Question 1

The price-earnings ratio is calculated by dividing:

Accepted Answer

A)  Market value per share by earnings per share. 
B)  Earnings per share by market value per share. 
C)  Dividends per share by earnings per share. 
D)  Dividends per share by market value per share. 
E)  Market value per share by dividends per share. 
A)  Market value per share by earnings per share. 
B)  Earnings per share by market value per share. 
C)  Dividends per share by earnings per share. 
D)  Dividends per share by market value per share. 
E)  Market value per share by dividends per share.

Question 2

Book value per share:

Accepted Answer

A)  Reflects the value per share if a company is liquidated at balance sheet amounts. 
B)  Is assets divided by equity. 
C)  Is assets divided by the number of common shares outstanding. 
D)  Measures the worth of assets. 
E)  Is equal to par value per share. 
A)  Reflects the value per share if a company is liquidated at balance sheet amounts. 
B)  Is assets divided by equity. 
C)  Is assets divided by the number of common shares outstanding. 
D)  Measures the worth of assets. 
E)  Is equal to par value per share.

Question 3

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 4

Hutter Corporation declared a $0.50 per share cash dividend on its common shares.The company has 20,000 shares authorized,9,000 shares issued,and 8,000 shares of common stock outstanding.
-The journal entry to record the dividend payment is:

Accepted Answer

A)  Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000. 
B)  Debit Common Dividends Payable $4,000; credit Cash $4,000. 
C)  Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500. 
D)  Debit Common Dividends Payable $4,500; credit Cash $4,500. 
E)  Debit Retained Earnings $10,000; credit Common Dividends Payable $10,000. 
A)  Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000. 
B)  Debit Common Dividends Payable $4,000; credit Cash $4,000. 
C)  Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500. 
D)  Debit Common Dividends Payable $4,500; credit Cash $4,500. 
E)  Debit Retained Earnings $10,000; credit Common Dividends Payable $10,000.

Question 5

Common Stock Dividend Distributable is an equity account.

Accepted Answer

A) True 
 B)False

Question 6

Changes in retained earnings are commonly reported in the:

Accepted Answer

A)  Statement of cash flows. 
B)  Balance sheet. 
C)  Statement of stockholders' equity. 
D)  Multiple-step income statement. 
E)  Single-step income statement. 
A)  Statement of cash flows. 
B)  Balance sheet. 
C)  Statement of stockholders' equity. 
D)  Multiple-step income statement. 
E)  Single-step income statement.

Question 7

Prior to May 1,Fortune Company has never had any treasury stock transactions.A company repurchased 100 shares of its common stock on May 1 for $5,000.On July 1,it reissued 50 of these shares at $52 per share.On August 1,it reissued the remaining treasury shares at $49 per share.What is the balance in the Paid-in Capital,Treasury Stock account on August 2?

Accepted Answer

A)  $5,050. 
B)  $2,600. 
C)  $100. 
D)  $50. 
E)  $0. 
A)  $5,050. 
B)  $2,600. 
C)  $100. 
D)  $50. 
E)  $0.

Question 8

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

Accepted Answer

A)  Financial leverage. 
B)  Discount on stock. 
C)  Premium on stock. 
D)  Preemptive right. 
E)  Capital gain. 
A)  Financial leverage. 
B)  Discount on stock. 
C)  Premium on stock. 
D)  Preemptive right. 
E)  Capital gain.

Question 9

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share.The entry to record this transaction would include:

Accepted Answer

A)  A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000. 
B)  A debit to Cash for $14,000. 
C)  A credit to Common Stock for $182,000. 
D)  A credit to Common Stock for $14,000. 
E)  A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000. 
A)  A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000. 
B)  A debit to Cash for $14,000. 
C)  A credit to Common Stock for $182,000. 
D)  A credit to Common Stock for $14,000. 
E)  A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000.

Question 10

A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share.The entry to record this transaction would be:

Accepted Answer

A)  Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000. 
B)  Debit Cash $27,500; credit Common Stock $27,500. 
C)  Debit Common Stock $27,500; credit Cash $27,500. 
D)  Debit Treasury Stock $27,500; credit Cash $27,500. 
E)  Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500. 
A)  Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000. 
B)  Debit Cash $27,500; credit Common Stock $27,500. 
C)  Debit Common Stock $27,500; credit Cash $27,500. 
D)  Debit Treasury Stock $27,500; credit Cash $27,500. 
E)  Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.

Question 11

A corporation with $10 par common stock issues a small 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 small 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 small stock dividend.

Question 12

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

Accepted Answer

Dividend yield is the ratio of annual ca

Question 13

________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

Accepted Answer

The answer of ________ is a general term that refers...

Question 14

The group responsible for and have final authority for managing a corporation's activities is (are)the ________.

Accepted Answer

board of d

Question 15

Dynasty Corporation had stockholders' equity on January 1 as follows: Common Stock,$5 par value,1,000,000 shares authorized,400,000 shares issued; Paid-in Capital in Excess of Par Value,Common Stock,$800,000; Retained Earnings,$3,600,000.Prepare journal entries to record the following transactions:
 $$\begin{array} { | l | l | } 
\hline \text { Feb. 15 } & \begin{array} { l } 
\text { The board of directors declared a 5\% stock dividend to } \
\text { stockholders of record on }
\end{array} \
\hline & \begin{array} { l } 
\text { March 1, to be issued on March 20. The stock was trading at \$7 } \
\text { per share prior to the dividend }
\end{array} \
\hline\
\hline \text { Mar. 1 } & \text { The date of record. } \
\hline  \ 
\hline \text { Mar. 20 } & \text { Issued the stock dividend. } \
\hline
\end{array}$$

Accepted Answer

The answer of Dynasty Corporation had stockholders' equity on January...

Question 16

A corporation may not legally give shares of its stock to promoters in exchange for their services in organizing the corporation.

Accepted Answer

A) True 
 B)False

Question 17

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.
 $$\begin{array} { |l | r| } 
\hline \text { Retained earnings, January 1 } & \$ 342,000 \
\hline \text { Cash dividends } & \$ 51,700 \
\hline \text { Stock dividends } & \$ 40,000 \
\hline \text { Net income } & \$ 141,000 \
\hline
\end{array}$$

Accepted Answer

Retained Earnings = $391,300
Supporting

Question 18

Treasury stock is stock that has been authorized,issued,and is 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 paid out 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

Which of the following is true of a stock dividend?

Accepted Answer

A)  It is a liability on the balance sheet. 
B)  The decision to declare a stock dividend resides with the shareholders. 
C)  Transfers a portion of equity from retained earnings to a cash reserve account. 
D)  Does not affect total equity, but transfer amounts between the components of equity. 
E)  Reduces a corporation's assets and stockholders' equity. 
A)  It is a liability on the balance sheet. 
B)  The decision to declare a stock dividend resides with the shareholders. 
C)  Transfers a portion of equity from retained earnings to a cash reserve account. 
D)  Does not affect total equity, but transfer amounts between the components of equity. 
E)  Reduces a corporation's assets and stockholders' equity.

The price-earnings ratio is calculated by dividing:

Book value per share:

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 ________.

Hutter Corporation declared a $0.50 per share cash dividend on its common shares.The company has 20,000 shares authorized,9,000 shares issued,and 8,000 shares of common stock outstanding. -The journal entry to record the dividend payment is:

Common Stock Dividend Distributable is an equity account.

Changes in retained earnings are commonly reported in the:

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share.The entry to record this transaction would include:

A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share.The entry to record this transaction would be:

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

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

The group responsible for and have final authority for managing a corporation's activities is (are)the ________.

A corporation may not legally give shares of its stock to promoters in exchange for their services in organizing the corporation.

Given the following information about a corporation's current year activities,compute the retained earnings for the current year. Retained earnings, January 1 \ 342,000 Cash dividends \ 51,700 Stock dividends \ 40,000 Net income \ 141,000

Treasury stock is stock that has been authorized,issued,and is outstanding.

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

Which of the following is true of a stock dividend?

Accounting in Business

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters

Exam 11: Corporate Reporting and Analysis

The price-earnings ratio is calculated by dividing:

Book value per share:

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 ________.

Hutter Corporation declared a $0.50 per share cash dividend on its common shares.The company has 20,000 shares authorized,9,000 shares issued,and 8,000 shares of common stock outstanding. -The journal entry to record the dividend payment is:

Common Stock Dividend Distributable is an equity account.

Changes in retained earnings are commonly reported in the:

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share.The entry to record this transaction would include:

A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share.The entry to record this transaction would be:

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

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

The group responsible for and have final authority for managing a corporation's activities is (are)the ________.

A corporation may not legally give shares of its stock to promoters in exchange for their services in organizing the corporation.

Given the following information about a corporation's current year activities,compute the retained earnings for the current year. Retained earnings, January 1 \ 342,000 Cash dividends \ 51,700 Stock dividends \ 40,000 Net income \ 141,000

Treasury stock is stock that has been authorized,issued,and is outstanding.

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

Which of the following is true of a stock dividend?

Accounting in Business

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters