Question 1

Use the information below to answer the following question:   This information is part of the company's ________.

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of cash flows 
D) statement of operations 
A) income statement 
B) balance sheet 
C) statement of cash flows 
D) statement of operations

Question 2

On October 15,Manx Company bought 400 shares of its own stock for $16 per share.Show how this transaction affects the accounting equation.Include both account titles and amounts.

Accepted Answer

The answer of On October 15,Manx Company bought 400 shares...

Question 3

The management of Krupt,Inc.decided to buy back 30% of the shares of stock outstanding.What effect would this have on the company's total assets? Why would management want to do this? Is this ethical?

Accepted Answer

Total assets will decrease because cash

Question 4

Use the information below to answer the following question: Common stock,$1 par,100,000 shares
  How many shares of common stock are outstanding?

Accepted Answer

A) 46,000 shares 
B) 50,000 shares 
C) 1,000 shares 
D) 49,000 shares 
A) 46,000 shares 
B) 50,000 shares 
C) 1,000 shares 
D) 49,000 shares

Question 5

Which of the following is the best measure of a company's use of owners' investments?

Accepted Answer

A) asset turnover 
B) current assets 
C) return on assets 
D) return on equity 
A) asset turnover 
B) current assets 
C) return on assets 
D) return on equity

Question 6

Common stock's par value is usually ________.

Accepted Answer

A) equal to the market price of the common stock 
B) greater than the market price of the common stock 
C) less than the market price of the common stock 
D) zero 
A) equal to the market price of the common stock 
B) greater than the market price of the common stock 
C) less than the market price of the common stock 
D) zero

Question 7

Cumulative preferred stock means that ________.

Accepted Answer

A) 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 common shareholders 
B) the preferred dividend rate will increase each year the shares are outstanding 
C) preferred dividends accumulate as earnings accumulate 
D) the balance in the Preferred stock account is increased by any additional shares that are sold during the year 
A) 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 common shareholders 
B) the preferred dividend rate will increase each year the shares are outstanding 
C) preferred dividends accumulate as earnings accumulate 
D) the balance in the Preferred stock account is increased by any additional shares that are sold during the year

Question 8

Use the following information obtained from the company's computerized accounting information system to answer the question(s)below.Note: There were no preferred shares outstanding and no additional shares were issued in 2011.   Earnings per share for 2011 equals ________.

Accepted Answer

A) $20,000 
B) $0.26 per share 
C) $2.00 per share 
D) $1.00 per share 
A) $20,000 
B) $0.26 per share 
C) $2.00 per share 
D) $1.00 per share

Question 9

Team Shirts would like to start paying dividends to its loyal shareholders; however,it believes that the business cannot spare the cash for dividends.Explain how Team Shirts could use a stock split or stock dividend to reward shareholders instead of paying a cash dividend.

Accepted Answer

A stock dividend occurs when a corporati

Question 10

What is retained earnings.How is it calculated?

Accepted Answer

Retained earnings is the total amount of

Question 11

Which financial statement is the best place to look to determine the amount of dividends DECLARED?

Accepted Answer

A) Income statement 
B) Statement of changes in shareholders' equity 
C) Balance sheet 
D) Statement of cash flows 
A) Income statement 
B) Statement of changes in shareholders' equity 
C) Balance sheet 
D) Statement of cash flows

Question 12

Use the following information obtained from the company's computerized accounting information system to answer the question below.Note: There were no preferred shares outstanding and no additional shares were issued in 2011.   Return on equity for 2011,rounded to the nearest tenth of a percent,equals ________.

Accepted Answer

A) 26.3% 
B) 23.5% 
C) 12.5% 
D) 29.4% 
A) 26.3% 
B) 23.5% 
C) 12.5% 
D) 29.4%

Question 13

Albatross Shipping had 100,000 shares of common stock outstanding on January 1.On September 1,Albatross issued an additional 30,000 common shares.Albatross has no treasury stock.If its net income was $12,650 for the year,its earnings per share for the year was ________,rounded to the nearest cent.

Accepted Answer

A) $0.13 
B) $0.10 
C) $0.11 
D) $0.12 
A) $0.13 
B) $0.10 
C) $0.11 
D) $0.12

Question 14

Team Shirts had 25,000 shares of $1.00 par value common stock outstanding.It bought back 500 shares for $15.50 in the stock market to use for employee bonuses.On December 10,Team Shirts gave 250 shares to its employees as holiday bonuses.On December 31:
1.How many shares are outstanding?
2.How many shares are still held as treasury stock?

Accepted Answer

1.25,000 - 500 + 250

Question 15

Team Shirts had net income of $23,000.The balance sheet showed beginning and ending balances in shareholders' equity of $100,000 and $110,000,respectively.There were no preferred shares and 20,000 common shares outstanding.Calculate the return on equity.

