Question 1

Which of the following would not be a reason for the market price of Bishop Corporation stock to decrease?

Accepted Answer

A)  Bishop's net income for the current year was lower than last year. 
B)  The general condition and future outlook of the economy are shaky. 
C)  There has been a recent decrease in key interest rates. 
D)  Investors expect Bishop's financial performance to decline in the future. 
A)  Bishop's net income for the current year was lower than last year. 
B)  The general condition and future outlook of the economy are shaky. 
C)  There has been a recent decrease in key interest rates. 
D)  Investors expect Bishop's financial performance to decline in the future.

Question 2

On February 2,2012,Barker's Pool Supply Corporation issued 900 shares of no-par stock for $7 per share.Within two hours of the issue,the stock's price jumped on the UMSL stock exchange to $11 per share.Which of the following answers describes the effect of the February 2,2012 transaction?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 3

One consequence of the Sarbanes-Oxley Act is that some of the largest corporations in the United States are taking their companies' stock off the stock exchanges.

Accepted Answer

A) True 
 B)False

Question 4

Articles of incorporation,prepared by a business that wishes to incorporate,normally include the corporation's name and purpose,its location,and provisions for capital stock.

Accepted Answer

A) True 
 B)False

Question 5

Indicate how each of the following transactions affects the financial statements model,below:
a)Issued 40,000 shares of common stock with a $20 par value for cash of $25 per share.
b)Purchased 400 shares of treasury stock (common stock)at $30 per share.
c)Resold 100 shares of the treasury stock at $35 per share.

Accepted Answer

The answer of Indicate how each of the following transactions...

Question 6

Hill Country Corporation has 90,000 shares of $10 par value common stock issued and outstanding.If Hill Country Corporation issued a 2-for-1 stock split,what dollar amount would be shown for common stock on the balance sheet after the stock split?

Accepted Answer

Before split: 90,000

Question 7

A partner is responsible for (liable for)his/her own actions and also for actions taken by another partner on behalf of the partnership.

Accepted Answer

A) True 
 B)False

Question 8

What kind of transaction is the declaration of a stock dividend?

Accepted Answer

A)  asset source transaction 
B)  claims exchange transaction 
C)  asset use transaction 
D)  asset exchange transaction 
A)  asset source transaction 
B)  claims exchange transaction 
C)  asset use transaction 
D)  asset exchange transaction

Question 9

The Harlan-Wells Company was started on January 1,2012 as a partnership.The initial investments from the two partners were $20,000 each.During 2012,the Harlan-Wells Company earned $30,000 in cash revenue and paid $20,000 in cash expenses and the partners withdrew $1,000 each for their personal use.The partnership agreement calls for equal sharing of net income or loss.Using only the above information,prepare an income statement,a capital statement,and a balance sheet for the Harlan-Wells Company.

Accepted Answer

The answer of The Harlan-Wells Company was started on January...

Question 10

Which answer would represent the financial statement presentation of stockholders equity after the following transactions? Issued 200 shares of $12 par value common stock for $25 a share.Five hundred shares are authorized.Purchased 75 shares of treasury stock at $22 a share.

Accepted Answer

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

Question 11

When a company purchases treasury stock:

Accepted Answer

A)  total equity decreases. 
B)  cash flow from investing activities decreases. 
C)  total assets are unaffected. 
D)  total assets increase. 
A)  total equity decreases. 
B)  cash flow from investing activities decreases. 
C)  total assets are unaffected. 
D)  total assets increase.

Question 12

Flynn Company issued 2,000 shares of $10 par value common stock at a market price of $16.As a result of this accounting event,total paid-in capital would

Accepted Answer

A)  increase by $12,000. 
B)  be unaffected by the event. 
C)  increase by $32,000. 
D)  increase by $20,000. 
A)  increase by $12,000. 
B)  be unaffected by the event. 
C)  increase by $32,000. 
D)  increase by $20,000.

Question 13

What is meant by "double taxation?" Which form of business organization is subject to double taxation?

Accepted Answer

Double taxation occurs when the same inc

Question 14

On July 1,2012,Gustafson Company appropriated retained earnings in the amount of $18,000 for a future remodeling project.On June 30,2012,the balance of Retained Earnings was $41,400 and the Cash balance was $21,600.Which of the following answers shows the effect of the appropriation of retained earnings on the financial statements?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 15

Madison Co.paid dividends of $3,000; $6,000; and $10,000 during 2010,2011 and 2012 respectively.The company had 500 shares of preferred stock outstanding with a $10 per share cumulative dividend.The amount of dividends received by the common shareholders during 2012 would be:

Accepted Answer

A)  $6,000. 
B)  $5,000. 
C)  $3,000. 
D)  $4,000. 
A)  $6,000. 
B)  $5,000. 
C)  $3,000. 
D)  $4,000.

Question 16

Bridge Corporation issued a 15% stock dividend on 20,000 outstanding shares of $10 stated value common stock.The distribution was made at the time the market value of the stock was $50 a share.How did this transaction affect the company's total stockholders' equity?

Accepted Answer

A)  The total balances in equity accounts increased by $150,000. 
B)  The sum of the balances in equity accounts increased by $30,000. 
C)  The sum of the balances in equity accounts decreased by $150,000. 
D)  Total stockholders' equity was not affected by this transaction. 
A)  The total balances in equity accounts increased by $150,000. 
B)  The sum of the balances in equity accounts increased by $30,000. 
C)  The sum of the balances in equity accounts decreased by $150,000. 
D)  Total stockholders' equity was not affected by this transaction.

Question 17

The term "Retained Earnings" is best explained by which of the following statements?

Accepted Answer

A)  Money set aside for the redemption of bonds payable. 
B)  A measure of equity generated by a corporation through its operating activities. 
C)  Cash retained in a separate bank account designated for emergency uses. 
D)  The difference between total revenue and total expenses in an accounting period. 
A)  Money set aside for the redemption of bonds payable. 
B)  A measure of equity generated by a corporation through its operating activities. 
C)  Cash retained in a separate bank account designated for emergency uses. 
D)  The difference between total revenue and total expenses in an accounting period.

Question 18

All corporations are subject to extensive government regulation.

Accepted Answer

A) True 
 B)False

Question 19

In which section of the balance sheet would Treasury Stock be reported?

Accepted Answer

Stockholde

Question 20

What are the characteristics of preferred stock?

Accepted Answer

Preferred stock generally does not carry

Which of the following would not be a reason for the market price of Bishop Corporation stock to decrease?

On February 2,2012,Barker's Pool Supply Corporation issued 900 shares of no-par stock for $7 per share.Within two hours of the issue,the stock's price jumped on the UMSL stock exchange to $11 per share.Which of the following answers describes the effect of the February 2,2012 transaction?

One consequence of the Sarbanes-Oxley Act is that some of the largest corporations in the United States are taking their companies' stock off the stock exchanges.

Articles of incorporation,prepared by a business that wishes to incorporate,normally include the corporation's name and purpose,its location,and provisions for capital stock.

Hill Country Corporation has 90,000 shares of $10 par value common stock issued and outstanding.If Hill Country Corporation issued a 2-for-1 stock split,what dollar amount would be shown for common stock on the balance sheet after the stock split?

A partner is responsible for (liable for)his/her own actions and also for actions taken by another partner on behalf of the partnership.

What kind of transaction is the declaration of a stock dividend?

Which answer would represent the financial statement presentation of stockholders equity after the following transactions? Issued 200 shares of $12 par value common stock for $25 a share.Five hundred shares are authorized.Purchased 75 shares of treasury stock at $22 a share.

When a company purchases treasury stock:

Flynn Company issued 2,000 shares of $10 par value common stock at a market price of $16.As a result of this accounting event,total paid-in capital would

What is meant by "double taxation?" Which form of business organization is subject to double taxation?

Madison Co.paid dividends of $3,000; $6,000; and $10,000 during 2010,2011 and 2012 respectively.The company had 500 shares of preferred stock outstanding with a $10 per share cumulative dividend.The amount of dividends received by the common shareholders during 2012 would be:

Bridge Corporation issued a 15% stock dividend on 20,000 outstanding shares of $10 stated value common stock.The distribution was made at the time the market value of the stock was $50 a share.How did this transaction affect the company's total stockholders' equity?

The term "Retained Earnings" is best explained by which of the following statements?

All corporations are subject to extensive government regulation.

In which section of the balance sheet would Treasury Stock be reported?

What are the characteristics of preferred stock?

An Introduction to Accounting

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Internal Controls,accounting for Cash,and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

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Exam 8: Proprietorships, partnerships, and Corporations

Which of the following would not be a reason for the market price of Bishop Corporation stock to decrease?

On February 2,2012,Barker's Pool Supply Corporation issued 900 shares of no-par stock for $7 per share.Within two hours of the issue,the stock's price jumped on the UMSL stock exchange to $11 per share.Which of the following answers describes the effect of the February 2,2012 transaction?

One consequence of the Sarbanes-Oxley Act is that some of the largest corporations in the United States are taking their companies' stock off the stock exchanges.

Articles of incorporation,prepared by a business that wishes to incorporate,normally include the corporation's name and purpose,its location,and provisions for capital stock.

Hill Country Corporation has 90,000 shares of $10 par value common stock issued and outstanding.If Hill Country Corporation issued a 2-for-1 stock split,what dollar amount would be shown for common stock on the balance sheet after the stock split?

A partner is responsible for (liable for)his/her own actions and also for actions taken by another partner on behalf of the partnership.

What kind of transaction is the declaration of a stock dividend?

Which answer would represent the financial statement presentation of stockholders equity after the following transactions? Issued 200 shares of $12 par value common stock for $25 a share.Five hundred shares are authorized.Purchased 75 shares of treasury stock at $22 a share.

When a company purchases treasury stock:

Flynn Company issued 2,000 shares of $10 par value common stock at a market price of $16.As a result of this accounting event,total paid-in capital would

What is meant by "double taxation?" Which form of business organization is subject to double taxation?

Madison Co.paid dividends of $3,000; $6,000; and $10,000 during 2010,2011 and 2012 respectively.The company had 500 shares of preferred stock outstanding with a $10 per share cumulative dividend.The amount of dividends received by the common shareholders during 2012 would be:

Bridge Corporation issued a 15% stock dividend on 20,000 outstanding shares of $10 stated value common stock.The distribution was made at the time the market value of the stock was $50 a share.How did this transaction affect the company's total stockholders' equity?

The term "Retained Earnings" is best explained by which of the following statements?

All corporations are subject to extensive government regulation.

In which section of the balance sheet would Treasury Stock be reported?

What are the characteristics of preferred stock?

An Introduction to Accounting

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Internal Controls,accounting for Cash,and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Filters