Question 1

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

Accepted Answer

A) A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000. 
B) A debit to Cash for $14,000. 
C) A credit to Common Stock for $182,000. 
D) A credit to Common Stock for $14,000. 
E) A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000. 
A) A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000. 
B) A debit to Cash for $14,000. 
C) A credit to Common Stock for $182,000. 
D) A credit to Common Stock for $14,000. 
E) A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000.

Question 2

Organization expenses of a corporation often include legal fees and promoter fees.

Accepted Answer

A) True 
 B)False

Question 3

Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record this dividend is:

Accepted Answer

A) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $135,000. 
B) Debit Retained Earnings $135,000; credit Cash $135,000. 
C) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $100,000; credit Paid-In Capital in Excess of Par Value, Common Stock $35,000. 
D) Debit Retained Earnings $100,000; credit Common Stock Dividend Distributable $100,000. 
E) No entry is made until the stock is issueD.Retained earnings: 50,000 shares * 10% × $27 = $135,000 
A) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $135,000. 
B) Debit Retained Earnings $135,000; credit Cash $135,000. 
C) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $100,000; credit Paid-In Capital in Excess of Par Value, Common Stock $35,000. 
D) Debit Retained Earnings $100,000; credit Common Stock Dividend Distributable $100,000. 
E) No entry is made until the stock is issueD.Retained earnings: 50,000 shares * 10% × $27 = $135,000

Question 4

Dividend yield is computed by dividing earnings per share by the market value per share.

Accepted Answer

A) True 
 B)False

Question 5

In the current year, Jacksonville Company has discovered a material prior-period error in its calculation of income. The company had incorrectly debited an asset costing $120,000 to an expense account. The related income tax expense was $42,000. This error should be reported on the current year Statement of Retained Earnings as a(n):

Accepted Answer

A) Increase in Retained Earnings of $162,000. 
B) Increase in Retained Earnings of $120,000. 
C) Decrease in Retained Earnings of $120,000. 
D) Increase in Retained Earnings of $78,000. 
E) Decrease in Retained Earnings of $78,000. 
A) Increase in Retained Earnings of $162,000. 
B) Increase in Retained Earnings of $120,000. 
C) Decrease in Retained Earnings of $120,000. 
D) Increase in Retained Earnings of $78,000. 
E) Decrease in Retained Earnings of $78,000.

Question 6

_______________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

Accepted Answer

Book value

Question 7

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

Accepted Answer

Dividend yield is the ratio of annual ca

Question 8

A corporation issued 5,000 shares of its $1 par value stock at $16 per share. The entry to record this transaction would be:

Accepted Answer

A) Debit Cash $80,000; credit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $75,000. 
B) Debit Cash $80,000; credit Common Stock $80,000. 
C) Debit Cash $80,000; credit Common Stock $5,000; credit Paid-in Capital in Excess of Par Value, Common Stock $75,000. 
D) Debit Treasury Stock $80,000; credit Cash $80,000. 
E) Debit Common Stock $80,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Cash $75,000. 
A) Debit Cash $80,000; credit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $75,000. 
B) Debit Cash $80,000; credit Common Stock $80,000. 
C) Debit Cash $80,000; credit Common Stock $5,000; credit Paid-in Capital in Excess of Par Value, Common Stock $75,000. 
D) Debit Treasury Stock $80,000; credit Cash $80,000. 
E) Debit Common Stock $80,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Cash $75,000.

Question 9

A company has $2,400,000 in stockholders' equity that includes 500 shares of $50 par value non-callable preferred stock outstanding and 250,000 shares of common stock outstanding. Calculate the book value per (1) preferred share, and (2) common share.

Accepted Answer

(1) Book value/preferred share

Question 10

A company has earnings per share of $9.60. Its dividend per share is $0.50, its market price per share is $110, and its book value per share is $96. Its price-earnings ratio equals:

Accepted Answer

A) 1.15. 
B) 0.87. 
C) 19.2. 
D) 10.0. 
E) 11.46. 
A) 1.15. 
B) 0.87. 
C) 19.2. 
D) 10.0. 
E) 11.46.

Question 11

A corporation may be authorized to issue both common and preferred stock.

Accepted Answer

A) True 
 B)False

Question 12

When a corporation has only one class of stock, the stock is called:

Accepted Answer

A) Preferred stock. 
B) Common stock. 
C) Par value stock. 
D) Stated value stock. 
E) No-par value stock. 
A) Preferred stock. 
B) Common stock. 
C) Par value stock. 
D) Stated value stock. 
E) No-par value stock.

Question 13

Slate Corporation had the following balances in its stockholders' equity accounts at December 31, 2016:   The following transactions occurred during 2017:   Based on the above information, prepare a statement of stockholders' equity for 2017. Use the form below.

Accepted Answer

@#IMG-DLM& *(20,000 - 1,000 +

Question 14

Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.   The amount of dividends paid to preferred and common shareholders in 2017 is:

Accepted Answer

A) $3,500 preferred; $2,500 common. 
B) $3,000 preferred; $3,000 common. 
C) $0 preferred; $6,000 common. 
D) $4,200 preferred; $1,800 common. 
E) $6,000 preferred; $0 common. 
A) $3,500 preferred; $2,500 common. 
B) $3,000 preferred; $3,000 common. 
C) $0 preferred; $6,000 common. 
D) $4,200 preferred; $1,800 common. 
E) $6,000 preferred; $0 common.

