Question 1

When no-par common stock without a stated value is issued for cash,the Common Stock account is credited for an amount equal to the cash proceeds.

Accepted Answer

A) True 
 B)False

Question 2

Book value per share of stock represents the amount of equity the shareholder of one share of stock has in the net assets of the company.

Accepted Answer

A) True 
 B)False

Question 3

The board of directors of Blount Corporation declared a cash dividend of $5.00 per share on 57,000 shares of common stock on April 14,2013.The dividend is to be paid on May 15,2013,to shareholders of record on May 1,2013.The proper entry to be recorded on May 15,2013,will be:

Accepted Answer

A)  Cash 285,000
Dividends Payable 285,000 
B)  Dividends Payable 285,000
Cash 285,000 
C)  Cash 285,000
Dividends 285,000 
D)  Dividends 285,000
Cash 285,000 
A)  Cash 285,000
Dividends Payable 285,000 
B)  Dividends Payable 285,000
Cash 285,000 
C)  Cash 285,000
Dividends 285,000 
D)  Dividends 285,000
Cash 285,000

Question 4

A corporation often uses an underwriter for an initial public offering (IPO).

Accepted Answer

A) True 
 B)False

Question 5

Kagel Corporation had 30,000 shares of $5 par value common stock issued and outstanding on December 31,2012.Each share was issued during 2010 at $14 per share.Prepare the entries in journal form without explanations for the following transactions occurring in 2013:

Accepted Answer

The answer of Kagel Corporation had 30,000 shares of $5...

Question 6

The preparation of a statement of stockholders' equity makes which other financial statement unnecessary?

Accepted Answer

A)  Income statement 
B)  Statement of cash flows 
C)  Statement of retained earnings 
D)  Balance sheet 
A)  Income statement 
B)  Statement of cash flows 
C)  Statement of retained earnings 
D)  Balance sheet

Question 7

Start-up and organization costs include state incorporation fees and attorneys' fees for drawing up the articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 8

Underwriters typically charge 5 percent of the selling price to guarantee the sale of initial public offerings of stock.

Accepted Answer

A) True 
 B)False

Question 9

A good measure of confidence in a corporation's future is

Accepted Answer

A)  par value. 
B)  price/earnings ratio. 
C)  dividends yield. 
D)  return on equity. 
A)  par value. 
B)  price/earnings ratio. 
C)  dividends yield. 
D)  return on equity.

Question 10

Stockholders are entitled to any dividends in arrears when a corporation calls in its preferred stock.

Accepted Answer

A) True 
 B)False

Question 11

A stock dividend exceeding 20 to 25 percent is properly treated as a stock split.

Accepted Answer

A) True 
 B)False

Question 12

The purchase of treasury stock will result in

Accepted Answer

A)  no net changes in assets,liabilities,or stockholders' equity. 
B)  a decrease in assets and a decrease in stockholders' equity. 
C)  an increase in assets and an increase in liabilities. 
D)  an increase in assets and an increase in stockholders' equity. 
A)  no net changes in assets,liabilities,or stockholders' equity. 
B)  a decrease in assets and a decrease in stockholders' equity. 
C)  an increase in assets and an increase in liabilities. 
D)  an increase in assets and an increase in stockholders' equity.

Question 13

Use the following information to answer the question below. 
The following accounts appear in the ledger of Bullock Corporation on December 31,2013:
  A balance sheet prepared on December 31,2013,would report total contributed capital of

Accepted Answer

A)  $172,000. 
B)  $186,000. 
C)  $222,000. 
D)  $302,000. 
A)  $172,000. 
B)  $186,000. 
C)  $222,000. 
D)  $302,000.

Question 14

When common stock is issued by a corporation for a cash price above par value,the excess of the cash proceeds over the par value should be reported in the financial statements as a component of

Accepted Answer

A)  retained earnings on the balance sheet. 
B)  total liabilities on the balance sheet. 
C)  operating income on the income statement. 
D)  total contributed capital on the balance sheet. 
A)  retained earnings on the balance sheet. 
B)  total liabilities on the balance sheet. 
C)  operating income on the income statement. 
D)  total contributed capital on the balance sheet.

Question 15

The number of shares of issued stock equals

Accepted Answer

A)  unissued shares plus authorized shares. 
B)  outstanding shares plus treasury shares. 
C)  authorized shares plus outstanding shares. 
D)  authorized shares minus treasury shares. 
A)  unissued shares plus authorized shares. 
B)  outstanding shares plus treasury shares. 
C)  authorized shares plus outstanding shares. 
D)  authorized shares minus treasury shares.

Question 16

On its December 31,2012,balance sheet,Houston Corporation reported its stockholders' equity as follows:
   During 2013,the following transactions occurred:
Reacquired 2,500 shares at $7 per share.
Issued 5,000 shares of common stock at $8 per share.
Cash dividends of $1 per share of common stock.
Net income for 2013 amounted to $80,000.No dividends were declared.
Prepare the Statement of Stockholders' Equity as it should appear on December 31,2013.

Accepted Answer

The answer of On its December 31,2012,balance sheet,Houston Corporation reported...

Question 17

The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $320,000. The entry to record transaction 3 would be:

Accepted Answer

A)  Equipment 280,000
Common Stock 280,000 
B)  Common Stock 280,000
Equipment 280,000 
C)  Equipment 320,000
Common Stock 320,000 
D)  Equipment 320,000
Common Stock 280,000
Additional Paid-in Capital 40,000 
A)  Equipment 280,000
Common Stock 280,000 
B)  Common Stock 280,000
Equipment 280,000 
C)  Equipment 320,000
Common Stock 320,000 
D)  Equipment 320,000
Common Stock 280,000
Additional Paid-in Capital 40,000

Question 18

One disadvantage of a corporation is the continuous existence of the corporation.

Accepted Answer

A) True 
 B)False

Question 19

On which of the following dates involving stock dividends does a liability arise?

Accepted Answer

A)  Date of distribution 
B)  Date of declaration 
C)  Date of record 
D)  On no date 
A)  Date of distribution 
B)  Date of declaration 
C)  Date of record 
D)  On no date

Question 20

When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for an amount equal to the cash proceeds.

Accepted Answer

A) True 
 B)False

When no-par common stock without a stated value is issued for cash,the Common Stock account is credited for an amount equal to the cash proceeds.

Book value per share of stock represents the amount of equity the shareholder of one share of stock has in the net assets of the company.

The board of directors of Blount Corporation declared a cash dividend of $5.00 per share on 57,000 shares of common stock on April 14,2013.The dividend is to be paid on May 15,2013,to shareholders of record on May 1,2013.The proper entry to be recorded on May 15,2013,will be:

A corporation often uses an underwriter for an initial public offering (IPO).

Kagel Corporation had 30,000 shares of $5 par value common stock issued and outstanding on December 31,2012.Each share was issued during 2010 at $14 per share.Prepare the entries in journal form without explanations for the following transactions occurring in 2013:

The preparation of a statement of stockholders' equity makes which other financial statement unnecessary?

Start-up and organization costs include state incorporation fees and attorneys' fees for drawing up the articles of incorporation.

Underwriters typically charge 5 percent of the selling price to guarantee the sale of initial public offerings of stock.

A good measure of confidence in a corporation's future is

Stockholders are entitled to any dividends in arrears when a corporation calls in its preferred stock.

A stock dividend exceeding 20 to 25 percent is properly treated as a stock split.

The purchase of treasury stock will result in

Use the following information to answer the question below. The following accounts appear in the ledger of Bullock Corporation on December 31,2013: A balance sheet prepared on December 31,2013,would report total contributed capital of

When common stock is issued by a corporation for a cash price above par value,the excess of the cash proceeds over the par value should be reported in the financial statements as a component of

The number of shares of issued stock equals

The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $320,000. The entry to record transaction 3 would be:

One disadvantage of a corporation is the continuous existence of the corporation.

On which of the following dates involving stock dividends does a liability arise?

When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for an amount equal to the cash proceeds.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 12: Stockholders Equity

When no-par common stock without a stated value is issued for cash,the Common Stock account is credited for an amount equal to the cash proceeds.

Book value per share of stock represents the amount of equity the shareholder of one share of stock has in the net assets of the company.

The board of directors of Blount Corporation declared a cash dividend of $5.00 per share on 57,000 shares of common stock on April 14,2013.The dividend is to be paid on May 15,2013,to shareholders of record on May 1,2013.The proper entry to be recorded on May 15,2013,will be:

A corporation often uses an underwriter for an initial public offering (IPO).

Kagel Corporation had 30,000 shares of $5 par value common stock issued and outstanding on December 31,2012.Each share was issued during 2010 at $14 per share.Prepare the entries in journal form without explanations for the following transactions occurring in 2013:

The preparation of a statement of stockholders' equity makes which other financial statement unnecessary?

Start-up and organization costs include state incorporation fees and attorneys' fees for drawing up the articles of incorporation.

Underwriters typically charge 5 percent of the selling price to guarantee the sale of initial public offerings of stock.

A good measure of confidence in a corporation's future is

Stockholders are entitled to any dividends in arrears when a corporation calls in its preferred stock.

A stock dividend exceeding 20 to 25 percent is properly treated as a stock split.

The purchase of treasury stock will result in

Use the following information to answer the question below. The following accounts appear in the ledger of Bullock Corporation on December 31,2013: A balance sheet prepared on December 31,2013,would report total contributed capital of

When common stock is issued by a corporation for a cash price above par value,the excess of the cash proceeds over the par value should be reported in the financial statements as a component of

The number of shares of issued stock equals

The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $320,000. The entry to record transaction 3 would be:

One disadvantage of a corporation is the continuous existence of the corporation.

On which of the following dates involving stock dividends does a liability arise?

When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for an amount equal to the cash proceeds.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters