Question 1

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 2

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:

Accepted Answer

A)  Preemptive right. 
B)  Proxy right. 
C)  Right to call. 
D)  Financial leverage. 
E)  Voting right. 
A)  Preemptive right. 
B)  Proxy right. 
C)  Right to call. 
D)  Financial leverage. 
E)  Voting right.

Question 3

The amount assigned per share to stock by the corporation in its charter is the ________.

Accepted Answer

The answer of The amount assigned per share to stock...

Question 4

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter are called:

Accepted Answer

A)  Minimum legal capital. 
B)  Stock subscriptions. 
C)  Organization expenses. 
D)  Selling expenses. 
E)  Prepaid fees. 
A)  Minimum legal capital. 
B)  Stock subscriptions. 
C)  Organization expenses. 
D)  Selling expenses. 
E)  Prepaid fees.

Question 5

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.
$$\begin{array} { c c r } 
& \text { Dividend Declared } \
\text { year 1 } & \$ 20,000 \
\text { year 2 } & \$ 6,000 \
\text { year 3 } & \$ 32,000
\end{array}$$
The amount of dividends paid to preferred and common shareholders in year 1 is:

Accepted Answer

A)  $200 preferred; $19,800 common. 
B)  $4,000 preferred; $16,000 common. 
C)  $17,000 preferred; $3,000 common. 
D)  $10,000 preferred; $10,000 common. 
E)  $20,000 preferred; $0 common. 
A)  $200 preferred; $19,800 common. 
B)  $4,000 preferred; $16,000 common. 
C)  $17,000 preferred; $3,000 common. 
D)  $10,000 preferred; $10,000 common. 
E)  $20,000 preferred; $0 common.

Question 6

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 7

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

Accepted Answer

A) True 
 B)False

Question 8

A liquidating dividend is:

Accepted Answer

A)  Only declared when a corporation closes down. 
B)  A return of a portion of the original investment 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 original investment 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 9

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 payment of the dividend 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 10

The price at which a share of stock is bought or sold is known as par value.

Accepted Answer

A) True 
 B)False

Question 11

The following data has been collected about Keller Company's stockholders' equity accounts:
$\begin{array}{ll}
\text {Common stock $ \$ 10 $ par value 20,000 shares }&\$100,000\
\text {authorized and 10,000 shares issued, 9,000 shares outstanding}\
\text { Paid-in capital in excess of par value, common stock } & 50,000 \
\text { Retained earnings } & 25,000 \
\text { Treasury stock } & 11,500
\end{array}$

-
Assuming the treasury shares were all purchased at the same price,the cost per share of the treasury stock is:

Accepted Answer

A)  $1.15. 
B)  $1.28. 
C)  $11.50. 
D)  $10.50. 
E)  $10.00. 
A)  $1.15. 
B)  $1.28. 
C)  $11.50. 
D)  $10.50. 
E)  $10.00.

Question 12

Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average)common stock.

Accepted Answer

A) True 
 B)False

Question 13

Growth stocks generally pay large dividends on a regular basis.

Accepted Answer

A) True 
 B)False

Question 14

Explain how to compute book value per common share and discuss how it can be used to analyze the financial condition of a corporation.

Accepted Answer

Book value per common share is calculate

Question 15

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.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 16

________ 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 17

Given the following information about a corporation's current year activities,compute the retained earnings for the current year.
 $$\begin{array} { | l | r | } 
\hline \text { Retained earnings, December 31 (prior year) } & \$ 280,000 \
\hline \text { Cost of goods sold } & \$ 90,000 \
\hline \text { Other operating expenses } & \$ 54,000 \
\hline \text { Cash dividends } & \$ 31,800 \
\hline \text { Correction of understatement of net income in prior } & \
\hline \text { period (inventory error) } & \$ 23,000 \
\hline \text { Stock dividends } & \$ 20,000 \
\hline \text { Net income } & \$ 36,000 \
\hline
\end{array}$$

Accepted Answer

Retained Earnings = $287,200
Supporting

Question 18

Sweet Company's outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends.
$$\begin{array} { c c r } 
& \text { Dividend Declared } \
\text { year 1 } & \$ 2,000 \
\text { year 2 } & \$ 6,000 \
\text { year 3 } & \$ 32,000
\end{array}$$

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 19

A company made an error in recording the Year 1 purchase of computer equipment as an expense.This was discovered in Year 2.The item should be reported as a prior period adjustment on the Year 2 income statement.

Accepted Answer

A) True 
 B)False

Question 20

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 declaration 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.

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

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:

The amount assigned per share to stock by the corporation in its charter is the ________.

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter are called:

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

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

A liquidating dividend is:

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 payment of the dividend is:

The price at which a share of stock is bought or sold is known as par value.

Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average)common stock.

Growth stocks generally pay large dividends on a regular basis.

Explain how to compute book value per common share and discuss how it can be used to analyze the financial condition of a corporation.

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.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:

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

A company made an error in recording the Year 1 purchase of computer equipment as an expense.This was discovered in Year 2.The item should be reported as a prior period adjustment on the Year 2 income statement.

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 declaration 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

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

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:

The amount assigned per share to stock by the corporation in its charter is the ________.

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter are called:

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

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

A liquidating dividend is:

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 payment of the dividend is:

The price at which a share of stock is bought or sold is known as par value.

Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average)common stock.

Growth stocks generally pay large dividends on a regular basis.

Explain how to compute book value per common share and discuss how it can be used to analyze the financial condition of a corporation.

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.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:

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

A company made an error in recording the Year 1 purchase of computer equipment as an expense.This was discovered in Year 2.The item should be reported as a prior period adjustment on the Year 2 income statement.

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 declaration 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