Question 1

Stated value stock is no-par stock that is assigned a value per share by the corporation's board of directors.

Accepted Answer

A) True 
 B)False

Question 2

The following data has been collected about Keller Company's stockholders' equity accounts:   Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:

Accepted Answer

A) $1.15. 
B) $1.28. 
C) $11.50. 
D) $10.50. 
E) $10.00. 
A) $1.15. 
B) $1.28. 
C) $11.50. 
D) $10.50. 
E) $10.00.

Question 3

Common stock always carries a preference for receiving dividends over preferred stock.

Accepted Answer

A) True 
 B)False

Question 4

Paid and declared preferred dividends are called dividends in arrears.

Accepted Answer

A) True 
 B)False

Question 5

A large stock dividend only occurs when a distribution of more than 50% of previously outstanding shares is issued.

Accepted Answer

A) True 
 B)False

Question 6

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding. The following selected transactions related to the company's stock took place during the current year:   Prepare necessary journal entries to record the events of April 15, May 1 and May 10.

Accepted Answer

The answer of Parlay Corporation has 2,000,000 shares of $0.50...

Question 7

A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be:

Accepted Answer

A) Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000. 
B) Debit Cash $27,500; credit Common Stock $27,500. 
C) Debit Common Stock $27,500; credit Cash $27,500. 
D) Debit Treasury Stock $27,500; credit Cash $27,500. 
E) Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500. 
A) Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000. 
B) Debit Cash $27,500; credit Common Stock $27,500. 
C) Debit Common Stock $27,500; credit Cash $27,500. 
D) Debit Treasury Stock $27,500; credit Cash $27,500. 
E) Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.

Question 8

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

Accepted Answer

A) Stock dividend. 
B) Stock subscription. 
C) Premium on stock. 
D) Discount on stock. 
E) Treasury stock. 
A) Stock dividend. 
B) Stock subscription. 
C) Premium on stock. 
D) Discount on stock. 
E) Treasury stock.

Question 9

Stated value of no-par stock is:

Accepted Answer

A) Another name for redemption value. 
B) An amount assigned to par value stock by the state of incorporation. 
C) The market value of the stock on the date of issuance. 
D) The difference between the par value of stock and the amount below or above par value paid-in by the stockholder. 
E) An amount assigned to no-par stock by the corporation's board of directors. 
A) Another name for redemption value. 
B) An amount assigned to par value stock by the state of incorporation. 
C) The market value of the stock on the date of issuance. 
D) The difference between the par value of stock and the amount below or above par value paid-in by the stockholder. 
E) An amount assigned to no-par stock by the corporation's board of directors.

Question 10

Stockholders' equity consists of which of the following?

Accepted Answer

A) Long-term assets. 
B) Paid-in capital and retained earnings. 
C) Paid-in capital and par value. 
D) Retained earnings and cash. 
E) Premiums and discounts. 
A) Long-term assets. 
B) Paid-in capital and retained earnings. 
C) Paid-in capital and par value. 
D) Retained earnings and cash. 
E) Premiums and discounts.

Question 11

Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders.

Accepted Answer

A) True 
 B)False

Question 12

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

Accepted Answer

The answer of _____________________ is a general term that refers...

Question 13

A company made an error in recording the 2016 purchase of computer equipment as an expense. This was discovered in 2017. The item should be reported as a prior period adjustment on the 2017 income statement.

Accepted Answer

A) True 
 B)False

Question 14

The price-earnings ratio reveals information about the stock market's expectations for a company's future earnings growth.

Accepted Answer

A) True 
 B)False

Question 15

A company reported net income of $836,000 for the current year. The year-end market price per common share was $12 and there were 475,000 weighted-average shares of common stock outstanding. Calculate the company's price-earnings ratio.

Accepted Answer

Price-Earnings Ratio = Market

Question 16

A company paid a cash dividend of $0.88 per share during the current year, and reported 18,000 shares of common stock issued, and 2,000 common shares in treasury stock during the current year. The year-end market price per share was $27.50. Calculate the following: (1) total amount of cash dividends paid to common shareholders, and (2) dividend yield.

Accepted Answer

(1) $0.88 * (18,000 shares - 2

Question 17

A common statutory restriction is reported on the income statement whereas; a common contractual restriction is reported in the stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

Accepted Answer

The answer of __________________________ is the annual amount of cash...

Question 19

A corporation had the following stock outstanding when the company's board of directors declared a $55,000 cash dividend during the current year:   Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 20

If the purchase price of retired stock exceeds the net amount removed from paid-in capital, the excess is debited to Retained Earnings.

Accepted Answer

A) True 
 B)False

Stated value stock is no-par stock that is assigned a value per share by the corporation's board of directors.

The following data has been collected about Keller Company's stockholders' equity accounts: Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:

Common stock always carries a preference for receiving dividends over preferred stock.

Paid and declared preferred dividends are called dividends in arrears.

A large stock dividend only occurs when a distribution of more than 50% of previously outstanding shares is issued.

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding. The following selected transactions related to the company's stock took place during the current year: Prepare necessary journal entries to record the events of April 15, May 1 and May 10.

A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be:

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

Stated value of no-par stock is:

Stockholders' equity consists of which of the following?

Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders.

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

A company made an error in recording the 2016 purchase of computer equipment as an expense. This was discovered in 2017. The item should be reported as a prior period adjustment on the 2017 income statement.

The price-earnings ratio reveals information about the stock market's expectations for a company's future earnings growth.

A company reported net income of $836,000 for the current year. The year-end market price per common share was $12 and there were 475,000 weighted-average shares of common stock outstanding. Calculate the company's price-earnings ratio.

A common statutory restriction is reported on the income statement whereas; a common contractual restriction is reported in the stockholders' equity section of the balance sheet.

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

If the purchase price of retired stock exceeds the net amount removed from paid-in capital, the excess is debited to Retained Earnings.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 11: Reporting and Analyzing Equity

Stated value stock is no-par stock that is assigned a value per share by the corporation's board of directors.

The following data has been collected about Keller Company's stockholders' equity accounts: Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:

Common stock always carries a preference for receiving dividends over preferred stock.

Paid and declared preferred dividends are called dividends in arrears.

A large stock dividend only occurs when a distribution of more than 50% of previously outstanding shares is issued.

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding. The following selected transactions related to the company's stock took place during the current year: Prepare necessary journal entries to record the events of April 15, May 1 and May 10.

A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be:

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

Stated value of no-par stock is:

Stockholders' equity consists of which of the following?

Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders.

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

A company made an error in recording the 2016 purchase of computer equipment as an expense. This was discovered in 2017. The item should be reported as a prior period adjustment on the 2017 income statement.

The price-earnings ratio reveals information about the stock market's expectations for a company's future earnings growth.

A company reported net income of $836,000 for the current year. The year-end market price per common share was $12 and there were 475,000 weighted-average shares of common stock outstanding. Calculate the company's price-earnings ratio.

A common statutory restriction is reported on the income statement whereas; a common contractual restriction is reported in the stockholders' equity section of the balance sheet.

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

If the purchase price of retired stock exceeds the net amount removed from paid-in capital, the excess is debited to Retained Earnings.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters