Question 1

If 20,000 shares are authorized,15,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $15,000.

Accepted Answer

A) True 
 B)False

Question 2

The issuance of stock is reported as a financing activity.

Accepted Answer

A) True 
 B)False

Question 3

A drawing account is sometimes referred to as a ______________________.

Accepted Answer

The answer of A drawing account is sometimes referred to...

Question 4

Explain what amount is recorded in the Additional Paid-in Capital account when stock is issued.

Accepted Answer

The amount recorded in the Add

Question 5

Treasury stock is stock that has been issued,but not currently outstanding.

Accepted Answer

A) True 
 B)False

Question 6

Using the concept of comprehensive income,which of the following items is included as part of comprehensive income but not as part of net income?

Accepted Answer

A) Extraordinary items 
B) Accounting changes 
C) Unrealized holding gains or losses 
D) Loss on sale of investments 
A) Extraordinary items 
B) Accounting changes 
C) Unrealized holding gains or losses 
D) Loss on sale of investments

Question 7

When a company declares a 2-for-1 stock split,

Accepted Answer

A) stockholders' equity is doubled. 
B) there is no effect on total stockholders' equity. 
C) a shareholder who previously held 100 shares will have 300 shares after the split. 
D) the price of each share will be one third of what it was before the stock split. 
A) stockholders' equity is doubled. 
B) there is no effect on total stockholders' equity. 
C) a shareholder who previously held 100 shares will have 300 shares after the split. 
D) the price of each share will be one third of what it was before the stock split.

Question 8

Kiwi Charters reported the following information at December 31,2012:   The number of shares of common stock issued is

Accepted Answer

A) 10,000. 
B) 100,000. 
C) 500,000. 
D) 550,000. 
A) 10,000. 
B) 100,000. 
C) 500,000. 
D) 550,000.

Question 9

Vegan Company reported the following: Common stock,$5 par,200,000 shares authorized,50,000 shares issued and outstanding
What is the effect of issuing 2,000 shares of common stock in exchange for land with valued by a realtor at $36,000 if the common stock sells for $12 per share and is regularly traded?

Accepted Answer

A) The Land account increases by $24,000. 
B) Retained Earnings decreases by $10,000. 
C) Common Stock increases by $36,000. 
D) Additional Paid-in Capital - Common increases by $24,000. 
A) The Land account increases by $24,000. 
B) Retained Earnings decreases by $10,000. 
C) Common Stock increases by $36,000. 
D) Additional Paid-in Capital - Common increases by $24,000.

Question 10

Manatee Company Manatee Company was incorporated as a new business on January 1,2012.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%,$10 par value,cumulative,participating preferred stock.On January 1,2012,the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31,2012,was $375,000.
Refer to the information about Manatee Company.
Manatee's total stockholders' equity reported on the balance sheet at December 31,2012,is

Accepted Answer

A) $ 60,000. 
B) $120,000. 
C) $180,000. 
D) $555,000. 
A) $ 60,000. 
B) $120,000. 
C) $180,000. 
D) $555,000.

Question 11

Port,Inc.paid a cash dividend on January 2 that had been declared prior to the end of its fiscal year.The entry to pay the dividend will

Accepted Answer

A) increase Cash and increase Cash Dividend Payable. 
B) decrease Cash Dividend Payable and decrease Cash. 
C) decrease Retained Earnings and increase Cash Dividend Payable. 
D) decrease Cash Dividend Payable and increase Retained Earnings. 
A) increase Cash and increase Cash Dividend Payable. 
B) decrease Cash Dividend Payable and decrease Cash. 
C) decrease Retained Earnings and increase Cash Dividend Payable. 
D) decrease Cash Dividend Payable and increase Retained Earnings.

Question 12

[APPENDIX] A partnership can be owned by one or more entities or individuals.

Accepted Answer

A) True 
 B)False

Question 13

Museum Corporation acquired a new manufacturing building by issuing 10,000 shares of its $50 par value preferred stock with a $75 per share market price.Similar buildings have recently cost $780,000.What are the effects of this transaction on the accounting equation for Museum?

Accepted Answer

A) Building and Preferred Stock increase $780,000 
B) Building and Preferred Stock increase $500,000 
C) Building increases $780,000;Preferred Stock increases $500,000;Additional Paid-in Capital--Preferred increases $280,000 
D) Building increases $750,000;Preferred Stock increases $500,000;Additional Paid-in Capital--Preferred increases $250,000 
A) Building and Preferred Stock increase $780,000 
B) Building and Preferred Stock increase $500,000 
C) Building increases $780,000;Preferred Stock increases $500,000;Additional Paid-in Capital--Preferred increases $280,000 
D) Building increases $750,000;Preferred Stock increases $500,000;Additional Paid-in Capital--Preferred increases $250,000

Question 14

Which of the following statements is true with regard to contributed capital?

Accepted Answer

A) Preferred stock is stock that has been retired. 
B) It is very unlikely corporations may have more than one class of stock outstanding. 
C) The outstanding number of shares is the maximum number of shares that can be issued by a corporation. 
D) The shares that are in the hands of the stockholders are said to be outstanding. 
A) Preferred stock is stock that has been retired. 
B) It is very unlikely corporations may have more than one class of stock outstanding. 
C) The outstanding number of shares is the maximum number of shares that can be issued by a corporation. 
D) The shares that are in the hands of the stockholders are said to be outstanding.

