Question 1

The date on which the board of directors of a corporation decides that earnings are sufficient to pay a dividend is the ________.

Accepted Answer

A) declaration date 
B) date of record 
C) date of payment 
D) dividend date 
A) declaration date 
B) date of record 
C) date of payment 
D) dividend date A

Question 2

A difference between preferred stock and common stock is preferred shareholders ________.

Accepted Answer

A) have voting rights,while common shareholders do not 
B) have the right to share in any assets left if the company goes out of business after both the creditors and common shareholders receive their share 
C) have the right to buy new shares in order to maintain their percentage ownership before the company can issue new shares to the general public 
D) must receive their dividends before any of the common shareholders are paid 
A) have voting rights,while common shareholders do not 
B) have the right to share in any assets left if the company goes out of business after both the creditors and common shareholders receive their share 
C) have the right to buy new shares in order to maintain their percentage ownership before the company can issue new shares to the general public 
D) must receive their dividends before any of the common shareholders are paid D

Question 3

Identify each of the following situations using the following items.Each item is used only once.
a.stock split
b.stock dividend
c.treasury stock
d.cash dividend
e.dividends in arrears
______ 1.Team Shirts exchanged two shares of new stock for every share of existing stock.
______ 2.U Bet,Inc.skipped this year's dividends for preferred stock.
______ 3.Team Shirts paid $1.00 to each shareholder.
______ 4.Team Shirts gave one share of stock for every 10 shares outstanding.
______ 5.Team Shirts bought 300 shares of Team Shirts' stock.

Accepted Answer

a,e,d,b,c

Question 4

Use the following information for Equitable,Inc.to answer the following question(s).Equitable issued no new common stock and had 100,000 common shares issued and outstanding during 2011.Equitable has no preferred stock.   What was return on equity for the year ended December 31,2011?

Accepted Answer

A) 54.0% 
B) 51.0% 
C) 102.8% 
D) 20.0% 
A) 54.0% 
B) 51.0% 
C) 102.8% 
D) 20.0%

Question 5

Treasury stock ________.

Accepted Answer

A) is a contra-equity account 
B) is the amount of stock issued by the company 
C) results in an increase in total shareholders' equity 
D) is a contra-asset account 
A) is a contra-equity account 
B) is the amount of stock issued by the company 
C) results in an increase in total shareholders' equity 
D) is a contra-asset account

Question 6

Retained earnings is also called ________ capital.

Accepted Answer

A) additional paid-in 
B) earned 
C) contributed 
D) paid-in 
A) additional paid-in 
B) earned 
C) contributed 
D) paid-in

Question 7

If 10,000 shares of $2 par value common stock are issued for $10 per share,then additional paid-in capital will increase by ________.

Accepted Answer

A) $120,000 
B) $100,000 
C) $80,000 
D) $20,000 
A) $120,000 
B) $100,000 
C) $80,000 
D) $20,000

Question 8

Match between columns
                        Premises: Preferred stock that is not entitled to receive past, unpaid dividends
Stock of a corporation that has been issued and has been repurchased by the issuing
Date when cash dividends are actually paid to shareholders of a corporation.
A distribution of earnings in the form of cash to the shareholders of a corporation
Date when the board of directors of a corporation authorizes the payment of dividends to the shareholders of the corporation
Date used to determine which shareholders should receive dividends; anyone owning stock on this date is entitled to receive dividends
Any dividends owed to the preferred shareholders from past years, but were not declared
Type of corporate stock that has preference rights over common stock
Corporate distribution of earnings to the shareholders of the corporation
Stock on which the fixed dividend amount accumulates from year to year; the entire amount of all past unpaid dividends must be paid to the preferred shareholders before any dividends can be paid to the common shareholders

Accepted Answer

The Answer of dividends and date of record and cumulative is...

Question 9

When common stock is issued,the amount recorded in Additional paid-in capital is ________.

Accepted Answer

A) the cash received minus the amount recorded in the Common stock account 
B) the cash received plus the amount received in excess of par 
C) the par value plus the market price of the stock 
D) nothing; Additional paid-in capital is not affected by issuing common stock 
A) the cash received minus the amount recorded in the Common stock account 
B) the cash received plus the amount received in excess of par 
C) the par value plus the market price of the stock 
D) nothing; Additional paid-in capital is not affected by issuing common stock

Question 10

Team Shirts issued 20,000 shares of stock for $20 per share.This transaction increased Cash $400,000 and increased ________ $400,000.

Accepted Answer

A) Paid-in capital 
B) Retained earnings 
C) Additional paid-in capital 
D) Treasury stock 
A) Paid-in capital 
B) Retained earnings 
C) Additional paid-in capital 
D) Treasury stock

Question 11

The owners of common stock do NOT have the specific right to ________.

Accepted Answer

A) vote for members of the board of directors 
B) share in the corporation's earning 
C) acquire more shares when a corporation issues more stock 
D) receive dividends automatically each year 
A) vote for members of the board of directors 
B) share in the corporation's earning 
C) acquire more shares when a corporation issues more stock 
D) receive dividends automatically each year

Question 12

Ice Video Corporation had average common shareholders' equity of $423,785.The company had net income during the year of $213,465.There were 258,000 shares of common stock outstanding throughout the year and no preferred stock at any time.Calculate earnings per share (round to the nearest cent).

Accepted Answer

$213,465 /

Question 13

Treasury stock is shown as ________ on the balance sheet.

Accepted Answer

A) a reduction of total shareholder's equity 
B) an addition to total shareholder's equity 
C) a reduction of total retained earnings 
D) an addition to total retained earnings 
A) a reduction of total shareholder's equity 
B) an addition to total shareholder's equity 
C) a reduction of total retained earnings 
D) an addition to total retained earnings

Question 14

Investors purchase preferred stock because preferred ________.

