Question 1

The Treasury Shares account is a contra equity account.

Accepted Answer

A) True 
 B)False

Question 2

The journal entry to record $10,000 in a share dividend on the declaration date can include a debit to cash dividends declared and a credit to dividends payable.

Accepted Answer

A) True 
 B)False

Question 3

Retained earnings are part of the shareholders' claim on the company's net assets.

Accepted Answer

A) True 
 B)False

Question 4

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a:

Accepted Answer

A)  Premium on shares. 
B)  Share subscription. 
C)  Share dividend. 
D)  Discount on shares. 
E)  Preferred sharE. 
A)  Premium on shares. 
B)  Share subscription. 
C)  Share dividend. 
D)  Discount on shares. 
E)  Preferred sharE.

Question 5

Changes in accounting estimates are:

Accepted Answer

A)  Considered to be accounting errors. 
B)  Reported by retrospective restatement of financial statements. 
C)  Accounted for with a cumulative "catch-up" adjustment. 
D)  Considered to be a change in accounting policy. 
E)  Accounted for in the period of the change and future periods. 
A)  Considered to be accounting errors. 
B)  Reported by retrospective restatement of financial statements. 
C)  Accounted for with a cumulative "catch-up" adjustment. 
D)  Considered to be a change in accounting policy. 
E)  Accounted for in the period of the change and future periods.

Question 6

The Drain Surgeon Corp's equity on January 1 was as follows: common shares,unlimited shares authorized,250,000 shares issued and outstanding; retained earnings,$1,000,000.
Prepare journal entries to record the following transactions:

Accepted Answer

The answer of The Drain Surgeon Corp's equity on January...

Question 7

Treasury shares are shares that have been authorized,issued,and are outstanding.

Accepted Answer

A) True 
 B)False

Question 8

Explain where each of the following items should appear in the financial statements of Reid and Right Corp,a publishing company:
(1)After the retirement of the company's CEO,the company has decided to downsize its operations.This will include the elimination of the children's book segment of operations.
(2)The company holds 500 shares in Dakota Corp.that originally cost $2,000; the shares now have a market value of $4,000.They are being accounted for as an available-for-sale investment.

Accepted Answer

(1)This is the discontinuation of a prod

Question 9

Given the following information about Rex Carrs Driving School Corporation's current-year activities,answer the questions listed below:
What amounts should be reported on the income statement as:

Accepted Answer

(1)$133,60

Question 10

Describe share dividends and share splits.

Accepted Answer

Both share splits and share dividends di

Question 11

On July 1,Stubbs Corporation had 100,000 no-par-value common shares outstanding.On this day the board of directors declared a 10% share dividend.The fair market value of each share was $13.A possible entry to record this dividend is:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
E)    
A) 
  
B) 
  
C) 
  
D) 
  
E)

Question 12

A share split affects total equity as reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

A share dividend capitalizes retained earnings because it decreases a company's contributed capital.

Accepted Answer

A) True 
 B)False

Question 14

A(n)__________________ is a part of a company's operations that serves a particular line of business or class of customers.

Accepted Answer

Segment of

Question 15

Changes in accounting estimates are applied in determining expenses for the current and future periods.

Accepted Answer

A) True 
 B)False

Question 16

Restrictions on retained earnings can be:

Accepted Answer

A)  Limits that identify how much of the retained earnings balance is not available for dividends or the repurchase of shares 
B)  Statutory limits set by government. 
C)  Due to loan agreements. 
D)  Set by a corporation's directors in order to limit dividends and maintain cash. 
E)  All of these answers are correct. 
A)  Limits that identify how much of the retained earnings balance is not available for dividends or the repurchase of shares 
B)  Statutory limits set by government. 
C)  Due to loan agreements. 
D)  Set by a corporation's directors in order to limit dividends and maintain cash. 
E)  All of these answers are correct.

