Question 1

Stock that has been issued and is held by stockholders is ________ stock.

Accepted Answer

The answer of Stock that has been issued and is...

Question 2

Dividend yield is the percent of cash dividends paid to common shareholders relative to the:

Accepted Answer

A)  Common stock's market value. 
B)  Earnings per share. 
C)  Investors' purchase price of the stock. 
D)  Amount of retained earnings. 
E)  Amount of cash. 
A)  Common stock's market value. 
B)  Earnings per share. 
C)  Investors' purchase price of the stock. 
D)  Amount of retained earnings. 
E)  Amount of cash.

Question 3

Declaration of a stock dividend results in a liability being recorded.

Accepted Answer

A) True 
 B)False

Question 4

Shareholders in a corporation have the power to bind the corporation to contracts.

Accepted Answer

A) True 
 B)False

Question 5

Lafferty Corporation reported earnings per share of $9.75,paid a $6.00 cash dividend per share to preferred shareholders,and paid a $0.54 cash dividend per share to common shareholders.There were 10,000 shares of preferred stock outstanding and 600,000 shares of common stock outstanding during the year,and the market price per share of common stock was $41.60.Calculate the company's dividend yield for common stock.

Accepted Answer

Dividend Yield = Cash Dividend

Question 6

The ________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

Accepted Answer

The answer of The ________ protects stockholders' proportional interest in...

Question 7

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

Accepted Answer

Price-Earnings Ratio = Market

Question 8

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 declaration 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 9

Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Accepted Answer

A) True 
 B)False

Question 10

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the dividend declaration is:

Accepted Answer

A)  Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. 
B)  Debit Common Dividends Payable $95,000; credit Cash $95,000. 
C)  Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000. 
D)  Debit Common Dividends Payable $90,000; credit Cash $90,000. 
E)  Debit Retained Earnings $95,000; credit Common Dividends Payable $95,000. 
A)  Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. 
B)  Debit Common Dividends Payable $95,000; credit Cash $95,000. 
C)  Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000. 
D)  Debit Common Dividends Payable $90,000; credit Cash $90,000. 
E)  Debit Retained Earnings $95,000; credit Common Dividends Payable $95,000.

Question 11

All of the following regarding accounting for Treasury Stock under U.S.GAAP and IFRS is true except:

Accepted Answer

A)  U. S. GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock. 
B)  Only gains are recognized on retirements of treasury stock under IFRS. 
C)  IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock. 
D)  Gains are not recognized on retirements of treasury stock under U. S. GAAP. 
E)  A company's assets and equity are always reduced by the amount paid for the retiring stock. 
A)  U. S. GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock. 
B)  Only gains are recognized on retirements of treasury stock under IFRS. 
C)  IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock. 
D)  Gains are not recognized on retirements of treasury stock under U. S. GAAP. 
E)  A company's assets and equity are always reduced by the amount paid for the retiring stock.

Question 12

Djarleen Company has 10,000 shares of $10 par preferred stock,which were issued at par.It also has 250,000 shares of common stock outstanding,and its total stockholders' equity equals $4,000,000.The book value per common share is:

Accepted Answer

A)  $16.67. 
B)  $16.00. 
C)  $40.00. 
D)  $15.60. 
E)  $10.00. 
A)  $16.67. 
B)  $16.00. 
C)  $40.00. 
D)  $15.60. 
E)  $10.00.

Question 13

On June 30,a company declared a cash dividend of $0.35 per common share to the shareholders of record on July 15.The cash dividend will be paid on July 31.This company has 500,000 shares authorized and 100,000 shares outstanding.Prepare the journal entries required on June 30,July 15 and July 31.

Accepted Answer

None

Question 14

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

Accepted Answer

The answer of The cumulative net income and loss not...

Question 15

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 16

All stock dividends are recorded at par value so there would never be a credit to the paid-in capital in excess of par value account.

