Question 1

When a corporation records a stock dividend,it decreases Retained Earnings for the par value of the stock.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following terms designates the number of shares of a corporation's stock currently held by stockholders?

Accepted Answer

A)  outstanding shares 
B)  authorized shares 
C)  treasury stock 
D)  issued shares 
A)  outstanding shares 
B)  authorized shares 
C)  treasury stock 
D)  issued shares

Question 3

Indicate whether each of the following statements is true or false.

Accepted Answer

The answer of Indicate whether each of the following statements...

Question 4

A small,closely-held corporation can avoid double taxation by electing S Corporation status.

Accepted Answer

A) True 
 B)False

Question 5

Calculate the number of shares outstanding after the stock dividends are issued.

Accepted Answer

A)  7,950 shares 
B)  53,000 shares 
C)  60,950 shares 
D)  79,500 shares 
A)  7,950 shares 
B)  53,000 shares 
C)  60,950 shares 
D)  79,500 shares

Question 6

Establishing a sole proprietorship generally requires the owner to get a charter from the state government.

Accepted Answer

A) True 
 B)False

Question 7

Explain the significance of a high price-earnings ratio.

Accepted Answer

A high price-earning

Question 8

Discuss a reason why a corporation might "split" its common stock.

Accepted Answer

A corporation may sp

Question 9

Houston Corporation has the following stock outstanding:   In 2012,Houston paid $330,000 in dividends.No dividends were paid in 2011 or 2010.
Required:
a)Compute the total amount of dividends that was paid to each class of stock.
b)Compute the amount of dividends per share for each class of stock.

Accepted Answer

a)To preferred shareholders: (3)(.05)(1,

Question 10

Reissuance of treasury stock for cash is what kind of transaction?

Accepted Answer

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

Question 11

Which of the following represents the normal sequence of items presented in the Stockholders' Equity section of a corporation's balance sheet?

Accepted Answer

A)  Stock accounts,Paid-in Capital in Excess accounts,Retained Earnings,Treasury Stock 
B)  Stock accounts,Paid-in Capital in Excess accounts,Treasury Stock,Retained Earnings 
C)  Stock accounts,Treasury Stock,Paid-in Capital in Excess accounts,Retained Earnings 
D)  Retained Earnings,Stock accounts,Paid-in Capital in Excess accounts,Treasury Stock 
A)  Stock accounts,Paid-in Capital in Excess accounts,Retained Earnings,Treasury Stock 
B)  Stock accounts,Paid-in Capital in Excess accounts,Treasury Stock,Retained Earnings 
C)  Stock accounts,Treasury Stock,Paid-in Capital in Excess accounts,Retained Earnings 
D)  Retained Earnings,Stock accounts,Paid-in Capital in Excess accounts,Treasury Stock

Question 12

A separate capital account is maintained for each partner in a partnership.

Accepted Answer

A) True 
 B)False

Question 13

A reason often given for a stock split is:

Accepted Answer

A)  to protect the interest of creditors. 
B)  to reduce the market price of the stock. 
C)  to increase the par value of the stock. 
D)  to absorb the treasury stock. 
A)  to protect the interest of creditors. 
B)  to reduce the market price of the stock. 
C)  to increase the par value of the stock. 
D)  to absorb the treasury stock.

Question 14

Anstendig Corp.has 250,000 shares of common stock authorized.It has issued 75,000 shares and has reacquired 12,000 of these shares as treasury stock.Anstendig subsequently declared a cash dividend of $3 per share.What is the total amount of dividends that were declared?

Accepted Answer

The answer of Anstendig Corp.has 250,000 shares of common stock...

Question 15

Which of the following is not normally a preference given to the holders of preferred stock?

Accepted Answer

A)  The right to vote before the common stockholders at the corporation's annual meeting. 
B)  The right to receive a specified amount of dividends prior to any being paid to common stockholders. 
C)  The right to receive preference over common stockholders as to the distribution of assets during a liquidation process. 
D)  All of these are normal preferences for preferred stockholders. 
A)  The right to vote before the common stockholders at the corporation's annual meeting. 
B)  The right to receive a specified amount of dividends prior to any being paid to common stockholders. 
C)  The right to receive preference over common stockholders as to the distribution of assets during a liquidation process. 
D)  All of these are normal preferences for preferred stockholders.

Question 16

Wiley Corporation issued 5,000 shares of no-par common stock for $32 per share.For this transaction,Common Stock should be credited (increased)for $160,000.

Accepted Answer

A) True 
 B)False

Question 17

Discuss possible reasons why a corporation may establish an appropriation of retained earnings.

Accepted Answer

Appropriations are sometimes required by

Question 18

The issuance of a stock dividend will

Accepted Answer

A)  not affect total equity. 
B)  increase retained earnings. 
C)  decrease total paid-in capital. 
D)  decrease net income. 
A)  not affect total equity. 
B)  increase retained earnings. 
C)  decrease total paid-in capital. 
D)  decrease net income.

Question 19

At the time that Stellar Company issued a 2-for-1 stock split,the company had 1,000 shares of $5 par value common stock outstanding.Stockholders' equity also included $14,000 of additional paid in capital in excess of par value and $20,000 of retained earnings.Immediately after the stock split,

Accepted Answer

A)  the balance in the common stock account would be $10,000. 
B)  the amount of paid-in capital would be $20,000. 
C)  the balance in the retained earning account would be $15,000. 
D)  the balance in the common stock account would be $5,000. 
A)  the balance in the common stock account would be $10,000. 
B)  the amount of paid-in capital would be $20,000. 
C)  the balance in the retained earning account would be $15,000. 
D)  the balance in the common stock account would be $5,000.

Question 20

Thad Rives is planning to invest in one of the following companies based on their average performance over the past five years,which is presented below.   If Thad is looking for a growth company (with earnings that are growing rapidly and probably will continue to grow rapidly),which one should he choose?

Accepted Answer

A)  Big Bat,Inc. 
B)  Bug-lite,Inc. 
C)  "Mood-blue,Inc". 
D)  Jones,Inc. 
A)  Big Bat,Inc. 
B)  Bug-lite,Inc. 
C)  "Mood-blue,Inc". 
D)  Jones,Inc.

When a corporation records a stock dividend,it decreases Retained Earnings for the par value of the stock.

Which of the following terms designates the number of shares of a corporation's stock currently held by stockholders?

Indicate whether each of the following statements is true or false.

A small,closely-held corporation can avoid double taxation by electing S Corporation status.

Calculate the number of shares outstanding after the stock dividends are issued.

Establishing a sole proprietorship generally requires the owner to get a charter from the state government.

Explain the significance of a high price-earnings ratio.

Discuss a reason why a corporation might "split" its common stock.

Houston Corporation has the following stock outstanding: In 2012,Houston paid $330,000 in dividends.No dividends were paid in 2011 or 2010. Required: a)Compute the total amount of dividends that was paid to each class of stock. b)Compute the amount of dividends per share for each class of stock.

Reissuance of treasury stock for cash is what kind of transaction?

Which of the following represents the normal sequence of items presented in the Stockholders' Equity section of a corporation's balance sheet?

A separate capital account is maintained for each partner in a partnership.

A reason often given for a stock split is:

Anstendig Corp.has 250,000 shares of common stock authorized.It has issued 75,000 shares and has reacquired 12,000 of these shares as treasury stock.Anstendig subsequently declared a cash dividend of $3 per share.What is the total amount of dividends that were declared?

Which of the following is not normally a preference given to the holders of preferred stock?

Wiley Corporation issued 5,000 shares of no-par common stock for $32 per share.For this transaction,Common Stock should be credited (increased)for $160,000.

Discuss possible reasons why a corporation may establish an appropriation of retained earnings.

The issuance of a stock dividend will

At the time that Stellar Company issued a 2-for-1 stock split,the company had 1,000 shares of $5 par value common stock outstanding.Stockholders' equity also included $14,000 of additional paid in capital in excess of par value and $20,000 of retained earnings.Immediately after the stock split,

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

When a corporation records a stock dividend,it decreases Retained Earnings for the par value of the stock.

Which of the following terms designates the number of shares of a corporation's stock currently held by stockholders?

Indicate whether each of the following statements is true or false.

A small,closely-held corporation can avoid double taxation by electing S Corporation status.

Calculate the number of shares outstanding after the stock dividends are issued.

Establishing a sole proprietorship generally requires the owner to get a charter from the state government.

Explain the significance of a high price-earnings ratio.

Discuss a reason why a corporation might "split" its common stock.

Houston Corporation has the following stock outstanding: In 2012,Houston paid $330,000 in dividends.No dividends were paid in 2011 or 2010. Required: a)Compute the total amount of dividends that was paid to each class of stock. b)Compute the amount of dividends per share for each class of stock.

Reissuance of treasury stock for cash is what kind of transaction?

Which of the following represents the normal sequence of items presented in the Stockholders' Equity section of a corporation's balance sheet?

A separate capital account is maintained for each partner in a partnership.

A reason often given for a stock split is:

Anstendig Corp.has 250,000 shares of common stock authorized.It has issued 75,000 shares and has reacquired 12,000 of these shares as treasury stock.Anstendig subsequently declared a cash dividend of $3 per share.What is the total amount of dividends that were declared?

Which of the following is not normally a preference given to the holders of preferred stock?

Wiley Corporation issued 5,000 shares of no-par common stock for $32 per share.For this transaction,Common Stock should be credited (increased)for $160,000.

Discuss possible reasons why a corporation may establish an appropriation of retained earnings.

The issuance of a stock dividend will

At the time that Stellar Company issued a 2-for-1 stock split,the company had 1,000 shares of $5 par value common stock outstanding.Stockholders' equity also included $14,000 of additional paid in capital in excess of par value and $20,000 of retained earnings.Immediately after the stock split,

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