Accepted Answer

A) 21.9% 
B) 1.15% 
C) 5.25% 
D) 4.56% 
A) 21.9% 
B) 1.15% 
C) 5.25% 
D) 4.56%

Question 16

The board of directors of Kim Brothers Fitness Center is going to declare the first-ever dividends for the new corporation.The total amount of cash available for dividends is $2,000.There are 50 shares outstanding of 10%,$100 par value preferred stock.There are 2,000 shares of common stock outstanding.
1.What is the TOTAL dollar amount of the dividend paid to preferred shareholders?
2.What is the dividend PER SHARE paid to preferred shareholders?
3.What is the TOTAL dollar amount of the dividend paid to common shareholders?
4.What is the dividend PER SHARE paid to common shareholders?

Accepted Answer

1.$500 = 10% x $100 par x 50 s

Question 17

AZ Best,Inc.'s corporate charter allows it to issue 1,500,000 shares of common stock.In 2011,its first year of business,the company sold 200,000 shares of common stock.In 2011,the company bought back 5,000 shares to be held as treasury stock.At December 31,2011,how many shares of common stock are outstanding?

Accepted Answer

A) 5,000 shares 
B) 1,300,000 shares 
C) 200,000 shares 
D) 195,000 shares 
A) 5,000 shares 
B) 1,300,000 shares 
C) 200,000 shares 
D) 195,000 shares

Question 18

The number of shares of stock a corporation may issue when a corporation is formed is called ________ shares.

Accepted Answer

A) authorized 
B) issued 
C) outstanding 
D) treasury 
A) authorized 
B) issued 
C) outstanding 
D) treasury

Question 19

Explain the difference between a stock dividend and stock split.

Accepted Answer

Corporations sometimes pay stock dividen

Question 20

Why do corporations purchase and own treasury stock?

Accepted Answer

Corporations purchase and hold treasury

Use the information below to answer the following question: This information is part of the company's ________.

On October 15,Manx Company bought 400 shares of its own stock for $16 per share.Show how this transaction affects the accounting equation.Include both account titles and amounts.

The management of Krupt,Inc.decided to buy back 30% of the shares of stock outstanding.What effect would this have on the company's total assets? Why would management want to do this? Is this ethical?

Use the information below to answer the following question: Common stock,$1 par,100,000 shares How many shares of common stock are outstanding?

Which of the following is the best measure of a company's use of owners' investments?

Common stock's par value is usually ________.

Cumulative preferred stock means that ________.

Use the following information obtained from the company's computerized accounting information system to answer the question(s)below.Note: There were no preferred shares outstanding and no additional shares were issued in 2011. Earnings per share for 2011 equals ________.

Team Shirts would like to start paying dividends to its loyal shareholders; however,it believes that the business cannot spare the cash for dividends.Explain how Team Shirts could use a stock split or stock dividend to reward shareholders instead of paying a cash dividend.

What is retained earnings.How is it calculated?

Which financial statement is the best place to look to determine the amount of dividends DECLARED?

Albatross Shipping had 100,000 shares of common stock outstanding on January 1.On September 1,Albatross issued an additional 30,000 common shares.Albatross has no treasury stock.If its net income was $12,650 for the year,its earnings per share for the year was ________,rounded to the nearest cent.

Team Shirts had net income of $23,000.The balance sheet showed beginning and ending balances in shareholders' equity of $100,000 and $110,000,respectively.There were no preferred shares and 20,000 common shares outstanding.Calculate the return on equity.

The number of shares of stock a corporation may issue when a corporation is formed is called ________ shares.

Explain the difference between a stock dividend and stock split.

Why do corporations purchase and own treasury stock?

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

Use the information below to answer the following question: This information is part of the company's ________.

On October 15,Manx Company bought 400 shares of its own stock for $16 per share.Show how this transaction affects the accounting equation.Include both account titles and amounts.

The management of Krupt,Inc.decided to buy back 30% of the shares of stock outstanding.What effect would this have on the company's total assets? Why would management want to do this? Is this ethical?

Use the information below to answer the following question: Common stock,$1 par,100,000 shares How many shares of common stock are outstanding?

Which of the following is the best measure of a company's use of owners' investments?

Common stock's par value is usually ________.

Cumulative preferred stock means that ________.

Use the following information obtained from the company's computerized accounting information system to answer the question(s)below.Note: There were no preferred shares outstanding and no additional shares were issued in 2011. Earnings per share for 2011 equals ________.

Team Shirts would like to start paying dividends to its loyal shareholders; however,it believes that the business cannot spare the cash for dividends.Explain how Team Shirts could use a stock split or stock dividend to reward shareholders instead of paying a cash dividend.

What is retained earnings.How is it calculated?

Which financial statement is the best place to look to determine the amount of dividends DECLARED?

Albatross Shipping had 100,000 shares of common stock outstanding on January 1.On September 1,Albatross issued an additional 30,000 common shares.Albatross has no treasury stock.If its net income was $12,650 for the year,its earnings per share for the year was ________,rounded to the nearest cent.

Team Shirts had net income of $23,000.The balance sheet showed beginning and ending balances in shareholders' equity of $100,000 and $110,000,respectively.There were no preferred shares and 20,000 common shares outstanding.Calculate the return on equity.

The number of shares of stock a corporation may issue when a corporation is formed is called ________ shares.

Explain the difference between a stock dividend and stock split.

Why do corporations purchase and own treasury stock?

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