Question 1

The calculation to determine the number of outstanding shares of stock is the number of:

Accepted Answer

A) treasury stock shares plus number of issued shares. 
B) authorized shares minus number of issued shares. 
C) issued shares minus number of treasury shares. 
D) authorized shares minus treasury shares. 
A) treasury stock shares plus number of issued shares. 
B) authorized shares minus number of issued shares. 
C) issued shares minus number of treasury shares. 
D) authorized shares minus treasury shares.

Question 2

How does the declaration of a cash dividend affect the accounting equation?

Accepted Answer

A) increase to liabilities and a decrease to stockholders' equity 
B) increase to liabilities and a decrease to assets 
C) increase to assets and a decrease to liabilities 
D) increase to stockholders' equity and a decrease to assets 
A) increase to liabilities and a decrease to stockholders' equity 
B) increase to liabilities and a decrease to assets 
C) increase to assets and a decrease to liabilities 
D) increase to stockholders' equity and a decrease to assets

Question 3

Wetzel,Inc.has 20,000 shares of cumulative preferred stock outstanding,with annual dividends paid at a rate of $2 per share.Wetzel,Inc.also has 40,000 shares of common stock outstanding.Preferred dividends are in arrears from the prior year and the number of shares remained the same for this year and last year.If Wetzel,Inc.declares a $400,000 dividend in the current year,each outstanding share of common stock would receive: (Round your answer to the nearest cent. )

Accepted Answer

A) $2.00. 
B) $8.00. 
C) $9.00. 
D) $10.00. 
A) $2.00. 
B) $8.00. 
C) $9.00. 
D) $10.00.

Question 4

Arnold,Inc.declares and distributes a 10% common stock dividend when it has 10,000 shares of $10 par value common stock outstanding.If the market value of the common stock is $20,the journal entry to record the stock dividend would include a:

Accepted Answer

A) debit to Retained Earnings $20,000. 
B) debit to Retained Earnings $1000. 
C) credit to Paid-in Capital in Excess of Par-Common $20,000. 
D) credit to Paid-in Capital in Excess of Par-Common $1000. 
A) debit to Retained Earnings $20,000. 
B) debit to Retained Earnings $1000. 
C) credit to Paid-in Capital in Excess of Par-Common $20,000. 
D) credit to Paid-in Capital in Excess of Par-Common $1000.

Question 5

Orlando Corporation incorporated on January 2 of the current year.During the year,Orlando had the following transactions:   What is the total amount of stockholders' equity as of December 31 of the current year?

Accepted Answer

A) $2,808,000 
B) $2,700,000 
C) $2,992,000 
D) $3,100,000 
A) $2,808,000 
B) $2,700,000 
C) $2,992,000 
D) $3,100,000

Question 6

Preferred stock is:

Accepted Answer

A) the most common type of stock issued. 
B) listed as long-term debt on the balance sheet. 
C) rarely issued by corporations. 
D) none of the above. 
A) the most common type of stock issued. 
B) listed as long-term debt on the balance sheet. 
C) rarely issued by corporations. 
D) none of the above.

Question 7

A company buys treasury stock for $10 per share.The company later sells the treasury stock for $11 per share.What is the difference between the resale price and the cost of the treasury stock called?

Accepted Answer

A) Gain on Sale of Treasury Stock 
B) Loss on Sale of Treasury Stock 
C) Paid-in Capital in Excess of Par 
D) Paid-in Capital from Treasury Stock Transactions 
A) Gain on Sale of Treasury Stock 
B) Loss on Sale of Treasury Stock 
C) Paid-in Capital in Excess of Par 
D) Paid-in Capital from Treasury Stock Transactions

Question 8

Dividends are declared by the:

Accepted Answer

A) Chief Accounting Officer. 
B) Chief Financial Officer. 
C) President. 
D) Board of directors. 
A) Chief Accounting Officer. 
B) Chief Financial Officer. 
C) President. 
D) Board of directors.

Question 9

The Home Store reported the following figures: Retained Earnings,February 1,2019...........$14 million
Retained Earnings,February 1,2018...........$23 million
The company's fiscal year ends on February 1 each year.Net income for the fiscal year ending February 1,2017 is $26 million.What is the amount of dividends declared for the fiscal year ending February 1,2017?

Accepted Answer

A) $23 million 
B) $35 million 
C) $3 million 
D) $26 million 
A) $23 million 
B) $35 million 
C) $3 million 
D) $26 million

Question 10

The total stockholders' equity remains the same before and after a stock split.

Accepted Answer

A) True 
 B)False

Question 11

A company can issue common stock in exchange for assets other than cash.

Accepted Answer

A) True 
 B)False

Question 12

Stockholders have limited liability for a corporation's debts.

Accepted Answer

A) True 
 B)False

Question 13

In most cases,stockholders are more concerned about the par value of a stock than any other value.

Accepted Answer

A) True 
 B)False

Question 14

Legal capital for a corporation equals:

Accepted Answer

A) the selling price of stock that has been issued. 
B) the par value of stock that has been authorized. 
C) the par value of stock that has been issued. 
D) the par value of stock that is outstanding. 
A) the selling price of stock that has been issued. 
B) the par value of stock that has been authorized. 
C) the par value of stock that has been issued. 
D) the par value of stock that is outstanding.