Question 17

Argue and Fibbs Lawyer Corporation repurchased 200 shares on June 1,for $10,000,to be kept in the treasury.On July 1,it reissued 50 of these shares at $52 per share.On August 1,it reissued the rest of the treasury shares at $49 per share.What is the balance in the Contributed Capital,Treasury Shares account on September 1?

Accepted Answer

A)  $5,050. 
B)  $2,600. 
C)  $100. 
D)  $50. 
E)  $-0-. 
A)  $5,050. 
B)  $2,600. 
C)  $100. 
D)  $50. 
E)  $-0-.

Question 18

A share dividend is not a liability on the balance sheet because it does not require a distribution of assets.

Accepted Answer

A) True 
 B)False

Question 19

The statement of comprehensive income is a detailed statement of net income plus or minus any other comprehensive income items.

Accepted Answer

A) True 
 B)False

Question 20

Restricted retained earnings must be disclosed on the balance sheet or the statement of changes in equity,or in the notes to the financial statements.

Accepted Answer

A) True 
 B)False

The Treasury Shares account is a contra equity account.

The journal entry to record $10,000 in a share dividend on the declaration date can include a debit to cash dividends declared and a credit to dividends payable.

Retained earnings are part of the shareholders' claim on the company's net assets.

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a:

Changes in accounting estimates are:

The Drain Surgeon Corp's equity on January 1 was as follows: common shares,unlimited shares authorized,250,000 shares issued and outstanding; retained earnings,$1,000,000. Prepare journal entries to record the following transactions:

Treasury shares are shares that have been authorized,issued,and are outstanding.

Given the following information about Rex Carrs Driving School Corporation's current-year activities,answer the questions listed below: What amounts should be reported on the income statement as:

Describe share dividends and share splits.

On July 1,Stubbs Corporation had 100,000 no-par-value common shares outstanding.On this day the board of directors declared a 10% share dividend.The fair market value of each share was $13.A possible entry to record this dividend is:

A share split affects total equity as reported on the balance sheet.

A share dividend capitalizes retained earnings because it decreases a company's contributed capital.

A(n)__________________ is a part of a company's operations that serves a particular line of business or class of customers.

Changes in accounting estimates are applied in determining expenses for the current and future periods.

Restrictions on retained earnings can be:

A share dividend is not a liability on the balance sheet because it does not require a distribution of assets.

The statement of comprehensive income is a detailed statement of net income plus or minus any other comprehensive income items.

Restricted retained earnings must be disclosed on the balance sheet or the statement of changes in equity,or in the notes to the financial statements.

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

The Treasury Shares account is a contra equity account.

The journal entry to record $10,000 in a share dividend on the declaration date can include a debit to cash dividends declared and a credit to dividends payable.

Retained earnings are part of the shareholders' claim on the company's net assets.

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a:

Changes in accounting estimates are:

The Drain Surgeon Corp's equity on January 1 was as follows: common shares,unlimited shares authorized,250,000 shares issued and outstanding; retained earnings,$1,000,000. Prepare journal entries to record the following transactions:

Treasury shares are shares that have been authorized,issued,and are outstanding.

Given the following information about Rex Carrs Driving School Corporation's current-year activities,answer the questions listed below: What amounts should be reported on the income statement as:

Describe share dividends and share splits.

On July 1,Stubbs Corporation had 100,000 no-par-value common shares outstanding.On this day the board of directors declared a 10% share dividend.The fair market value of each share was $13.A possible entry to record this dividend is:

A share split affects total equity as reported on the balance sheet.

A share dividend capitalizes retained earnings because it decreases a company's contributed capital.

A(n)__________________ is a part of a company's operations that serves a particular line of business or class of customers.

Changes in accounting estimates are applied in determining expenses for the current and future periods.

Restrictions on retained earnings can be:

A share dividend is not a liability on the balance sheet because it does not require a distribution of assets.

The statement of comprehensive income is a detailed statement of net income plus or minus any other comprehensive income items.

Restricted retained earnings must be disclosed on the balance sheet or the statement of changes in equity,or in the notes to the financial statements.

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