Question 1

Stockholders' equity:

Accepted Answer

A) is usually equal to cash on hand. 
B) includes paid-in capital and total liabilities. 
C) includes retained earnings and paid-in capital. 
D) is shown on the income statement. 
A) is usually equal to cash on hand. 
B) includes paid-in capital and total liabilities. 
C) includes retained earnings and paid-in capital. 
D) is shown on the income statement.

Question 2

If a corporation issues only one class of stock,it is called:

Accepted Answer

A) common stock. 
B) treasury stock. 
C) no-par stock. 
D) preferred stock. 
A) common stock. 
B) treasury stock. 
C) no-par stock. 
D) preferred stock.

Question 3

On which of the following dates,a company incurs liability for a dividend?

Accepted Answer

A) The date of record 
B) The date of payment 
C) The date of liquidation 
D) The date of declaration 
A) The date of record 
B) The date of payment 
C) The date of liquidation 
D) The date of declaration

Question 4

The total earnings of an employee for a payroll period is referred to as the net pay.

Accepted Answer

A) True 
 B)False

Question 5

If the market rate of interest is 9% and a corporation's bonds bear interest at 7%,the bonds will sell at a premium.

Accepted Answer

A) True 
 B)False

Question 6

A corporation has 200,000 shares of $100 par value stock outstanding.If the corporation issues a 2-for-1 stock split,the number of shares outstanding after the split will be:

Accepted Answer

A) 400,000 shares. 
B) 200,000 shares. 
C) 600,000 shares. 
D) 100,000 shares. 
A) 400,000 shares. 
B) 200,000 shares. 
C) 600,000 shares. 
D) 100,000 shares.

Question 7

A corporation has the following stockholders' equity accounts at the end of the current fiscal year,after the closing entries have been posted: Common Stock,$5 par,$2,000,000; Paid-In Capital in Excess of Par--Common Stock,$375,000; Retained Earnings,$1,285,000.The earnings for the current year,during which there were no unusual items,were $300,000.

Accepted Answer

$.75 per s

Question 8

Vivi Corporation's earnings per share of common stock was $1.50 and a market price of $33.50,calculate the price-earnings ratio.

Accepted Answer

A) 50.6 
B) 22.3 
C) 44.0 
D) 33.5 
A) 50.6 
B) 22.3 
C) 44.0 
D) 33.5

Question 9

Obligations that depend on future events and are based on past transactions are contingent liabilities.

Accepted Answer

A) True 
 B)False

Question 10

June Co.is considering the following alternative plans for financing the company:

Accepted Answer

Plan I Plan II Earnings before bond inte

Question 11

Federal unemployment compensation tax becomes an employer's liability at the time the employees are paid.

Accepted Answer

A) True 
 B)False

Question 12

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a:

Accepted Answer

A) stock dividend. 
B) stock split. 
C) stock option. 
D) preferred dividend. 
A) stock dividend. 
B) stock split. 
C) stock option. 
D) preferred dividend.

Question 13

When the contract rate of interest on bonds is higher than the market rate of interest,the bonds sell at:

Accepted Answer

A) a premium. 
B) their face value. 
C) their maturity value. 
D) a discount. 
A) a premium. 
B) their face value. 
C) their maturity value. 
D) a discount.

Question 14

Which of the following is listed under long-term liabilities?

Accepted Answer

A) Bonds payable due in 18 months 
B) Accrued interest payable 
C) Accounts payable 
D) Notes payable due in 90 days 
A) Bonds payable due in 18 months 
B) Accrued interest payable 
C) Accounts payable 
D) Notes payable due in 90 days

Question 15

A corporation has 10,000 shares outstanding of $25 par value and a current market value of $100 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock will fall to approximately $20.

Accepted Answer

A) True 
 B)False

Question 16

If bonds are issued at a premium,the stated interest rate is:

Accepted Answer

A) higher than the market rate of interest. 
B) lower than the market rate of interest. 
C) too low to attract investors. 
D) adjusted to a higher rate of interest. 
A) higher than the market rate of interest. 
B) lower than the market rate of interest. 
C) too low to attract investors. 
D) adjusted to a higher rate of interest.

Question 17

The excess of issue price over par of common stock is termed as:

Accepted Answer

A) discount. 
B) income. 
C) deficit. 
D) premium. 
A) discount. 
B) income. 
C) deficit. 
D) premium.

Question 18

If 20,000 shares are authorized,14,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $13,500.

Accepted Answer

A) True 
 B)False

Question 19

If 50,000 shares are authorized,37,000 shares are issued,and 2,000 shares are reacquired,the number of outstanding shares is 35,000.

Accepted Answer

A) True 
 B)False

Question 20

The total earnings of an employee for a payroll period is referred to as gross pay.

Accepted Answer

A) True 
 B)False

Stockholders' equity:

If a corporation issues only one class of stock,it is called:

On which of the following dates,a company incurs liability for a dividend?

The total earnings of an employee for a payroll period is referred to as the net pay.

If the market rate of interest is 9% and a corporation's bonds bear interest at 7%,the bonds will sell at a premium.

A corporation has 200,000 shares of $100 par value stock outstanding.If the corporation issues a 2-for-1 stock split,the number of shares outstanding after the split will be:

Vivi Corporation's earnings per share of common stock was $1.50 and a market price of $33.50,calculate the price-earnings ratio.

Obligations that depend on future events and are based on past transactions are contingent liabilities.

June Co.is considering the following alternative plans for financing the company:

Federal unemployment compensation tax becomes an employer's liability at the time the employees are paid.

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a:

When the contract rate of interest on bonds is higher than the market rate of interest,the bonds sell at:

Which of the following is listed under long-term liabilities?

A corporation has 10,000 shares outstanding of $25 par value and a current market value of $100 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock will fall to approximately $20.

If bonds are issued at a premium,the stated interest rate is:

The excess of issue price over par of common stock is termed as:

If 20,000 shares are authorized,14,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $13,500.

If 50,000 shares are authorized,37,000 shares are issued,and 2,000 shares are reacquired,the number of outstanding shares is 35,000.

The total earnings of an employee for a payroll period is referred to as gross pay.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 8: Liabilities and Stockholders Equity

Stockholders' equity:

If a corporation issues only one class of stock,it is called:

On which of the following dates,a company incurs liability for a dividend?

The total earnings of an employee for a payroll period is referred to as the net pay.

If the market rate of interest is 9% and a corporation's bonds bear interest at 7%,the bonds will sell at a premium.

A corporation has 200,000 shares of $100 par value stock outstanding.If the corporation issues a 2-for-1 stock split,the number of shares outstanding after the split will be:

Vivi Corporation's earnings per share of common stock was $1.50 and a market price of $33.50,calculate the price-earnings ratio.

Obligations that depend on future events and are based on past transactions are contingent liabilities.

June Co.is considering the following alternative plans for financing the company:

Federal unemployment compensation tax becomes an employer's liability at the time the employees are paid.

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a:

When the contract rate of interest on bonds is higher than the market rate of interest,the bonds sell at:

Which of the following is listed under long-term liabilities?

A corporation has 10,000 shares outstanding of $25 par value and a current market value of $100 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock will fall to approximately $20.

If bonds are issued at a premium,the stated interest rate is:

The excess of issue price over par of common stock is termed as:

If 20,000 shares are authorized,14,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $13,500.

If 50,000 shares are authorized,37,000 shares are issued,and 2,000 shares are reacquired,the number of outstanding shares is 35,000.

The total earnings of an employee for a payroll period is referred to as gross pay.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters