Question 1

Stock splits occur when a corporation wants to decrease the market price per share of its stock.

Accepted Answer

A) True 
 B)False

Question 2

Stock that has been sold and then repurchased by the issuing corporation is called ________ stock.

Accepted Answer

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

Question 3

On May 20,Team Shirts paid a 10% stock dividend to shareholders of record on June 15.
On June 15,there were 100,000 shares of stock outstanding.How many shares of Team Shirts' stock were outstanding after the stock dividend was paid?

Accepted Answer

100,000 sh

Question 4

Which of the following will cause total shareholders' equity to decrease?

Accepted Answer

A) issuing common stock 
B) selling treasury stock 
C) repaying a bond's principal 
D) purchasing treasury stock 
A) issuing common stock 
B) selling treasury stock 
C) repaying a bond's principal 
D) purchasing treasury stock

Question 5

Retained earnings includes the earnings kept by a company since the day it began.

Accepted Answer

A) True 
 B)False

Question 6

The purchase of treasury stock reduces a company's assets and shareholders' equity.

Accepted Answer

A) True 
 B)False

Question 7

Angelique's Antiques declared and paid cash dividends of $25,000.There were 1,000 shares of 10%,$30 par value,noncumulative preferred stock outstanding.How much of the cash dividends were paid to PREFERRED shareholders?

Accepted Answer

A) $0 
B) $3,000 
C) $22,000 
D) $25,000 
A) $0 
B) $3,000 
C) $22,000 
D) $25,000

Question 8

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 issued?

Accepted Answer

A) 5,000 shares 
B) 1,300,000 shares 
C) 200,000 shares 
D) 1,500,000 shares 
A) 5,000 shares 
B) 1,300,000 shares 
C) 200,000 shares 
D) 1,500,000 shares

Question 9

Preferred stock has preference over common stock when dividends are paid.

Accepted Answer

A) True 
 B)False

Question 10

Team Shirts had an exceptional second quarter and earned net income of $250,000.On August 1,the board of directors of Team Shirts declared a $1.00 per share cash dividend to be paid on August 15 to shareholders owning company stock on August 10.What are the dates of declaration,record,and payment?

Accepted Answer

Declaration date: Au

Question 11

Dividends are distributions of a corporation's earnings to its shareholders.

Accepted Answer

A) True 
 B)False

Question 12

A corporation's distribution of new shares of stock to the corporation's current shareholders is called a ________.

Accepted Answer

A) cash dividend 
B) liquidating dividend 
C) stock dividend 
D) stock split 
A) cash dividend 
B) liquidating dividend 
C) stock dividend 
D) stock split

Question 13

The purchase of treasury stock ________ a corporation's assets and ________ its shareholders' equity.

Accepted Answer

A) increases; increases 
B) decreases; increases 
C) increases; decreases 
D) decreases; decreases 
A) increases; increases 
B) decreases; increases 
C) increases; decreases 
D) decreases; decreases

Question 14

Dale Murphy Company had beginning retained earnings of $60,000.During the year the company had net income of $20,000,and paid dividends of $7,500.The Company repurchased 1,000 shares of its stock for $45 during the period.What is the net effect of these transactions on the items shown below?

Accepted Answer

A) increase Retained earnings; increase Total shareholders' equity 
B) increase Retained earnings; decrease Total shareholders' equity 
C) decrease Retained earnings; increase Total shareholders' equity 
D) decrease Retained earnings; decrease Total shareholders' equity 
A) increase Retained earnings; increase Total shareholders' equity 
B) increase Retained earnings; decrease Total shareholders' equity 
C) decrease Retained earnings; increase Total shareholders' equity 
D) decrease Retained earnings; decrease Total shareholders' equity

Question 15

The date of record is the date ________.

Accepted Answer

A) on which the board of directors of a corporation announces that a dividend will be paid 
B) used to determine exactly who will receive dividends 
C) when cash is actually paid to the shareholders 
D) when earnings are declared 
A) on which the board of directors of a corporation announces that a dividend will be paid 
B) used to determine exactly who will receive dividends 
C) when cash is actually paid to the shareholders 
D) when earnings are declared

Question 16

Mufti Company issued 1,500 shares of its $1 par value common stock.The market price on the day of sale was $15 per share.Describe the effect of this transaction on each of the following items:
1.Cash
2.Total paid-in capital
3.Capital stock
4.Additional paid-in capital

Accepted Answer

1.Cash increases $22,500
2.Tot

Question 17

The owners of ________ stock have the specific right to vote for members of the board of directors.

Accepted Answer

A) common 
B) preferred 
C) treasury 
D) both common and preferred 
A) common 
B) preferred 
C) treasury 
D) both common and preferred

Question 18

When a company issues additional shares of stock during the year,its earnings per share will most likely increase.

