Question 1

Retained earnings:

Accepted Answer

A)  Are the cumulative net profits or losses minus dividends paid since the date of incorporation. 
B)  Are part of the income statement. 
C)  Represent an amount of cash available to pay shareholders. 
D)  Are the cumulative net profits or losses minus dividends paid since the date of incorporation,and are part of shareholders' equity. 
E)  All of these answers are correct. 
A)  Are the cumulative net profits or losses minus dividends paid since the date of incorporation. 
B)  Are part of the income statement. 
C)  Represent an amount of cash available to pay shareholders. 
D)  Are the cumulative net profits or losses minus dividends paid since the date of incorporation,and are part of shareholders' equity. 
E)  All of these answers are correct.

Question 2

The purchase of treasury shares for cash reduces the corporation's assets and equity by equal amounts.

Accepted Answer

A) True 
 B)False

Question 3

Company purchases and retirements of treasury shares are made at a company's discretion.

Accepted Answer

A) True 
 B)False

Question 4

Explain how to calculate earnings per share and how it is used for analysis of a company's financial status.

Accepted Answer

Earnings per share is calculated by subt

Question 5

If a company's activities include operations that are being discontinued,the income or loss effects of the discontinued operations are included on the income statement in income from continuing operations.

Accepted Answer

A) True 
 B)False

Question 6

A share split is the distribution of additional shares to shareholders according to their percent of ownership.

Accepted Answer

A) True 
 B)False

Question 7

A share dividend transfers a portion of a corporation's equity from retained earnings to _____________________________.

Accepted Answer

The answer of A share dividend transfers a portion of...

Question 8

After using an expected useful life of seven years and no residual value to depreciate its machine over the preceding two years,a company decided early this year that the machine would last only three more years.The change in accounting estimate results in an adjustment to ending retained earnings for the prior period with no impact on any future periods.

Accepted Answer

A) True 
 B)False

Question 9

Item(s)that would be included in other comprehensive income include:

Accepted Answer

A)  Unrealized gains (losses)on held for trading investments. 
B)  Unrealized gains (losses)on available-for-sale investments. 
C)  Unrealized gains (losses)on held to maturity investments. 
D)  Unrealized gains (losses)on discontinued operation. 
E)  Net incomE. 
A)  Unrealized gains (losses)on held for trading investments. 
B)  Unrealized gains (losses)on available-for-sale investments. 
C)  Unrealized gains (losses)on held to maturity investments. 
D)  Unrealized gains (losses)on discontinued operation. 
E)  Net incomE.

Question 10

A share split decreases the market price of the company shares.

Accepted Answer

A) True 
 B)False

Question 11

The Contributed Capital,Treasury Shares account can have a zero or credit balance,but it cannot have a debit balance.

Accepted Answer

A) True 
 B)False

Question 12

Earnings per share is calculated by dividing the number of common shares outstanding by net income.

Accepted Answer

A) True 
 B)False

Question 13

A change from moving weighted average to FIFO reporting is:

Accepted Answer

A)  A change that results in a discontinued operation. 
B)  A change in accounting principle and is allowed if it improves the usefulness of information in the financial statements. 
C)  Not allowed once an inventory costing method has been chosen. 
D)  Allowed if it improves the usefulness of information in the financial statements. 
E)  A change in accounting principle and is not allowed even if it improves the usefulness of information in the financial statements. 
A)  A change that results in a discontinued operation. 
B)  A change in accounting principle and is allowed if it improves the usefulness of information in the financial statements. 
C)  Not allowed once an inventory costing method has been chosen. 
D)  Allowed if it improves the usefulness of information in the financial statements. 
E)  A change in accounting principle and is not allowed even if it improves the usefulness of information in the financial statements.

Question 14

The cumulative effect of changing accounting principles is only reported for the year of the change.

Accepted Answer

A) True 
 B)False

Question 15

A reverse share split reduces the market value of shares and the par value per share.