Question 15

How does the declaration and distribution of a 15% stock dividend affect stockholders' equity?

Accepted Answer

A) The total amount of stockholders' equity will increase. 
B) The total amount of stockholders' equity will decrease. 
C) The balances of different accounts in stockholders' equity will change,but total stockholders' equity is unchanged. 
D) There is no change. 
A) The total amount of stockholders' equity will increase. 
B) The total amount of stockholders' equity will decrease. 
C) The balances of different accounts in stockholders' equity will change,but total stockholders' equity is unchanged. 
D) There is no change.

Question 16

Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000.Badger Corporation's stock has been actively trading at $8 per share.The journal entry for this transaction would include a:

Accepted Answer

A) debit to Legal Expense $25,000. 
B) debit to Legal Expense $40,000. 
C) credit to Common Stock $15,000. 
D) credit to Paid-in Capital in Excess of Par-Common $40,000. 
A) debit to Legal Expense $25,000. 
B) debit to Legal Expense $40,000. 
C) credit to Common Stock $15,000. 
D) credit to Paid-in Capital in Excess of Par-Common $40,000.

Question 17

On December 31,Sulfur Corporation has the following data available:   What is return on equity? (Round your final answer to two decimal places,X.XX%. )

Accepted Answer

A) 14.91% 
B) 34.29% 
C) 25.71% 
D) 40.00% 
A) 14.91% 
B) 34.29% 
C) 25.71% 
D) 40.00%

Question 18

On the stockholders' equity section of the Balance Sheet,Common Stock is listed before Preferred Stock.

Accepted Answer

A) True 
 B)False

Question 19

An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the stock's par value per share is a:

Accepted Answer

A) deficit. 
B) stock dividend. 
C) stock split. 
D) cash dividend. 
A) deficit. 
B) stock dividend. 
C) stock split. 
D) cash dividend.

Question 20

Small stock dividends are recorded at market value per share and large stock dividends are recorded at par value per share.

Accepted Answer

A) True 
 B)False

The calculation to determine the number of outstanding shares of stock is the number of:

How does the declaration of a cash dividend affect the accounting equation?

Arnold,Inc.declares and distributes a 10% common stock dividend when it has 10,000 shares of $10 par value common stock outstanding.If the market value of the common stock is $20,the journal entry to record the stock dividend would include a:

Orlando Corporation incorporated on January 2 of the current year.During the year,Orlando had the following transactions: What is the total amount of stockholders' equity as of December 31 of the current year?

Preferred stock is:

A company buys treasury stock for $10 per share.The company later sells the treasury stock for $11 per share.What is the difference between the resale price and the cost of the treasury stock called?

Dividends are declared by the:

The total stockholders' equity remains the same before and after a stock split.

A company can issue common stock in exchange for assets other than cash.

Stockholders have limited liability for a corporation's debts.

In most cases,stockholders are more concerned about the par value of a stock than any other value.

Legal capital for a corporation equals:

How does the declaration and distribution of a 15% stock dividend affect stockholders' equity?

Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000.Badger Corporation's stock has been actively trading at $8 per share.The journal entry for this transaction would include a:

On December 31,Sulfur Corporation has the following data available: What is return on equity? (Round your final answer to two decimal places,X.XX%. )

On the stockholders' equity section of the Balance Sheet,Common Stock is listed before Preferred Stock.

An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the stock's par value per share is a:

Small stock dividends are recorded at market value per share and large stock dividends are recorded at par value per share.

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 calculation to determine the number of outstanding shares of stock is the number of:

How does the declaration of a cash dividend affect the accounting equation?

Arnold,Inc.declares and distributes a 10% common stock dividend when it has 10,000 shares of $10 par value common stock outstanding.If the market value of the common stock is $20,the journal entry to record the stock dividend would include a:

Orlando Corporation incorporated on January 2 of the current year.During the year,Orlando had the following transactions: What is the total amount of stockholders' equity as of December 31 of the current year?

Preferred stock is:

A company buys treasury stock for $10 per share.The company later sells the treasury stock for $11 per share.What is the difference between the resale price and the cost of the treasury stock called?

Dividends are declared by the:

The total stockholders' equity remains the same before and after a stock split.

A company can issue common stock in exchange for assets other than cash.

Stockholders have limited liability for a corporation's debts.

In most cases,stockholders are more concerned about the par value of a stock than any other value.

Legal capital for a corporation equals:

How does the declaration and distribution of a 15% stock dividend affect stockholders' equity?

Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000.Badger Corporation's stock has been actively trading at $8 per share.The journal entry for this transaction would include a:

On December 31,Sulfur Corporation has the following data available: What is return on equity? (Round your final answer to two decimal places,X.XX%. )

On the stockholders' equity section of the Balance Sheet,Common Stock is listed before Preferred Stock.

An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the stock's par value per share is a:

Small stock dividends are recorded at market value per share and large stock dividends are recorded at par value per share.

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