Accepted Answer

A) True 
 B)False

Question 17

Comfort Mattresses,Inc.sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share.The entry to record this transaction would be:

Accepted Answer

A)  Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000. 
B)  Debit Cash for $312,000; credit Common Stock $312,000. 
C)  Debit Common Stock $26,000; debit Paid-in Capital in Excess of Par Value, Common Stock $286,000; credit Cash $312,000. 
D)  Debit Cash $312,000; credit Stock Liability $286,000; credit Common Stock $26,000. 
E)  Debit Common Stock $26,000; credit Cash $26,000. 
A)  Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000. 
B)  Debit Cash for $312,000; credit Common Stock $312,000. 
C)  Debit Common Stock $26,000; debit Paid-in Capital in Excess of Par Value, Common Stock $286,000; credit Cash $312,000. 
D)  Debit Cash $312,000; credit Stock Liability $286,000; credit Common Stock $26,000. 
E)  Debit Common Stock $26,000; credit Cash $26,000.

Question 18

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

Accepted Answer

A)  Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. 
B)  Debit Retained Earnings $750,000; credit Common Stock $750,000. 
C)  Debit Retained Earnings $250,000; credit Common Stock $250,000. 
D)  Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. 
E)  No entry is made for this transaction. 
A)  Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. 
B)  Debit Retained Earnings $750,000; credit Common Stock $750,000. 
C)  Debit Retained Earnings $250,000; credit Common Stock $250,000. 
D)  Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. 
E)  No entry is made for this transaction.

Question 19

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Accepted Answer

A)  $1.65. 
B)  $1.99. 
C)  $1.31. 
D)  $0.34. 
E)  $4.89. 
A)  $1.65. 
B)  $1.99. 
C)  $1.31. 
D)  $0.34. 
E)  $4.89.

Question 20

A company is authorized to issue 750,000 shares of $2 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
 $$\begin{array} { |l |l| } 
\hline \text { Jan. } 10 & \text { Sold } 102,000 \text { shares of common stock for } \$ 8 \text { cash per share. } \
\hline 15 & \text { Exchanged } 10,000 \text { shares of common stock for equipment with a market } \
&\text { value of } \$ 70,000\
\hline & \text { Exchanged } 500 \text { shares of common stock for } \$ 3,000 \text { of legal services incurred } \
\text { Feb. } 1&\text { during the company's organization. }\
\hline
\end{array}$$

Accepted Answer

None

Stock that has been issued and is held by stockholders is ________ stock.

Dividend yield is the percent of cash dividends paid to common shareholders relative to the:

Declaration of a stock dividend results in a liability being recorded.

Shareholders in a corporation have the power to bind the corporation to contracts.

The ________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

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 declaration of the cash dividend is:

Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the dividend declaration is:

All of the following regarding accounting for Treasury Stock under U.S.GAAP and IFRS is true except:

Djarleen Company has 10,000 shares of $10 par preferred stock,which were issued at par.It also has 250,000 shares of common stock outstanding,and its total stockholders' equity equals $4,000,000.The book value per common share is:

On June 30,a company declared a cash dividend of $0.35 per common share to the shareholders of record on July 15.The cash dividend will be paid on July 31.This company has 500,000 shares authorized and 100,000 shares outstanding.Prepare the journal entries required on June 30,July 15 and July 31.

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

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

All stock dividends are recorded at par value so there would never be a credit to the paid-in capital in excess of par value account.

Comfort Mattresses,Inc.sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share.The entry to record this transaction would be:

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

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

Stock that has been issued and is held by stockholders is ________ stock.

Dividend yield is the percent of cash dividends paid to common shareholders relative to the:

Declaration of a stock dividend results in a liability being recorded.

Shareholders in a corporation have the power to bind the corporation to contracts.

The ________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

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 declaration of the cash dividend is:

Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the dividend declaration is:

All of the following regarding accounting for Treasury Stock under U.S.GAAP and IFRS is true except:

Djarleen Company has 10,000 shares of $10 par preferred stock,which were issued at par.It also has 250,000 shares of common stock outstanding,and its total stockholders' equity equals $4,000,000.The book value per common share is:

On June 30,a company declared a cash dividend of $0.35 per common share to the shareholders of record on July 15.The cash dividend will be paid on July 31.This company has 500,000 shares authorized and 100,000 shares outstanding.Prepare the journal entries required on June 30,July 15 and July 31.

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

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

All stock dividends are recorded at par value so there would never be a credit to the paid-in capital in excess of par value account.

Comfort Mattresses,Inc.sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share.The entry to record this transaction would be:

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

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