Exam 12: Stockholders Equity

If there is no change in the number of shares authorized and issued from one year to the next,but there is a change in the number of shares outstanding on those same dates,how would you explain that change?

The entry to record the declaration of a cash dividend will

When shares of preferred stock may be redeemed by the corporation at a certain price,the shares are said to be

The purpose of a statement of stockholders' equity is to

A small stock dividend should be recorded on the basis of

Shares of treasury stock are

Which of the following items will not be disclosed on a statement of stockholders' equity?

The cost of treasury stock is deducted from total Contributed Capital and Retained Earnings in determining total stockholders' equity.

The Dividends account is closed by transferring to Retained Earnings at the end of the period.

The number of authorized shares should always equal or exceed the number of outstanding shares.

Use the following information to obtain the ratios requested below.Where necessary,carry answers to one decimal place. Dividends per share: $.76 Market price per share: $40 Net income: $64,000 Stockholders' equity,beginning of year: $500,000 Stockholders' equity,end of year: $530,000 Earnings per share: $1.75 a.Dividends yield = _____________% b.Return on equity = _____________% c.Price/earnings (P/E)ratio = __________ times

Macon Corporation has 3,000 shares of $300 par value,7 percent cumulative preferred stock,and 10,000 shares of $30 par value common stock outstanding during its first five years of operation.Macon Corporation paid cash dividends as follows: 2009,$42,000; 2010,$54,000; 2011,$195,000; 2012,$90,000; 2013,$45,000.The amount of dividends received by the preferred stockholders during 2013 was

A disadvantage of the corporate form of business is

Which of the following is a correct statement relating to the concept of mutual agency and the corporate form of business?

When treasury stock is sold at a price below its cost,the entry to record the sale has the effect of reducing total stockholders' equity.

Winston Corporation has retained earnings of $400,000.It has 5,000 shares of 6 percent,$200 par value preferred stock outstanding that is callable at 102.The preferred stock is cumulative,and one year of dividends is in arrears.It also has 10,000 shares of $100 par value common stock outstanding.Assume all stock is issued at par.The book value of each share of common stock is

Preferred stock is least likely to have which of the following characteristics?

A stock dividend does not affect the total amount of stockholders' equity.

A dividend that represents a return to the stockholders of a part of their paid-in capital rather than a distribution out of retained earnings is called a cash dividend.

The account Common Stock Distributable is classified as a stockholders' equity account.