Question 15

A company made an error in calculating and reporting amortization expense in 2016. The error was discovered in 2017. The item should be reported as a prior period adjustment:

Accepted Answer

A) on the 2016 statement of retained earnings. 
B) on the 2016 income statement. 
C) on the 2017 statement of retained earnings. 
D) on the 2017 income statement. 
E) accounted for with a cumulative "catch-up" adjustment in 2017. 
A) on the 2016 statement of retained earnings. 
B) on the 2016 income statement. 
C) on the 2017 statement of retained earnings. 
D) on the 2017 income statement. 
E) accounted for with a cumulative "catch-up" adjustment in 2017.

Question 16

A corporation issued 5,000 shares of its no par common stock having a $1 stated value per share. The issue price was $10 per share. The entry to record this transaction would be:

Accepted Answer

A) Debit Cash $50,000; credit Paid-in Capital in Excess of Par Value, Common Stock $45,000; credit Common Stock $5,000. 
B) Debit Cash $50,000; credit Common Stock $50,000. 
C) Debit Common Stock $50,000; credit Cash $50,000. 
D) Debit Treasury Stock $50,000; credit Cash $50,000. 
E) Debit Common Stock $25,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $45,000. 
A) Debit Cash $50,000; credit Paid-in Capital in Excess of Par Value, Common Stock $45,000; credit Common Stock $5,000. 
B) Debit Cash $50,000; credit Common Stock $50,000. 
C) Debit Common Stock $50,000; credit Cash $50,000. 
D) Debit Treasury Stock $50,000; credit Cash $50,000. 
E) Debit Common Stock $25,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $45,000.

Question 17

A corporation is responsible for its own acts and debts because it is considered a ____________________________________.

Accepted Answer

separate l

Question 18

Book value per common share is computed by:

Accepted Answer

A) Multiplying the number of common shares outstanding times the market price per common share. 
B) Dividing total assets by the number of shares outstanding. 
C) Dividing stockholders' equity applicable to common shares by the number of common shares outstanding. 
D) Multiplying the number of common shares outstanding by par value per share. 
E) Dividing the number of common shares outstanding by stockholders' equity applicable to common shares. 
A) Multiplying the number of common shares outstanding times the market price per common share. 
B) Dividing total assets by the number of shares outstanding. 
C) Dividing stockholders' equity applicable to common shares by the number of common shares outstanding. 
D) Multiplying the number of common shares outstanding by par value per share. 
E) Dividing the number of common shares outstanding by stockholders' equity applicable to common shares.

Question 19

Common shareholders always share equally with all other shareholders in dividends.

Accepted Answer

A) True 
 B)False

Question 20

Stock that has been issued and is held by stockholders is ___________________ stock.

Accepted Answer

The answer of Stock that has been issued and is...

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

Organization expenses of a corporation often include legal fees and promoter fees.

Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record this dividend is:

Dividend yield is computed by dividing earnings per share by the market value per share.

_______________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

A corporation issued 5,000 shares of its $1 par value stock at $16 per share. The entry to record this transaction would be:

A company has $2,400,000 in stockholders' equity that includes 500 shares of $50 par value non-callable preferred stock outstanding and 250,000 shares of common stock outstanding. Calculate the book value per (1) preferred share, and (2) common share.

A company has earnings per share of $9.60. Its dividend per share is $0.50, its market price per share is $110, and its book value per share is $96. Its price-earnings ratio equals:

A corporation may be authorized to issue both common and preferred stock.

When a corporation has only one class of stock, the stock is called:

Slate Corporation had the following balances in its stockholders' equity accounts at December 31, 2016: The following transactions occurred during 2017: Based on the above information, prepare a statement of stockholders' equity for 2017. Use the form below.

A company made an error in calculating and reporting amortization expense in 2016. The error was discovered in 2017. The item should be reported as a prior period adjustment:

A corporation issued 5,000 shares of its no par common stock having a $1 stated value per share. The issue price was $10 per share. The entry to record this transaction would be:

A corporation is responsible for its own acts and debts because it is considered a ____________________________________.

Book value per common share is computed by:

Common shareholders always share equally with all other shareholders in dividends.

Stock that has been issued and is held by stockholders is ___________________ stock.

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

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

Organization expenses of a corporation often include legal fees and promoter fees.

Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record this dividend is:

Dividend yield is computed by dividing earnings per share by the market value per share.

_______________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

A corporation issued 5,000 shares of its $1 par value stock at $16 per share. The entry to record this transaction would be:

A company has $2,400,000 in stockholders' equity that includes 500 shares of $50 par value non-callable preferred stock outstanding and 250,000 shares of common stock outstanding. Calculate the book value per (1) preferred share, and (2) common share.

A company has earnings per share of $9.60. Its dividend per share is $0.50, its market price per share is $110, and its book value per share is $96. Its price-earnings ratio equals:

A corporation may be authorized to issue both common and preferred stock.

When a corporation has only one class of stock, the stock is called:

Slate Corporation had the following balances in its stockholders' equity accounts at December 31, 2016: The following transactions occurred during 2017: Based on the above information, prepare a statement of stockholders' equity for 2017. Use the form below.

A company made an error in calculating and reporting amortization expense in 2016. The error was discovered in 2017. The item should be reported as a prior period adjustment:

A corporation issued 5,000 shares of its no par common stock having a $1 stated value per share. The issue price was $10 per share. The entry to record this transaction would be:

A corporation is responsible for its own acts and debts because it is considered a ____________________________________.

Book value per common share is computed by:

Common shareholders always share equally with all other shareholders in dividends.

Stock that has been issued and is held by stockholders is ___________________ stock.

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