Question 1

What is a stock split? How is a stock split different from a stock dividend?

Accepted Answer

A stock split is the distribution of add

Question 2

________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

Accepted Answer

The answer of ________ is the annual amount of cash...

Question 3

A stock split can be done in any ratio.

Accepted Answer

A) True 
 B)False

Question 4

A common statutory restriction is reported on the income statement; whereas a common contractual restriction is reported in the stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

A class of stock for which there is no minimum legal capital is called:

Accepted Answer

A) Convertible stock. 
B) No-par stock. 
C) Callable stock. 
D) Noncumulative stock. 
E) Discounted stock. 
A) Convertible stock. 
B) No-par stock. 
C) Callable stock. 
D) Noncumulative stock. 
E) Discounted stock.

Question 6

All of the following statements regarding stock dividends are true except:

Accepted Answer

A) Directors can use stock dividends to keep the market price of the stock affordable. 
B) Stock dividends provide evidence of management's confidence that the company is doing well. 
C) Stock dividends do not reduce assets or equity. 
D) Stock dividends decrease the number of shares outstanding. 
E) Stock dividends transfer a portion of equity from retained earnings to contributed capital. 
A) Directors can use stock dividends to keep the market price of the stock affordable. 
B) Stock dividends provide evidence of management's confidence that the company is doing well. 
C) Stock dividends do not reduce assets or equity. 
D) Stock dividends decrease the number of shares outstanding. 
E) Stock dividends transfer a portion of equity from retained earnings to contributed capital.

Question 7

A company had the following stockholders' equity on January 1:
   On January 10,the company declared a 40% stock dividend to stockholders of record on January 25,to be distributed January 31.The market value of the stock on January 10 prior to the dividend was $20 per share.What is the book value per common share on February 1?

Accepted Answer

Total stockholders' equity does not chan

Question 8

Stated value of no-par stock is:

Accepted Answer

A) Another name for redemption value. 
B) An amount assigned to par value stock by the state of incorporation. 
C) The market value of the stock on the date of issuance. 
D) The difference between the par value of stock and the amount below or above par value paid-in by the stockholder. 
E) An amount assigned to no-par stock by the corporation's board of directors. 
A) Another name for redemption value. 
B) An amount assigned to par value stock by the state of incorporation. 
C) The market value of the stock on the date of issuance. 
D) The difference between the par value of stock and the amount below or above par value paid-in by the stockholder. 
E) An amount assigned to no-par stock by the corporation's board of directors.

Question 9

A stock ________ keeps stockholder records and prepares official lists of stockholders for stockholder meetings and dividend payments.

Accepted Answer

The answer of A stock ________ keeps stockholder records and...

Question 10

When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of cumulative dividends,the unpaid amount is called ________.

Accepted Answer

The answer of When preferred stock is cumulative and the...

Question 11

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Accepted Answer

A) True 
 B)False

Question 12

A company paid $0.85 in cash dividends per share.Its earnings per share is $3.50,and its market price per share is $35.50.Its dividend yield equals:

Accepted Answer

A) 2.0%. 
B) 2.4%. 
C) 9.9%. 
D) 21.4%. 
E) 24.2%. 
A) 2.0%. 
B) 2.4%. 
C) 9.9%. 
D) 21.4%. 
E) 24.2%.

Question 13

A stock dividend,declared by a corporation's directors,is a distribution of additional shares of the corporation's own stock to its stockholders without any payment in return.

Accepted Answer

A) True 
 B)False

Question 14

A corporation had the following stock outstanding when the company's board of directors declared a $55,000 cash dividend during the current year:
 
Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 15

A special right often granted to preferred stock is additional voting privileges.

Accepted Answer

A) True 
 B)False

Question 16

A liability for a cash dividend does not exist until the directors declare a cash dividend.

Accepted Answer

A) True 
 B)False

Question 17

A company has 500 shares of $60 par value preferred stock outstanding.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

Accepted Answer

A) $31.71. 
B) $32.50. 
C) $32.75. 
D) $33.17. 
E) $60.00. 
A) $31.71. 
B) $32.50. 
C) $32.75. 
D) $33.17. 
E) $60.00.

Question 18

A company was organized in January Year 1 and has 20,000 shares of $10 par value,10%,nonparticipating preferred stock outstanding and 150,000 shares of $2 par value common stock outstanding.It has declared and paid cash dividends each year as shown below.Calculate the total dividends distributed to each class of stockholder under each of the assumptions given.

Accepted Answer

@#IMG-DLM& Preferred dividend:

Question 19

If a company has no preferred stock,basic earnings per share is equal to net income divided by the number of weighted average common shares outstanding.

Accepted Answer

A) True 
 B)False

Question 20

The dividend yield is computed by dividing:

Accepted Answer

A) Annual cash dividends per share by earnings per share. 
B) Earnings per share by cash dividends per share. 
C) Annual cash dividends per share by the market value per share. 
D) Par value per share by cash dividends per share. 
E) Cash dividends per share by retained earnings. 
A) Annual cash dividends per share by earnings per share. 
B) Earnings per share by cash dividends per share. 
C) Annual cash dividends per share by the market value per share. 
D) Par value per share by cash dividends per share. 
E) Cash dividends per share by retained earnings.

Exam 11: Corporate Reporting and Analysis

What is a stock split? How is a stock split different from a stock dividend?

________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

A stock split can be done in any ratio.

A common statutory restriction is reported on the income statement; whereas a common contractual restriction is reported in the stockholders' equity section of the balance sheet.

A class of stock for which there is no minimum legal capital is called:

All of the following statements regarding stock dividends are true except:

Stated value of no-par stock is:

A stock ________ keeps stockholder records and prepares official lists of stockholders for stockholder meetings and dividend payments.

When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of cumulative dividends,the unpaid amount is called ________.

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

A company paid $0.85 in cash dividends per share.Its earnings per share is $3.50,and its market price per share is $35.50.Its dividend yield equals:

A stock dividend,declared by a corporation's directors,is a distribution of additional shares of the corporation's own stock to its stockholders without any payment in return.

A special right often granted to preferred stock is additional voting privileges.

A liability for a cash dividend does not exist until the directors declare a cash dividend.

A company has 500 shares of $60 par value preferred stock outstanding.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

If a company has no preferred stock,basic earnings per share is equal to net income divided by the number of weighted average common shares outstanding.

The dividend yield is computed by dividing:

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

Filters