Question 1

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

Accepted Answer

Prior peri

Question 2

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 3

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 4

A stock split increases total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 5

Companies report prior period adjustments,net of any income tax effects in the:

Accepted Answer

A)  Statement of cash flows. 
B)  Balance sheet. 
C)  Statement of retained earnings. 
D)  Income statement. 
E)  No disclosure is required. 
A)  Statement of cash flows. 
B)  Balance sheet. 
C)  Statement of retained earnings. 
D)  Income statement. 
E)  No disclosure is required.

Question 6

Cumulative preferred stock has a right to be paid both current and prior periods' unpaid dividends before any dividend is paid to common shareholders.

Accepted Answer

A) True 
 B)False

Question 7

A corporation is responsible for its own acts and debts because it is considered a ________.

Accepted Answer

separate l

Question 8

A company has earnings per share of $9.60.Its dividend per share is $0.50,its market price per share is $110,and its book value per share is $96.Its price-earnings ratio equals:

Accepted Answer

A)  1.15. 
B)  0.87. 
C)  19.2. 
D)  10.0. 
E)  11.46. 
A)  1.15. 
B)  0.87. 
C)  19.2. 
D)  10.0. 
E)  11.46.

Question 9

A company reported $960,000 in net income for the current year.Total weighted-average common shares outstanding are 150,000 shares,and the year-end market price is $67.20 per common share.Calculate the company's price earnings ratio.

Accepted Answer

Price-Earnings Ratio = Market

Question 10

A company reported the following stockholders' equity on January 1 of the current year:
 $$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Common stock, } \$ 10 \text { par, } 1,000,000 \text { shares } \
\text { authorized, } 250,000 \text { shares issued } \ldots \ldots \ldots \ldots \ldots \ldots \ldots
\end{array} & \$ 2,500,000 \
\hline \text { Paid-in capital in excess of par, common } \ldots \ldots \ldots \ldots \ldots \ldots & 1,260,000 \
\hline \text { Retained earnings } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 1,675,000 \
\hline \text { Total stockholders' equity } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & \$ 5,435,000 \
\hline
\end{array}$$ 
Prepare journal entries for the following selected transactions related to this company's stock during the current year:
 $$\begin{array} { | l r | l | } 
\hline \text { Mar. } & 1 & \text { Purchased } 10,000 \text { shares of treasury stock for } \$ 18 \text { per share. } \
\hline \text { May } & 5 & \text { Sold } 4,000 \text { shares of treasury stock for } \$ 16 \text { per share. } \
\hline \text { Oct. } & 12 & \text { Sold } 2,000 \text { shares of treasury stock for } \$ 19 \text { per share. } \
\hline
\end{array}$$

Accepted Answer

The answer of A company reported the following stockholders' equity...

Question 11

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include:

Accepted Answer

A)  A debit to Common Stock for $12,000. 
B)  A debit to Land for $12,000. 
C)  A credit to Land for $12,000. 
D)  A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000. 
E)  A credit to Common Stock for $84,000. 
A)  A debit to Common Stock for $12,000. 
B)  A debit to Land for $12,000. 
C)  A credit to Land for $12,000. 
D)  A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000. 
E)  A credit to Common Stock for $84,000.

Question 12

Prior period adjustments to financial statements can result from:

Accepted Answer

A)  Changes in accounting estimates. 
B)  Unacceptable accounting practices. 
C)  Discontinued operations. 
D)  Changes in tax law. 
E)  Extraordinary items. 
A)  Changes in accounting estimates. 
B)  Unacceptable accounting practices. 
C)  Discontinued operations. 
D)  Changes in tax law. 
E)  Extraordinary items.

Question 13

A stock dividend decreases the market price of the company's stock.

Accepted Answer

A) True 
 B)False

Question 14

The Paid-in Capital,Treasury Stock account can have a zero or credit balance.

