Question 1

Dividend yield is defined as the annual cash dividends per share divided by the market price per share of a company's stock.

Accepted Answer

A) True 
 B)False

Question 2

Stockholders' equity consists of paid-in capital and retained earnings.

Accepted Answer

A) True 
 B)False

Question 3

Common Stock Dividend Distributable is a liability account.

Accepted Answer

A) True 
 B)False

Question 4

Small stock dividends are recorded at par or stated value.

Accepted Answer

A) True 
 B)False

Question 5

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.

Accepted Answer

Retained Earnings =

Question 6

Stock is attractive to investors because stockholders are not liable for the corporation's actions and debts and because stock is easily transferred.

Accepted Answer

A) True 
 B)False

Question 7

The amount of income earned per share of a company's outstanding common stock is known as:

Accepted Answer

A) Restricted retained earnings per share. 
B) Earnings per share. 
C) Continuing operations per share. 
D) Dividends per share. 
E) Book value per share. 
A) Restricted retained earnings per share. 
B) Earnings per share. 
C) Continuing operations per share. 
D) Dividends per share. 
E) Book value per share.

Question 8

The statement of changes in stockholders' equity:

Accepted Answer

A) Is part of the statement of retained earnings. 
B) Shows only the ending balances in stockholders' equity. 
C) Describes changes in paid-in capital and retained earnings subcategories. 
D) Does not include changes in treasury stock. 
E) Is reported by very few companies. 
A) Is part of the statement of retained earnings. 
B) Shows only the ending balances in stockholders' equity. 
C) Describes changes in paid-in capital and retained earnings subcategories. 
D) Does not include changes in treasury stock. 
E) Is reported by very few companies.

Question 9

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding.The journal entry to record the payment of the cash dividend is:

Accepted Answer

A) Debit Dividend Expense $12,000; credit Cash $12,000. 
B) Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. 
C) Debit Common Dividend Payable $12,000; credit Cash $12,000. 
D) Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. 
E) Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000. 
A) Debit Dividend Expense $12,000; credit Cash $12,000. 
B) Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. 
C) Debit Common Dividend Payable $12,000; credit Cash $12,000. 
D) Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. 
E) Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.

Question 10

________ is the amount of income earned per share of a company's outstanding common stock.

Accepted Answer

The answer of ________ is the amount of income earned...

Question 11

A corporation had the following stock outstanding when the company's board of directors declared a $75,000 cash dividend in the current year:
   Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

Accepted Answer

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

Question 12

The number of shares that a corporation's charter allows it to sell is the ________ stock.

Accepted Answer

The answer of The number of shares that a corporation's...

Question 13

A corporation with $10 par common stock issues a large stock dividend.The capitalization of retained earnings is equal to:

Accepted Answer

A) The par value of the shares to be distributed. 
B) The par value of the shares outstanding. 
C) The market value of the shares to be distributed. 
D) The market value of the shares outstanding. 
E) There is no capitalization of retained earnings in the case of a large stock dividend. 
A) The par value of the shares to be distributed. 
B) The par value of the shares outstanding. 
C) The market value of the shares to be distributed. 
D) The market value of the shares outstanding. 
E) There is no capitalization of retained earnings in the case of a large stock dividend.

Question 14

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 amount of dividends paid to preferred and common shareholders in year 3 is:

Accepted Answer

A) $7,000 preferred; $25,000 common. 
B) $5,000 preferred; $27,000 common. 
C) $15,000 preferred; $17,000 common. 
D) $32,000 preferred; $0 common. 
E) $0 preferred; $32,000 common. 
A) $7,000 preferred; $25,000 common. 
B) $5,000 preferred; $27,000 common. 
C) $15,000 preferred; $17,000 common. 
D) $32,000 preferred; $0 common. 
E) $0 preferred; $32,000 common.

Question 15

The number of shares a corporation's charter allows it to sell:

Accepted Answer

A) Issued. 
B) Authorized. 
C) Subscribed. 
D) Outstanding. 
E) In treasury. 
A) Issued. 
B) Authorized. 
C) Subscribed. 
D) Outstanding. 
E) In treasury.

Question 16

Stock that was reacquired and is still held by the issuing corporation is called:

Accepted Answer

A) Capital stock. 
B) Treasury stock. 
C) Redeemed stock. 
D) Preferred stock. 
E) Callable stock. 
A) Capital stock. 
B) Treasury stock. 
C) Redeemed stock. 
D) Preferred stock. 
E) Callable stock.

Question 17

________ are corrections of material errors in prior period financial statements.

Accepted Answer

Prior peri

Question 18

If a company has noncumulative preferred stock,basic earnings per share is equal to net income less preferred dividends declared divided by the number of weighted average common shares outstanding.

Accepted Answer

A) True 
 B)False

Question 19

A company had a beginning balance in retained earnings of $400,000.It had net income of $50,000 and declared and paid cash dividends of $55,000 in the current period.The ending balance in retained earnings equals:

Accepted Answer

A) $505,000. 
B) $405,000. 
C) $395,000. 
D) $455,000. 
E) $350,000. 
A) $505,000. 
B) $405,000. 
C) $395,000. 
D) $455,000. 
E) $350,000.

Question 20

Large stock dividends are recorded at par or stated value.

Accepted Answer

A) True 
 B)False

Exam 11: Corporate Reporting and Analysis

Dividend yield is defined as the annual cash dividends per share divided by the market price per share of a company's stock.

Stockholders' equity consists of paid-in capital and retained earnings.

Common Stock Dividend Distributable is a liability account.

Small stock dividends are recorded at par or stated value.

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.

Stock is attractive to investors because stockholders are not liable for the corporation's actions and debts and because stock is easily transferred.

The amount of income earned per share of a company's outstanding common stock is known as:

The statement of changes in stockholders' equity:

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding.The journal entry to record the payment of the cash dividend is:

________ is the amount of income earned per share of a company's outstanding common stock.

A corporation had the following stock outstanding when the company's board of directors declared a $75,000 cash dividend in the current year: Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

The number of shares that a corporation's charter allows it to sell is the ________ stock.

A corporation with $10 par common stock issues a large stock dividend.The capitalization of retained earnings is equal to:

The number of shares a corporation's charter allows it to sell:

Stock that was reacquired and is still held by the issuing corporation is called:

________ are corrections of material errors in prior period financial statements.

If a company has noncumulative preferred stock,basic earnings per share is equal to net income less preferred dividends declared divided by the number of weighted average common shares outstanding.

A company had a beginning balance in retained earnings of $400,000.It had net income of $50,000 and declared and paid cash dividends of $55,000 in the current period.The ending balance in retained earnings equals:

Large stock dividends are recorded at par or stated value.

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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