Exam 10: Stockholders Equity

Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding?

Match the terms to the definitions. a.authorized shares i.stock option b.issued shares j.stock warrant c.outstanding shares k.treasury stock d.par value l.call provision e.stated capital (legal capital) m.earnings per share f.preemptive right n.dividend yield ratio g.retained earnings o.dividend payout ratio h.stock split -A form of compensation whereby employees are granted rights to purchase shares of stock in the future.

Which of the following types of information is not set forth within the corporate charter?

The stockholders' equity section of the balance sheet immediately before a recent stock dividend is provided below: A 10% stock dividend was declared and paid when the market price per share was $12. Immediately after the stock dividend, the components of stockholders' equity section were: Common Stock Paid-in Capital Retained Earnings

Which of the following preferred stock features authorizes the corporation to redeem shares at a fixed price on or after a specified date?

Selected data from the company's financial statements are presented below: -Refer to Labor Finders, Inc. The company's 2015 dividend payout ratio is reported as

Match the following terms to their correct definition. a.Articles of incorporation i.Equity b.Common stock j.Exercise (strike)price c.Contributed capital k.Liquidating dividend d.Corporate charter l.No-par stock e.Current dividend preference m.Payment date f.Date of record n.Preferred stock g.Declaration date o.Prior period adjustment h.Dividends in arrears p.Return on common equity -If a corporation has only one class of stock, this is usually it.

If a corporation declares a 2-for-1 stock split, which of the following is true?

Selected data from the company's financial statements are presented below: -Refer to Labor Finders, Inc. The company's 2015 dividend yield is reported as

Which of the following items is included as part of comprehensive income but not as part of net income?

In July of 2015, the accountant discovered an error affecting the 2014 computation of amortization expense related to the company's patent. As a result of this error, 2014 amortization expense was understated by $21,000 and 2014 net income after taxes (which are paid at a rate of 30%)was overstated by $14,700.

An arbitrary monetary amount that has a stated value on each share of stock and establishes a minimum price for the stock when issued is the ____________________.

The balance in the retained earnings account represents

The stockholders' equity accounts at December 31, 2015 are provided below: The market price of the stock was $8 per share at December 31, 2015.

The residual claim entitles a common stockholder to a proportionate share of a liquidating payout before preferred stockholders are paid.

Treasury stock is reported as a reduction of stockholders' equity.

-Refer to Landmark Company. What is the number of shares of common stock issued and outstanding?

Par value is adjusted annually to reflect the current market value of the stock.

The stockholders' equity section of the balance sheet shows all changes in stockholders' equity for the period.

When computing the dividend yield, net income is divided by the common stock price.