Accepted Answer

A) True 
 B)False

Question 15

A company issued 70 shares of $30 par value preferred stock for $4,000 cash.The journal entry to record the issuance is:

Accepted Answer

A)  Debit Cash $2,100; credit Preferred Stock $2,100. 
B)  Debit Investment in Preferred Stock $2,100; credit Cash $2,100. 
C)  Debit Cash $4,000; credit Preferred Stock $4,000. 
D)  Debit Preferred Stock $2,100, debit Investment in Preferred Stock $1,900; credit Cash $4,000. 
E)  Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100. 
A)  Debit Cash $2,100; credit Preferred Stock $2,100. 
B)  Debit Investment in Preferred Stock $2,100; credit Cash $2,100. 
C)  Debit Cash $4,000; credit Preferred Stock $4,000. 
D)  Debit Preferred Stock $2,100, debit Investment in Preferred Stock $1,900; credit Cash $4,000. 
E)  Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

Question 16

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 17

Prior to June 30,a company has never had any treasury stock transactions.A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share.On July 20,it reissued 50 of these shares at $46 per share.On August 1,it reissued 20 of the shares at $38 per share.What is the journal entry necessary to record the repurchase of stock on June 30?

Accepted Answer

A)  Debit Common Stock $4,000; credit Cash $4,000. 
B)  Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000. 
C)  Debit Treasury Stock $3,900; debit Paid-in Capital, Treasury Stock $100; credit Cash $4,000. 
D)  Debit Treasury Stock, Common $4,000; credit Cash $4,000. 
E)  Debit Cash $4,000; credit Treasury Stock $4,000. 
A)  Debit Common Stock $4,000; credit Cash $4,000. 
B)  Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000. 
C)  Debit Treasury Stock $3,900; debit Paid-in Capital, Treasury Stock $100; credit Cash $4,000. 
D)  Debit Treasury Stock, Common $4,000; credit Cash $4,000. 
E)  Debit Cash $4,000; credit Treasury Stock $4,000.

Question 18

On September 20,Fletcher Corporation issued 25,000 shares of no-par common stock for equipment having a market value of $85,000.Prepare the general journal entry to record this transaction.

Accepted Answer

\[\begin{array} { | l | l | l

Question 19

What is treasury stock? What reasons might a company hold treasury stock?

Accepted Answer

Treasury stock is the company's own issu

Question 20

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Accepted Answer

A) True 
 B)False

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

Stated value of no-par stock is:

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

A stock split increases total stockholders' equity.

Companies report prior period adjustments,net of any income tax effects in the:

Cumulative preferred stock has a right to be paid both current and prior periods' unpaid dividends before any dividend is paid to common shareholders.

A corporation is responsible for its own acts and debts because it is considered a ________.

A company has earnings per share of $9.60.Its dividend per share is $0.50,its market price per share is $110,and its book value per share is $96.Its price-earnings ratio equals:

A company reported $960,000 in net income for the current year.Total weighted-average common shares outstanding are 150,000 shares,and the year-end market price is $67.20 per common share.Calculate the company's price earnings ratio.

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include:

Prior period adjustments to financial statements can result from:

A stock dividend decreases the market price of the company's stock.

The Paid-in Capital,Treasury Stock account can have a zero or credit balance.

A company issued 70 shares of $30 par value preferred stock for $4,000 cash.The journal entry to record the issuance is:

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.

On September 20,Fletcher Corporation issued 25,000 shares of no-par common stock for equipment having a market value of $85,000.Prepare the general journal entry to record this transaction.

What is treasury stock? What reasons might a company hold treasury stock?

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

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

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

Stated value of no-par stock is:

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

A stock split increases total stockholders' equity.

Companies report prior period adjustments,net of any income tax effects in the:

Cumulative preferred stock has a right to be paid both current and prior periods' unpaid dividends before any dividend is paid to common shareholders.

A corporation is responsible for its own acts and debts because it is considered a ________.

A company has earnings per share of $9.60.Its dividend per share is $0.50,its market price per share is $110,and its book value per share is $96.Its price-earnings ratio equals:

A company reported $960,000 in net income for the current year.Total weighted-average common shares outstanding are 150,000 shares,and the year-end market price is $67.20 per common share.Calculate the company's price earnings ratio.

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include:

Prior period adjustments to financial statements can result from:

A stock dividend decreases the market price of the company's stock.

The Paid-in Capital,Treasury Stock account can have a zero or credit balance.

A company issued 70 shares of $30 par value preferred stock for $4,000 cash.The journal entry to record the issuance is:

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.

On September 20,Fletcher Corporation issued 25,000 shares of no-par common stock for equipment having a market value of $85,000.Prepare the general journal entry to record this transaction.

What is treasury stock? What reasons might a company hold treasury stock?

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

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