Question 15

A liability for dividends is created

Accepted Answer

A) at the end of each fiscal year. 
B) at the date of payment. 
C) at the date of record. 
D) at the date of declaration. 
A) at the end of each fiscal year. 
B) at the date of payment. 
C) at the date of record. 
D) at the date of declaration.

Question 16

[APPENDIX] Which accounts are used by a sole proprietorship that are not used by a corporation?

Accepted Answer

A sole proprietorship uses a capital acc

Question 17

Pustay Parts Shop began business on January 1,2012.The corporate charter authorized issuance of 10,000 shares of $2 par value common stock and 4,000 shares of $8 par value,6% cumulative preferred stock.Pustay issued 2,400 shares of common stock for cash at $20 per share on January 2,2012.What effect does the entry to record the issuance of stock have on total stockholders' equity?

Accepted Answer

A) Increase of $4,800 
B) Decrease of $4,800 
C) Increase of $48,000 
D) Decrease of $48,000 
A) Increase of $4,800 
B) Decrease of $4,800 
C) Increase of $48,000 
D) Decrease of $48,000

Question 18

Net income that has been earned by the corporation but not paid out as dividends are ______________________________.

Accepted Answer

The answer of Net income that has been earned by...

Question 19

FASB's concept of comprehensive income

Accepted Answer

A) excludes transactions that involve the payment of dividends. 
B) requires that all transactions must be shown on the income statement. 
C) has a primary drawback because it allows management to manipulate the income figure to a certain extent. 
D) allows items that are not necessarily under management's control,such as natural disasters,to be shown as an adjustment of retained earnings. 
A) excludes transactions that involve the payment of dividends. 
B) requires that all transactions must be shown on the income statement. 
C) has a primary drawback because it allows management to manipulate the income figure to a certain extent. 
D) allows items that are not necessarily under management's control,such as natural disasters,to be shown as an adjustment of retained earnings.

Question 20

Kiwi Charters reported the following information at December 31,2012:   The average recorded value per share of common stock at December 31,2012 is

Accepted Answer

A) $1.00 
B) $1.75 
C) $1.25 
D) $2.50 
A) $1.00 
B) $1.75 
C) $1.25 
D) $2.50

If 20,000 shares are authorized,15,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $15,000.

The issuance of stock is reported as a financing activity.

A drawing account is sometimes referred to as a ______________________.

Explain what amount is recorded in the Additional Paid-in Capital account when stock is issued.

Treasury stock is stock that has been issued,but not currently outstanding.

Using the concept of comprehensive income,which of the following items is included as part of comprehensive income but not as part of net income?

When a company declares a 2-for-1 stock split,

Kiwi Charters reported the following information at December 31,2012: The number of shares of common stock issued is

Port,Inc.paid a cash dividend on January 2 that had been declared prior to the end of its fiscal year.The entry to pay the dividend will

[APPENDIX] A partnership can be owned by one or more entities or individuals.

Museum Corporation acquired a new manufacturing building by issuing 10,000 shares of its $50 par value preferred stock with a $75 per share market price.Similar buildings have recently cost $780,000.What are the effects of this transaction on the accounting equation for Museum?

Which of the following statements is true with regard to contributed capital?

A liability for dividends is created

[APPENDIX] Which accounts are used by a sole proprietorship that are not used by a corporation?

Net income that has been earned by the corporation but not paid out as dividends are ______________________________.

FASB's concept of comprehensive income

Kiwi Charters reported the following information at December 31,2012: The average recorded value per share of common stock at December 31,2012 is

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 11: Stockholders Equity

If 20,000 shares are authorized,15,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $15,000.

The issuance of stock is reported as a financing activity.

A drawing account is sometimes referred to as a ______________________.

Explain what amount is recorded in the Additional Paid-in Capital account when stock is issued.

Treasury stock is stock that has been issued,but not currently outstanding.

Using the concept of comprehensive income,which of the following items is included as part of comprehensive income but not as part of net income?

When a company declares a 2-for-1 stock split,

Kiwi Charters reported the following information at December 31,2012: The number of shares of common stock issued is

Port,Inc.paid a cash dividend on January 2 that had been declared prior to the end of its fiscal year.The entry to pay the dividend will

[APPENDIX] A partnership can be owned by one or more entities or individuals.

Museum Corporation acquired a new manufacturing building by issuing 10,000 shares of its $50 par value preferred stock with a $75 per share market price.Similar buildings have recently cost $780,000.What are the effects of this transaction on the accounting equation for Museum?

Which of the following statements is true with regard to contributed capital?

A liability for dividends is created

[APPENDIX] Which accounts are used by a sole proprietorship that are not used by a corporation?

Net income that has been earned by the corporation but not paid out as dividends are ______________________________.

FASB's concept of comprehensive income

Kiwi Charters reported the following information at December 31,2012: The average recorded value per share of common stock at December 31,2012 is

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters