Question 1

The liability for a dividend is recorded on which of the following dates?

Accepted Answer

A)  the date of record 
B)  the date of payment 
C)  the last day of the fiscal year 
D)  the date of declaration 
A)  the date of record 
B)  the date of payment 
C)  the last day of the fiscal year 
D)  the date of declaration

Question 2

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

Accepted Answer

A) True 
 B)False

Question 3

Cash dividends become a liability to a corporation on the date of record.

Accepted Answer

A) True 
 B)False

Question 4

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

Accepted Answer

The answer of The dates of importance in connection with...

Question 5

Match the following stockholders' equity concepts to the appropriate term (a-h).​
-The day of the event that creates a liability to company

Accepted Answer

A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par
   
A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par

Question 6

Treasury stock should be reported in the financial statements of a corporation as a(n)

Accepted Answer

A)  investment 
B)  liability 
C)  current asset 
D)  deduction from stockholders' equity 
A)  investment 
B)  liability 
C)  current asset 
D)  deduction from stockholders' equity

Question 7

Which statement below is not a reason for a corporation to buy back its own stock?

Accepted Answer

A)  resale to employees 
B)  bonus to employees 
C)  for supporting the market price of the stock 
D)  to increase the shares outstanding 
A)  resale to employees 
B)  bonus to employees 
C)  for supporting the market price of the stock 
D)  to increase the shares outstanding

Question 8

The par value of stock is an assigned per share amount defined in many states as legal capital.

Accepted Answer

A) True 
 B)False

Question 9

Characteristics of a corporation include

Accepted Answer

A)  a limited lifespan 
B)  direct management by the shareholders (owners) 
C)  its inability to own property 
D)  shareholders who have limited liability 
A)  a limited lifespan 
B)  direct management by the shareholders (owners) 
C)  its inability to own property 
D)  shareholders who have limited liability

Question 10

Match the following stockholders' equity concepts to the appropriate term (a-h).​
-Equity account reflecting shares "owed" to stockholders

Accepted Answer

A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par
   
A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par

Question 11

The initial stockholders of a newly formed corporation are called directors.

Accepted Answer

A) True 
 B)False

Question 12

Journalize the following selected transactions completed during the current fiscal year:

Accepted Answer

The answer of Journalize the following selected transactions completed during...

Question 13

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Accepted Answer

A)  ​$80,000 
B)  ​$10,000 
C)  ​$90,000 
D)  ​$100,00 
A)  ​$80,000 
B)  ​$10,000 
C)  ​$90,000 
D)  ​$100,00

Question 14

Match the following stockholders' equity concepts to the appropriate term (a-h).​
-Owners of this class of stock are entitled to receive dividends first

Accepted Answer

A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par
   
A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par

Question 15

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock.The stock is widely traded and sold for $15 per share.At what amount should the building be recorded by Kansas Company?

Accepted Answer

A)  $60,000 
B)  $180,000 
C)  $210,000 
D)  $120,000 
A)  $60,000 
B)  $180,000 
C)  $210,000 
D)  $120,000

Question 16

The excess of sales price of treasury stock over its cost should be credited to

Accepted Answer

A)  Treasury Stock Receivable 
B)  Premium on Capital Stock 
C)  Paid-In Capital from Sale of Treasury Stock 
D)  Income from Sale of Treasury Stock 
A)  Treasury Stock Receivable 
B)  Premium on Capital Stock 
C)  Paid-In Capital from Sale of Treasury Stock 
D)  Income from Sale of Treasury Stock

Question 17

A restriction / appropriation of retained earnings

Accepted Answer

A)  decreases total assets 
B)  increases total retained earnings 
C)  decreases total retained earnings 
D)  has no effect on total retained earnings 
A)  decreases total assets 
B)  increases total retained earnings 
C)  decreases total retained earnings 
D)  has no effect on total retained earnings

Question 18

Which of the following is not classified as paid-in capital on the balance sheet?

Accepted Answer

A)  common stock 
B)  common stock distributable 
C)  excess of issue price over par 
D)  treasury stock 
A)  common stock 
B)  common stock distributable 
C)  excess of issue price over par 
D)  treasury stock

Question 19

Which of the following is not a prerequisite to paying a cash dividend?

Accepted Answer

A)  formal action by the board of directors 
B)  market value in excess of par value per share 
C)  sufficient cash 
D)  sufficient retained earnings 
A)  formal action by the board of directors 
B)  market value in excess of par value per share 
C)  sufficient cash 
D)  sufficient retained earnings

Question 20

If common stock is issued for an amount greater than par value,the excess should be credited to

Accepted Answer

A)  Retained Earnings 
B)  Cash 
C)  Legal Capital 
D)  Paid-In Capital in Excess of Par 
A)  Retained Earnings 
B)  Cash 
C)  Legal Capital 
D)  Paid-In Capital in Excess of Par

Exam 12: Corporations: Organization, stock Transactions, and Dividends

The liability for a dividend is recorded on which of the following dates?

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

Cash dividends become a liability to a corporation on the date of record.

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -The day of the event that creates a liability to company

Treasury stock should be reported in the financial statements of a corporation as a(n)

Which statement below is not a reason for a corporation to buy back its own stock?

The par value of stock is an assigned per share amount defined in many states as legal capital.

Characteristics of a corporation include

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Equity account reflecting shares "owed" to stockholders

The initial stockholders of a newly formed corporation are called directors.

Journalize the following selected transactions completed during the current fiscal year:

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Owners of this class of stock are entitled to receive dividends first

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock.The stock is widely traded and sold for $15 per share.At what amount should the building be recorded by Kansas Company?

The excess of sales price of treasury stock over its cost should be credited to

A restriction / appropriation of retained earnings

Which of the following is not classified as paid-in capital on the balance sheet?

Which of the following is not a prerequisite to paying a cash dividend?

If common stock is issued for an amount greater than par value,the excess should be credited to

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Match the following stockholders' equity concepts to the appropriate term (a-h). -The day of the event that creates a liability to company

Match the following stockholders' equity concepts to the appropriate term (a-h). -Equity account reflecting shares "owed" to stockholders

Match the following stockholders' equity concepts to the appropriate term (a-h). -Owners of this class of stock are entitled to receive dividends first