Accepted Answer

A) True 
 B)False

Question 19

Retained earnings is also known as earned capital.

Accepted Answer

A) True 
 B)False

Question 20

Retained earnings is the ________.

Accepted Answer

A) past profits and dividends maintained in treasury 
B) beginning retained earnings plus net income minus dividends 
C) past distributed profits 
D) minimum legal capital that must be retained by the company 
A) past profits and dividends maintained in treasury 
B) beginning retained earnings plus net income minus dividends 
C) past distributed profits 
D) minimum legal capital that must be retained by the company

Stock splits occur when a corporation wants to decrease the market price per share of its stock.

Stock that has been sold and then repurchased by the issuing corporation is called ________ stock.

On May 20,Team Shirts paid a 10% stock dividend to shareholders of record on June 15. On June 15,there were 100,000 shares of stock outstanding.How many shares of Team Shirts' stock were outstanding after the stock dividend was paid?

Which of the following will cause total shareholders' equity to decrease?

Retained earnings includes the earnings kept by a company since the day it began.

The purchase of treasury stock reduces a company's assets and shareholders' equity.

Angelique's Antiques declared and paid cash dividends of $25,000.There were 1,000 shares of 10%,$30 par value,noncumulative preferred stock outstanding.How much of the cash dividends were paid to PREFERRED shareholders?

Preferred stock has preference over common stock when dividends are paid.

Team Shirts had an exceptional second quarter and earned net income of $250,000.On August 1,the board of directors of Team Shirts declared a $1.00 per share cash dividend to be paid on August 15 to shareholders owning company stock on August 10.What are the dates of declaration,record,and payment?

Dividends are distributions of a corporation's earnings to its shareholders.

A corporation's distribution of new shares of stock to the corporation's current shareholders is called a ________.

The purchase of treasury stock a corporation's assets and its shareholders' equity.

Dale Murphy Company had beginning retained earnings of $60,000.During the year the company had net income of $20,000,and paid dividends of $7,500.The Company repurchased 1,000 shares of its stock for $45 during the period.What is the net effect of these transactions on the items shown below?

The date of record is the date ________.

Mufti Company issued 1,500 shares of its $1 par value common stock.The market price on the day of sale was $15 per share.Describe the effect of this transaction on each of the following items: 1.Cash 2.Total paid-in capital 3.Capital stock 4.Additional paid-in capital

The owners of ________ stock have the specific right to vote for members of the board of directors.

When a company issues additional shares of stock during the year,its earnings per share will most likely increase.

Retained earnings is also known as earned capital.

Retained earnings is the ________.

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

Stock splits occur when a corporation wants to decrease the market price per share of its stock.

Stock that has been sold and then repurchased by the issuing corporation is called ________ stock.

On May 20,Team Shirts paid a 10% stock dividend to shareholders of record on June 15. On June 15,there were 100,000 shares of stock outstanding.How many shares of Team Shirts' stock were outstanding after the stock dividend was paid?

Which of the following will cause total shareholders' equity to decrease?

Retained earnings includes the earnings kept by a company since the day it began.

The purchase of treasury stock reduces a company's assets and shareholders' equity.

Angelique's Antiques declared and paid cash dividends of $25,000.There were 1,000 shares of 10%,$30 par value,noncumulative preferred stock outstanding.How much of the cash dividends were paid to PREFERRED shareholders?

Preferred stock has preference over common stock when dividends are paid.

Team Shirts had an exceptional second quarter and earned net income of $250,000.On August 1,the board of directors of Team Shirts declared a $1.00 per share cash dividend to be paid on August 15 to shareholders owning company stock on August 10.What are the dates of declaration,record,and payment?

Dividends are distributions of a corporation's earnings to its shareholders.

A corporation's distribution of new shares of stock to the corporation's current shareholders is called a ________.

The purchase of treasury stock ________ a corporation's assets and ________ its shareholders' equity.

Dale Murphy Company had beginning retained earnings of $60,000.During the year the company had net income of $20,000,and paid dividends of $7,500.The Company repurchased 1,000 shares of its stock for $45 during the period.What is the net effect of these transactions on the items shown below?

The date of record is the date ________.

Mufti Company issued 1,500 shares of its $1 par value common stock.The market price on the day of sale was $15 per share.Describe the effect of this transaction on each of the following items: 1.Cash 2.Total paid-in capital 3.Capital stock 4.Additional paid-in capital

The owners of ________ stock have the specific right to vote for members of the board of directors.

When a company issues additional shares of stock during the year,its earnings per share will most likely increase.

Retained earnings is also known as earned capital.

Retained earnings is the ________.

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

The purchase of treasury stock a corporation's assets and its shareholders' equity.