Accepted Answer

A) stock offers a possibility of a specified annual dividend 
B) dividends are increased each year 
C) shareholders have voting rights 
D) stock can always be converted to common stock 
A) stock offers a possibility of a specified annual dividend 
B) dividends are increased each year 
C) shareholders have voting rights 
D) stock can always be converted to common stock

Question 15

On December 15,2011,the board of directors of Ryes,Inc.declared a cash dividend of $2 per share on the 100,000 common shares outstanding,payable January 8,2012.No dividends were declared in 2012.For each item,write in the amount (even if $0)in the column of the one financial statement where the amount is found.

Accepted Answer

The answer of On December 15,2011,the board of directors of...

Question 16

Return on equity is ________.

Accepted Answer

A) net income divided by average shareholders' equity 
B) total shareholders' equity divided by the average number of outstanding common shares 
C) net income divided by the average number of common shares outstanding 
D) net income divided by sales 
A) net income divided by average shareholders' equity 
B) total shareholders' equity divided by the average number of outstanding common shares 
C) net income divided by the average number of common shares outstanding 
D) net income divided by sales

Question 17

Verst Corporation's state charter allows the corporation to issue 500,000 shares of $1 par value common stock.It has sold 305,000 shares of common stock to the public and it currently holds 5,000 shares of treasury stock.
1.How many shares are authorized?
2.How many shares are issued?
3.How many shares are outstanding?

Accepted Answer

1.authorized = 500,000 shares

Question 18

On February 1,Team Shirts announced a 4-for-1 stock split to be effective on February 15.On February 1,there were 45,000 shares of $1.00 par value common stock outstanding.
1.How many shares of Team Shirts' stock were outstanding after the stock split?
2.What is the new par value per share?

Accepted Answer

1.45,000 x 4 = 180,0

Question 19

Use the information below to answer the following question:   How much of this company's capital was paid-in by shareholders?

Accepted Answer

A) $ 40,000 
B) $160,000 
C) $200,000 
D) $294,000 
A) $ 40,000 
B) $160,000 
C) $200,000 
D) $294,000

Question 20

The most widely-used indicator of a company's overall performance is________.

Accepted Answer

A) return on equity 
B) earnings per share 
C) sales 
D) profit margin 
A) return on equity 
B) earnings per share 
C) sales 
D) profit margin

The date on which the board of directors of a corporation decides that earnings are sufficient to pay a dividend is the ________.

A difference between preferred stock and common stock is preferred shareholders ________.

Use the following information for Equitable,Inc.to answer the following question(s).Equitable issued no new common stock and had 100,000 common shares issued and outstanding during 2011.Equitable has no preferred stock. What was return on equity for the year ended December 31,2011?

Treasury stock ________.

Retained earnings is also called ________ capital.

If 10,000 shares of $2 par value common stock are issued for $10 per share,then additional paid-in capital will increase by ________.

When common stock is issued,the amount recorded in Additional paid-in capital is ________.

Team Shirts issued 20,000 shares of stock for $20 per share.This transaction increased Cash $400,000 and increased ________ $400,000.

The owners of common stock do NOT have the specific right to ________.

Ice Video Corporation had average common shareholders' equity of $423,785.The company had net income during the year of $213,465.There were 258,000 shares of common stock outstanding throughout the year and no preferred stock at any time.Calculate earnings per share (round to the nearest cent).

Treasury stock is shown as ________ on the balance sheet.

Investors purchase preferred stock because preferred ________.

Return on equity is ________.

On February 1,Team Shirts announced a 4-for-1 stock split to be effective on February 15.On February 1,there were 45,000 shares of $1.00 par value common stock outstanding. 1.How many shares of Team Shirts' stock were outstanding after the stock split? 2.What is the new par value per share?

Use the information below to answer the following question: How much of this company's capital was paid-in by shareholders?

The most widely-used indicator of a company's overall performance is________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 8: Accounting for Shareholders Equity

The date on which the board of directors of a corporation decides that earnings are sufficient to pay a dividend is the ________.

A difference between preferred stock and common stock is preferred shareholders ________.

Use the following information for Equitable,Inc.to answer the following question(s).Equitable issued no new common stock and had 100,000 common shares issued and outstanding during 2011.Equitable has no preferred stock. What was return on equity for the year ended December 31,2011?

Treasury stock ________.

Retained earnings is also called ________ capital.

If 10,000 shares of $2 par value common stock are issued for $10 per share,then additional paid-in capital will increase by ________.

When common stock is issued,the amount recorded in Additional paid-in capital is ________.

Team Shirts issued 20,000 shares of stock for $20 per share.This transaction increased Cash $400,000 and increased ________ $400,000.

The owners of common stock do NOT have the specific right to ________.

Ice Video Corporation had average common shareholders' equity of $423,785.The company had net income during the year of $213,465.There were 258,000 shares of common stock outstanding throughout the year and no preferred stock at any time.Calculate earnings per share (round to the nearest cent).

Treasury stock is shown as ________ on the balance sheet.

Investors purchase preferred stock because preferred ________.

Return on equity is ________.

On February 1,Team Shirts announced a 4-for-1 stock split to be effective on February 15.On February 1,there were 45,000 shares of $1.00 par value common stock outstanding. 1.How many shares of Team Shirts' stock were outstanding after the stock split? 2.What is the new par value per share?

Use the information below to answer the following question: How much of this company's capital was paid-in by shareholders?

The most widely-used indicator of a company's overall performance is________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters