Question 1

The price-earnings ratio is the same amount as the market value per share.

Accepted Answer

A) True 
 B)False

Question 2

The Statement of Stockholders' Equity does NOT include:

Accepted Answer

A) Retained Earnings. 
B) Accumulated Other Comprehensive Income. 
C) Treasury Stock. 
D) Equity-Method Investments. 
A) Retained Earnings. 
B) Accumulated Other Comprehensive Income. 
C) Treasury Stock. 
D) Equity-Method Investments.

Question 3

The chronological order of dates for cash dividends are:

Accepted Answer

A) date of record,date of declaration,date of payment. 
B) date of annual Board of Directors meeting,date of payment,date of record,date of declaration. 
C) date of annual Board of Directors meeting,date of record,date of declaration,date of payment. 
D) date of declaration,date of record,date of payment. 
A) date of record,date of declaration,date of payment. 
B) date of annual Board of Directors meeting,date of payment,date of record,date of declaration. 
C) date of annual Board of Directors meeting,date of record,date of declaration,date of payment. 
D) date of declaration,date of record,date of payment.

Question 4

Only stockholders holding stock on the record date will receive a dividend.

Accepted Answer

A) True 
 B)False

Question 5

Convertible preferred stock is usually convertible into the issuer's common stock at the discretion of the preferred stockholder.

Accepted Answer

A) True 
 B)False

Question 6

During the first year of operations,New York Corporation had the following transactions:
   Required:
Prepare the journal entries for the above transactions.Omit explanations.

Accepted Answer

The answer of During the first year of operations,New York...

Question 7

The purchase of treasury stock is reported on the statement of cash flows as a financing activity.

Accepted Answer

A) True 
 B)False

Question 8

Corporations may either sell stock directly to the stockholders or use the service of an underwriter.

Accepted Answer

A) True 
 B)False

Question 9

The payment of dividends will be reported on the statement of cash flows as a:

Accepted Answer

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

Question 10

The date on which a cash dividend becomes a legal obligation is the:

Accepted Answer

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

Question 11

Bryant Corporation issued 10,000 new shares of its $5 par common stock in conjunction with an employee stock compensation plan.On the date of issuance,the market value of the stock was $50 per share.
Prepare the journal entry to record this transaction.Omit explanations.

Accepted Answer

@#IMG-DLM& Compensation expense: 10,000

Question 12

Treasury stock accounts for the difference between the number of:

Accepted Answer

A) issued shares and authorized shares. 
B) issued shares and preferred shares. 
C) outstanding shares and issued shares. 
D) authorized shares and outstanding shares. 
A) issued shares and authorized shares. 
B) issued shares and preferred shares. 
C) outstanding shares and issued shares. 
D) authorized shares and outstanding shares.

Question 13

For cash dividends,no journal entry is made on the date of record.

Accepted Answer

A) True 
 B)False

Question 14

Corrao Foods Corporation has 5000 shares of 7%,$15 par value,cumulative preferred stock and 150,000 shares of $1 par value common stock outstanding at December 31,2019 and December 31,2020.In 2019,a $2000 dividend was declared and paid.In 2020,$33,000 of dividends are declared and paid.What are the dividends received by the preferred stockholders in 2020 (assuming no dividends in arrears prior to 2019)?

Accepted Answer

A) $33,000 
B) $5250 
C) $8500 
D) $10,500 
A) $33,000 
B) $5250 
C) $8500 
D) $10,500

Question 15

The Retained Earnings account contains cash for paying dividends to the stockholders.

Accepted Answer

A) True 
 B)False

Question 16

The issuance of common stock in exchange for cash will be reported in:

Accepted Answer

A) the noncash financing section of the statement of cash flows. 
B) the operating activities section of the statement of cash flows. 
C) the investing activities section of the statement of cash flows. 
D) the financing activities section of the statement of cash flows. 
A) the noncash financing section of the statement of cash flows. 
B) the operating activities section of the statement of cash flows. 
C) the investing activities section of the statement of cash flows. 
D) the financing activities section of the statement of cash flows.

Question 17

Treasury stock is reported in the stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

The chairperson of the board of directors often has the title of:

Accepted Answer

A) Chief Financial Officer (CFO). 
B) President. 
C) Chief Executive Officer (CEO). 
D) Chief Operating Officer (COO). 
A) Chief Financial Officer (CFO). 
B) President. 
C) Chief Executive Officer (CEO). 
D) Chief Operating Officer (COO).

Question 19

The Good Word Store reported the following figures: Retained Earnings,January 31,2019.........................$39,000,000
Retained Earnings,January 31,2020.........................$22,000,000
Total Stockholders' Equity,January 31,2019...........$30,000,000
Total Stockholders' Equity,January 31,2020...........$26,000,000
The company's fiscal year ends on January 31 each year.Dividends declared for the fiscal year ending January 31,2020 are $14,000,000.What is the net loss for the fiscal year ending January 31,2020?

Accepted Answer

A) $14,000,000 net loss 
B) $3,000,000 net loss 
C) $17,000,000 net loss 
D) $8,000,000 net loss 
A) $14,000,000 net loss 
B) $3,000,000 net loss 
C) $17,000,000 net loss 
D) $8,000,000 net loss

Question 20

On February 3,2019,Bombard Corporation acquired 4,000 shares of its own $1 par value common stock for $30 per share.On May 24,2019,1,500 shares of the treasury stock were sold for $35 per share.
Required:
Prepare the journal entries to record the purchase and sale of the treasury stock.Omit explanations.

Accepted Answer

The answer of On February 3,2019,Bombard Corporation acquired 4,000 shares...

The price-earnings ratio is the same amount as the market value per share.

The Statement of Stockholders' Equity does NOT include:

The chronological order of dates for cash dividends are:

Only stockholders holding stock on the record date will receive a dividend.

Convertible preferred stock is usually convertible into the issuer's common stock at the discretion of the preferred stockholder.

During the first year of operations,New York Corporation had the following transactions: Required: Prepare the journal entries for the above transactions.Omit explanations.

The purchase of treasury stock is reported on the statement of cash flows as a financing activity.

Corporations may either sell stock directly to the stockholders or use the service of an underwriter.

The payment of dividends will be reported on the statement of cash flows as a:

The date on which a cash dividend becomes a legal obligation is the:

Bryant Corporation issued 10,000 new shares of its $5 par common stock in conjunction with an employee stock compensation plan.On the date of issuance,the market value of the stock was $50 per share. Prepare the journal entry to record this transaction.Omit explanations.

Treasury stock accounts for the difference between the number of:

For cash dividends,no journal entry is made on the date of record.

The Retained Earnings account contains cash for paying dividends to the stockholders.

The issuance of common stock in exchange for cash will be reported in:

Treasury stock is reported in the stockholders' equity section of the balance sheet.

The chairperson of the board of directors often has the title of:

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

The price-earnings ratio is the same amount as the market value per share.

The Statement of Stockholders' Equity does NOT include:

The chronological order of dates for cash dividends are:

Only stockholders holding stock on the record date will receive a dividend.

Convertible preferred stock is usually convertible into the issuer's common stock at the discretion of the preferred stockholder.

During the first year of operations,New York Corporation had the following transactions: Required: Prepare the journal entries for the above transactions.Omit explanations.

The purchase of treasury stock is reported on the statement of cash flows as a financing activity.

Corporations may either sell stock directly to the stockholders or use the service of an underwriter.

The payment of dividends will be reported on the statement of cash flows as a:

The date on which a cash dividend becomes a legal obligation is the:

Bryant Corporation issued 10,000 new shares of its $5 par common stock in conjunction with an employee stock compensation plan.On the date of issuance,the market value of the stock was $50 per share. Prepare the journal entry to record this transaction.Omit explanations.

Treasury stock accounts for the difference between the number of:

For cash dividends,no journal entry is made on the date of record.

The Retained Earnings account contains cash for paying dividends to the stockholders.

The issuance of common stock in exchange for cash will be reported in:

Treasury stock is reported in the stockholders' equity section of the balance sheet.

The chairperson of the board of directors often has the title of:

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