Question 1

What are the rights generally granted to common stockholders?

Accepted Answer

Common stockholders generally have the r

Question 2

Changes in accounting estimates are accounted for in current and future periods.

Accepted Answer

A) True 
 B)False

Question 3

A company has $2,400,000 in stockholders' equity that includes 500 shares of $50 par value preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1)preferred share,and (2)common share.

Accepted Answer

(1)Book value/preferred share:

Question 4

Dividing stockholders' equity applicable to common shares by the number of common shares outstanding yields the book value per common share.

Accepted Answer

A) True 
 B)False

Question 5

Gracey's Department Stores has $200,000 of 6% noncumulative,nonparticipating,preferred stock outstanding.Gracey's also has $600,000 of common stock outstanding.During its first year,the company paid cash dividends of $30,000.This dividend should be distributed as follows:

Accepted Answer

A) $15,000 preferred; $15,000 common. 
B) $6,000 preferred; $24,000 common. 
C) $30,000 preferred; $0 common. 
D) $12,000 preferred; $18,000 common. 
E) $0 preferred; $30,000 common. 
A) $15,000 preferred; $15,000 common. 
B) $6,000 preferred; $24,000 common. 
C) $30,000 preferred; $0 common. 
D) $12,000 preferred; $18,000 common. 
E) $0 preferred; $30,000 common.

Question 6

Boron Company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock,and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

Accepted Answer

The answer of Boron Company is authorized to issue 50,000...

Question 7

A corporation reports the following year-end stockholders' equity:
   Determine the following:
(1)Par value for the preferred stock.
(2)Book value per share for common stock

Accepted Answer

(1)Preferred stock p

Question 8

A company issued 60 shares of $100 par value common stock for $7,000 cash.The total amount of paid-in capital is:

Accepted Answer

A) $100. 
B) $600. 
C) $1,000. 
D) $6,000. 
E) $7,000. 
A) $100. 
B) $600. 
C) $1,000. 
D) $6,000. 
E) $7,000.

Question 9

A company reported the following stockholders' equity on January 1 of the current year:
   Prepare journal entries for the following selected transactions related to this company's stock during the current year:

Accepted Answer

The answer of A company reported the following stockholders' equity...

Question 10

Explain the difference between a large stock dividend and a small stock dividend.In addition,explain how to record these two types of stock dividends.

Accepted Answer

A large stock dividend is a distribution

Question 11

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company has no preferred stock.The company's earnings per share is:

Accepted Answer

A) $1.65. 
B) $1.59. 
C) $44.00. 
D) $26.67. 
E) $1.71. 
A) $1.65. 
B) $1.59. 
C) $44.00. 
D) $26.67. 
E) $1.71.

Question 12

The price-earnings ratio reveals information about the stock market's expectations for a company's future earnings growth.

Accepted Answer

A) True 
 B)False

Question 13

Changes in accounting estimates are:

Accepted Answer

A) Considered accounting errors. 
B) Reported as prior period adjustments. 
C) Accounted for with a cumulative "catch-up" adjustment. 
D) Statement of cash flow items. 
E) Accounted for in current and future periods. 
A) Considered accounting errors. 
B) Reported as prior period adjustments. 
C) Accounted for with a cumulative "catch-up" adjustment. 
D) Statement of cash flow items. 
E) Accounted for in current and future periods.

Question 14

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

Accepted Answer

A) Stock dividend. 
B) Stock subscription. 
C) Premium on stock. 
D) Discount on stock. 
E) Treasury stock. 
A) Stock dividend. 
B) Stock subscription. 
C) Premium on stock. 
D) Discount on stock. 
E) Treasury stock.

Question 15

Stated value stock is no-par stock that is assigned a "stated" value per share.

Accepted Answer

A) True 
 B)False

Question 16

Treasury stock is classified as:

Accepted Answer

A) An asset account. 
B) A contra asset account. 
C) A revenue account. 
D) A contra equity account. 
E) A liability account. 
A) An asset account. 
B) A contra asset account. 
C) A revenue account. 
D) A contra equity account. 
E) A liability account.

Question 17

A corporation had stockholders' equity on January 1 as follows: Common Stock,$1 par value,1,500,000 shares authorized,600,000 shares issued; Paid-in Capital in Excess of Par Value,Common Stock,$1,100,000; Retained Earnings,$2,300,000.Prepare journal entries to record the following transactions:

Accepted Answer

The answer of A corporation had stockholders' equity on January...

Question 18

Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends.  
-The total amount of dividends paid to preferred and common shareholders over the three-year period is:

Accepted Answer

A) $15,000 preferred; $25,000 common. 
B) $11,000 preferred; $29,000 common. 
C) $5,000 preferred; $35,000 common. 
D) $12,000 preferred; $28,000 common. 
E) $10,000 preferred; $30,000 common. 
A) $15,000 preferred; $25,000 common. 
B) $11,000 preferred; $29,000 common. 
C) $5,000 preferred; $35,000 common. 
D) $12,000 preferred; $28,000 common. 
E) $10,000 preferred; $30,000 common.

Question 19

A liquidating dividend is:

Accepted Answer

A) Only declared when a corporation closes down. 
B) A return of a portion of the capital contributed back to the stockholders. 
C) Not allowed under federal law. 
D) Only paid in assets other than cash. 
E) Only paid in shares of stock. 
A) Only declared when a corporation closes down. 
B) A return of a portion of the capital contributed back to the stockholders. 
C) Not allowed under federal law. 
D) Only paid in assets other than cash. 
E) Only paid in shares of stock.

Question 20

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Accepted Answer

A) True 
 B)False

Exam 11: Corporate Reporting and Analysis

What are the rights generally granted to common stockholders?

Changes in accounting estimates are accounted for in current and future periods.

A company has $2,400,000 in stockholders' equity that includes 500 shares of $50 par value preferred stock outstanding and 250,000 shares of common stock outstanding.Calculate the book value per (1)preferred share,and (2)common share.

Dividing stockholders' equity applicable to common shares by the number of common shares outstanding yields the book value per common share.

Gracey's Department Stores has $200,000 of 6% noncumulative,nonparticipating,preferred stock outstanding.Gracey's also has $600,000 of common stock outstanding.During its first year,the company paid cash dividends of $30,000.This dividend should be distributed as follows:

Boron Company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock,and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

A corporation reports the following year-end stockholders' equity: Determine the following: (1)Par value for the preferred stock. (2)Book value per share for common stock

A company issued 60 shares of $100 par value common stock for $7,000 cash.The total amount of paid-in capital is:

A company reported the following stockholders' equity on January 1 of the current year: Prepare journal entries for the following selected transactions related to this company's stock during the current year:

Explain the difference between a large stock dividend and a small stock dividend.In addition,explain how to record these two types of stock dividends.

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company has no preferred stock.The company's earnings per share is:

The price-earnings ratio reveals information about the stock market's expectations for a company's future earnings growth.

Changes in accounting estimates are:

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

Stated value stock is no-par stock that is assigned a "stated" value per share.

Treasury stock is classified as:

A corporation had stockholders' equity on January 1 as follows: Common Stock,$1 par value,1,500,000 shares authorized,600,000 shares issued; Paid-in Capital in Excess of Par Value,Common Stock,$1,100,000; Retained Earnings,$2,300,000.Prepare journal entries to record the following transactions:

A liquidating dividend is:

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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