Question 1

Corporations may choose to distribute stock dividends in order to:

Accepted Answer

A) increase the per-share market price of its stock. 
B) reduce the per-share market price of its stock. 
C) continue dividends but conserve cash. 
D) Both B and C are correct. 
A) increase the per-share market price of its stock. 
B) reduce the per-share market price of its stock. 
C) continue dividends but conserve cash. 
D) Both B and C are correct.

Question 2

Mr.Jorgensen,a shareholder in the Best Corporation,owns 2000 shares of its common stock.Mr.Jorgensen receives a 7% stock dividend.After the stock dividend,Mr.Jorgensen will have a:

Accepted Answer

A) total of 140 shares of Best Corporation's common stock. 
B) total of 1860 shares of Best Corporation's common stock. 
C) total of 2000 shares of Best Corporation's common stock. 
D) total of 2140 shares of Best Corporation's common stock. 
A) total of 140 shares of Best Corporation's common stock. 
B) total of 1860 shares of Best Corporation's common stock. 
C) total of 2000 shares of Best Corporation's common stock. 
D) total of 2140 shares of Best Corporation's common stock.

Question 3

The sale of treasury stock is reported as a cash inflow in the financing activities section of a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 4

When reporting stockholders' equity on the balance sheet,a corporation lists the accounts in the following order:

Accepted Answer

A) Retained Earnings,Preferred Stock,Common Stock. 
B) Common Stock,Preferred Stock,Additional Paid-in Capital,Retained Earnings. 
C) Preferred Stock,Common Stock,Additional Paid-in Capital,Retained Earnings. 
D) Retained Earnings,Common Stock,Paid-in Capital in Excess of Par-Common. 
A) Retained Earnings,Preferred Stock,Common Stock. 
B) Common Stock,Preferred Stock,Additional Paid-in Capital,Retained Earnings. 
C) Preferred Stock,Common Stock,Additional Paid-in Capital,Retained Earnings. 
D) Retained Earnings,Common Stock,Paid-in Capital in Excess of Par-Common.

Question 5

Sometimes companies supplement employee salaries by granting ________ rather than giving them cash.

Accepted Answer

A) dividends. 
B) a portion of retained earnings. 
C) a portion of paid-in capital. 
D) shares of stock. 
A) dividends. 
B) a portion of retained earnings. 
C) a portion of paid-in capital. 
D) shares of stock.

Question 6

A company never records gains or losses on transactions involving its own treasury stock.

Accepted Answer

A) True 
 B)False

Question 7

On December 31,Sulfur Corporation has the following data available:   What is the leverage ratio? (Round your final answer to two decimal places. )

Accepted Answer

A) 5.12 
B) 3.78 
C) 2.39 
D) 1.35 
A) 5.12 
B) 3.78 
C) 2.39 
D) 1.35

Question 8

Another name for Paid-in Capital in Excess of Par is Additional Paid-in Capital.

Accepted Answer

A) True 
 B)False

Question 9

Stockholders' equity is divided into:

Accepted Answer

A) retained earnings and paid-in capital. 
B) retained earnings and common stock. 
C) assets and liabilities. 
D) common stock and preferred stock. 
A) retained earnings and paid-in capital. 
B) retained earnings and common stock. 
C) assets and liabilities. 
D) common stock and preferred stock.

Question 10

On December 31,Sulfur Corporation has the following data available:
   Prepare the Stockholders' equity section of the balance sheet in real-world format (ignore the par value per share and number of shares).

Accepted Answer

The answer of On December 31,Sulfur Corporation has the following...

Question 11

The purchase of treasury stock is reported on the statement of cash flows as a:

Accepted Answer

A) positive amount in the financing activities section. 
B) negative amount in the financing activities section. 
C) positive amount in the investing activities section. 
D) negative amount in the investing activities section. 
A) positive amount in the financing activities section. 
B) negative amount in the financing activities section. 
C) positive amount in the investing activities section. 
D) negative amount in the investing activities section.

Question 12

A stock dividend is considered small when it is a dividend of:

Accepted Answer

A) less than 30% but greater than 25% of the corporation's outstanding stock. 
B) between 20% and 50% of the corporation's outstanding stock. 
C) more than 30% of the corporation's outstanding stock. 
D) 25% or less of the corporation's outstanding stock. 
A) less than 30% but greater than 25% of the corporation's outstanding stock. 
B) between 20% and 50% of the corporation's outstanding stock. 
C) more than 30% of the corporation's outstanding stock. 
D) 25% or less of the corporation's outstanding stock.

Question 13

If a company has a deficit in retained earnings:

Accepted Answer

A) then retained earnings has a credit balance. 
B) the deficit is subtracted to determine total stockholders' equity on the balance sheet. 
C) the deficit is added to determine total stockholders' equity on the balance sheet. 
D) then the corporation's lifetime earnings exceed lifetime losses and dividends. 
A) then retained earnings has a credit balance. 
B) the deficit is subtracted to determine total stockholders' equity on the balance sheet. 
C) the deficit is added to determine total stockholders' equity on the balance sheet. 
D) then the corporation's lifetime earnings exceed lifetime losses and dividends.

Question 14

A small stock dividend will:

Accepted Answer

A) reduce total assets. 
B) reduce total stockholders' equity. 
C) increase total stockholders' equity. 
D) have no effect on total assets or total stockholders' equity. 
A) reduce total assets. 
B) reduce total stockholders' equity. 
C) increase total stockholders' equity. 
D) have no effect on total assets or total stockholders' equity.

Question 15

The Vice President of Finance has the authority to declare a dividend.

Accepted Answer

A) True 
 B)False

Question 16

A corporation acts under its own name and not the name of its stockholders.

Accepted Answer

A) True 
 B)False

Question 17

Smith Corporation purchases 50,000 shares of its own $10 par value common stock for $60 per share.What will be the effect on stockholders' equity?

Accepted Answer

A) increase $500,000 
B) decrease $500,000 
C) increase $3,000,000 
D) decrease $3,000,000 
A) increase $500,000 
B) decrease $500,000 
C) increase $3,000,000 
D) decrease $3,000,000

Question 18

The authority to declare a dividend lies with the:

Accepted Answer

A) Chief Financial Officer. 
B) President of the company. 
C) Chief Executive Officer. 
D) Board of Directors. 
A) Chief Financial Officer. 
B) President of the company. 
C) Chief Executive Officer. 
D) Board of Directors.

Question 19

Wininger Corporation has 1000 shares of 6%,$50 par value,cumulative preferred stock and 25,000 shares of $1 par value common stock outstanding on December 31,2019 and December 31,2020.The board of directors declared and paid a $2,000 dividend in 2019.In 2020,$23,000 of dividends are declared and paid.What are the dividends received by the common stockholders in 2020 (there were no dividends in arrears prior to 2019)?

Accepted Answer

A) $3000 
B) $19,000 
C) $1000 
D) $23,000 
A) $3000 
B) $19,000 
C) $1000 
D) $23,000

Question 20

Williamson Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $60 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

Accepted Answer

A) Retained Earnings $800,000. 
B) Paid-in Capital in Excess of Par-Common $4,720,000. 
C) Common Stock $800,000. 
D) Retained Earnings $80,000. 
A) Retained Earnings $800,000. 
B) Paid-in Capital in Excess of Par-Common $4,720,000. 
C) Common Stock $800,000. 
D) Retained Earnings $80,000.

Corporations may choose to distribute stock dividends in order to:

Mr.Jorgensen,a shareholder in the Best Corporation,owns 2000 shares of its common stock.Mr.Jorgensen receives a 7% stock dividend.After the stock dividend,Mr.Jorgensen will have a:

The sale of treasury stock is reported as a cash inflow in the financing activities section of a statement of cash flows.

When reporting stockholders' equity on the balance sheet,a corporation lists the accounts in the following order:

Sometimes companies supplement employee salaries by granting ________ rather than giving them cash.

A company never records gains or losses on transactions involving its own treasury stock.

On December 31,Sulfur Corporation has the following data available: What is the leverage ratio? (Round your final answer to two decimal places. )

Another name for Paid-in Capital in Excess of Par is Additional Paid-in Capital.

Stockholders' equity is divided into:

On December 31,Sulfur Corporation has the following data available: Prepare the Stockholders' equity section of the balance sheet in real-world format (ignore the par value per share and number of shares).

The purchase of treasury stock is reported on the statement of cash flows as a:

A stock dividend is considered small when it is a dividend of:

If a company has a deficit in retained earnings:

A small stock dividend will:

The Vice President of Finance has the authority to declare a dividend.

A corporation acts under its own name and not the name of its stockholders.

Smith Corporation purchases 50,000 shares of its own $10 par value common stock for $60 per share.What will be the effect on stockholders' equity?

The authority to declare a dividend lies with the:

Williamson Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $60 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 10: Stockholders Equity

Corporations may choose to distribute stock dividends in order to:

Mr.Jorgensen,a shareholder in the Best Corporation,owns 2000 shares of its common stock.Mr.Jorgensen receives a 7% stock dividend.After the stock dividend,Mr.Jorgensen will have a:

The sale of treasury stock is reported as a cash inflow in the financing activities section of a statement of cash flows.

When reporting stockholders' equity on the balance sheet,a corporation lists the accounts in the following order:

Sometimes companies supplement employee salaries by granting ________ rather than giving them cash.

A company never records gains or losses on transactions involving its own treasury stock.

On December 31,Sulfur Corporation has the following data available: What is the leverage ratio? (Round your final answer to two decimal places. )

Another name for Paid-in Capital in Excess of Par is Additional Paid-in Capital.

Stockholders' equity is divided into:

On December 31,Sulfur Corporation has the following data available: Prepare the Stockholders' equity section of the balance sheet in real-world format (ignore the par value per share and number of shares).

The purchase of treasury stock is reported on the statement of cash flows as a:

A stock dividend is considered small when it is a dividend of:

If a company has a deficit in retained earnings:

A small stock dividend will:

The Vice President of Finance has the authority to declare a dividend.

A corporation acts under its own name and not the name of its stockholders.

Smith Corporation purchases 50,000 shares of its own $10 par value common stock for $60 per share.What will be the effect on stockholders' equity?

The authority to declare a dividend lies with the:

Williamson Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $60 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters