockholders' Equity section includes the following information:
 
What was the total selling price of the preferred stock?

Accepted Answer

A) $13,000 
B) $15,100 
C) $16,400 
D) $19,100 
A) $13,000 
B) $15,100 
C) $16,400 
D) $19,100

Question 8

What are the annual dividends on $20 par preferred 5% stock,if 2,000 shares are authorized and 700 shares have been issued?

Accepted Answer

A) $700 
B) $200 
C) $70 
D) $20 
A) $700 
B) $200 
C) $70 
D) $20

Question 9

Five hundred shares of $25 par common stock 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) debit to Equipment for $12,500. 
B) debit to Common Stock for $12,500. 
C) credit to Paid-In Capital in Excess of Par-Common for $1,000. 
D) credit to Common Stock for $13,500. 
A) debit to Equipment for $12,500. 
B) debit to Common Stock for $12,500. 
C) credit to Paid-In Capital in Excess of Par-Common for $1,000. 
D) credit to Common Stock for $13,500.

Question 10

The return on equity for a company that has sales of $43,000,net income of $13,000,and average Stockholders' Equity of $88,000 would be 48.86%.

Accepted Answer

A) True 
 B)False

Question 11

For most companies,preemptive rights are the exception,rather than the rule.

Accepted Answer

A) True 
 B)False

Question 12

Preferred stock is considered a voting "class" of stock.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Vote 
B) Dividends 
C) Liquidation 
D) Preemption 
A) Vote 
B) Dividends 
C) Liquidation 
D) Preemption

Question 14

The return on equity for a company that has sales of $50,000,net income of $25,000 and average Stockholders' Equity of $125,000 is 20%.

Accepted Answer

A) True 
 B)False

Question 15

Taylor Fish Farm's Stockholders' Equity section includes the following information:
 
What was the total selling price of the common stock?

Accepted Answer

A) $13,000 
B) $15,100 
C) $16,400 
D) $19,100 
A) $13,000 
B) $15,100 
C) $16,400 
D) $19,100

Question 16

A stock dividend will increase total assets.

Accepted Answer

A) True 
 B)False

Question 17

What is the return on equity if sales are $100,000,net income is $22,700 and average common Stockholders' Equity is $86,000?

Accepted Answer

A) 22.7% 
B) 26.4% 
C) 86.0% 
D) Cannot be determined from information given 
A) 22.7% 
B) 26.4% 
C) 86.0% 
D) Cannot be determined from information given

Question 18

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

Question 19

On the date of payment:

Accepted Answer

A) debit Dividends and credit Retained Earnings. 
B) debit Dividends Payable and credit Cash. 
C) debit Cash and credit Dividends Payable. 
D) debit Retained Earnings and credit Dividends Payable. 
A) debit Dividends and credit Retained Earnings. 
B) debit Dividends Payable and credit Cash. 
C) debit Cash and credit Dividends Payable. 
D) debit Retained Earnings and credit Dividends Payable.

Question 20

Treasury stock is recorded at par value.

Accepted Answer

A) True 
 B)False

Charmed,Inc.reacquired 5,000 shares of its $15-par common stock for $13/share.The debit to Treasury Stock will be:

Anderson Industries purchased 1,000 shares of the company's issued common stock,paying $10 per share.To record the purchase,the journal entry will be:

A corporation may declare stock dividends when there is not enough cash to pay a cash dividend.

Before a 5-for-3 stock split,the shares outstanding were 45,000 shares at $15 par.After the split,what was the par value and number of shares?

If you own 500 shares (2% of a corporation's stock)and the corporation issues 15,000 new shares,how many total shares will you have after exercising your preemptive rights?

Accounting for stock at a stated value is almost identical to recording:

Taylor Fish Farm's Stockholders' Equity section includes the following information: What was the total selling price of the preferred stock?

What are the annual dividends on $20 par preferred 5% stock,if 2,000 shares are authorized and 700 shares have been issued?

Five hundred shares of $25 par common stock 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 return on equity for a company that has sales of $43,000,net income of $13,000,and average Stockholders' Equity of $88,000 would be 48.86%.

For most companies,preemptive rights are the exception,rather than the rule.

Preferred stock is considered a voting "class" of stock.

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

The return on equity for a company that has sales of $50,000,net income of $25,000 and average Stockholders' Equity of $125,000 is 20%.

Taylor Fish Farm's Stockholders' Equity section includes the following information: What was the total selling price of the common stock?

A stock dividend will increase total assets.

What is the return on equity if sales are $100,000,net income is $22,700 and average common Stockholders' Equity is $86,000?

The declaration of a stock dividend:

On the date of payment:

Treasury stock is recorded at par value.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

The Statement of Cash Flows

Financial Statement Analysis

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Exam 10: Corporations: Paid-In Capital and Retained Earnings

Charmed,Inc.reacquired 5,000 shares of its $15-par common stock for $13/share.The debit to Treasury Stock will be:

Anderson Industries purchased 1,000 shares of the company's issued common stock,paying $10 per share.To record the purchase,the journal entry will be:

A corporation may declare stock dividends when there is not enough cash to pay a cash dividend.

Before a 5-for-3 stock split,the shares outstanding were 45,000 shares at $15 par.After the split,what was the par value and number of shares?

If you own 500 shares (2% of a corporation's stock)and the corporation issues 15,000 new shares,how many total shares will you have after exercising your preemptive rights?

Accounting for stock at a stated value is almost identical to recording:

Taylor Fish Farm's Stockholders' Equity section includes the following information: What was the total selling price of the preferred stock?

What are the annual dividends on $20 par preferred 5% stock,if 2,000 shares are authorized and 700 shares have been issued?

Five hundred shares of $25 par common stock 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 return on equity for a company that has sales of $43,000,net income of $13,000,and average Stockholders' Equity of $88,000 would be 48.86%.

For most companies,preemptive rights are the exception,rather than the rule.

Preferred stock is considered a voting "class" of stock.

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

The return on equity for a company that has sales of $50,000,net income of $25,000 and average Stockholders' Equity of $125,000 is 20%.

Taylor Fish Farm's Stockholders' Equity section includes the following information: What was the total selling price of the common stock?

A stock dividend will increase total assets.

What is the return on equity if sales are $100,000,net income is $22,700 and average common Stockholders' Equity is $86,000?

The declaration of a stock dividend:

On the date of payment:

Treasury stock is recorded at par value.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

The Statement of Cash Flows

Financial Statement Analysis

Filters