Accepted Answer

A) True 
 B)False

Question 16

A 10% share dividend increases the number of outstanding shares.

Accepted Answer

A) True 
 B)False

Question 17

Quantum Corporation had net income of $35,000 and paid preferred dividends of $6,000..Quantum had 4,000 common shares outstanding.Calculate the earnings per share.

Accepted Answer

($35,000 -

Question 18

Treasury shares are shares that have been _____________________ by the corporation.

Accepted Answer

The answer of Treasury shares are shares that have been...

Question 19

An expanded income statement for a corporation with discontinued operations includes information on:

Accepted Answer

A)  Continuing operations. 
B)  Discontinued operations. 
C)  Earnings per share. 
D)  Net income. 
E)  All of these answers are correct. 
A)  Continuing operations. 
B)  Discontinued operations. 
C)  Earnings per share. 
D)  Net income. 
E)  All of these answers are correct.

Question 20

The journal entry to record $25,000 market value in share dividends on the date of declaration can be a debit to share dividends and a credit to common share dividends distributable.

Accepted Answer

A) True 
 B)False

Retained earnings:

The purchase of treasury shares for cash reduces the corporation's assets and equity by equal amounts.

Company purchases and retirements of treasury shares are made at a company's discretion.

Explain how to calculate earnings per share and how it is used for analysis of a company's financial status.

If a company's activities include operations that are being discontinued,the income or loss effects of the discontinued operations are included on the income statement in income from continuing operations.

A share split is the distribution of additional shares to shareholders according to their percent of ownership.

A share dividend transfers a portion of a corporation's equity from retained earnings to _____________________________.

Item(s)that would be included in other comprehensive income include:

A share split decreases the market price of the company shares.

The Contributed Capital,Treasury Shares account can have a zero or credit balance,but it cannot have a debit balance.

Earnings per share is calculated by dividing the number of common shares outstanding by net income.

A change from moving weighted average to FIFO reporting is:

The cumulative effect of changing accounting principles is only reported for the year of the change.

A reverse share split reduces the market value of shares and the par value per share.

A 10% share dividend increases the number of outstanding shares.

Quantum Corporation had net income of $35,000 and paid preferred dividends of $6,000..Quantum had 4,000 common shares outstanding.Calculate the earnings per share.

Treasury shares are shares that have been _____________________ by the corporation.

An expanded income statement for a corporation with discontinued operations includes information on:

The journal entry to record $25,000 market value in share dividends on the date of declaration can be a debit to share dividends and a credit to common share dividends distributable.

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters

Exam 14: Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Retained earnings:

The purchase of treasury shares for cash reduces the corporation's assets and equity by equal amounts.

Company purchases and retirements of treasury shares are made at a company's discretion.

Explain how to calculate earnings per share and how it is used for analysis of a company's financial status.

If a company's activities include operations that are being discontinued,the income or loss effects of the discontinued operations are included on the income statement in income from continuing operations.

A share split is the distribution of additional shares to shareholders according to their percent of ownership.

A share dividend transfers a portion of a corporation's equity from retained earnings to _____________________________.

Item(s)that would be included in other comprehensive income include:

A share split decreases the market price of the company shares.

The Contributed Capital,Treasury Shares account can have a zero or credit balance,but it cannot have a debit balance.

Earnings per share is calculated by dividing the number of common shares outstanding by net income.

A change from moving weighted average to FIFO reporting is:

The cumulative effect of changing accounting principles is only reported for the year of the change.

A reverse share split reduces the market value of shares and the par value per share.

A 10% share dividend increases the number of outstanding shares.

Quantum Corporation had net income of $35,000 and paid preferred dividends of $6,000..Quantum had 4,000 common shares outstanding.Calculate the earnings per share.

Treasury shares are shares that have been _____________________ by the corporation.

An expanded income statement for a corporation with discontinued operations includes information on:

The journal entry to record $25,000 market value in share dividends on the date of declaration can be a debit to share dividends and a credit to common share dividends distributable.

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters