FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Reporting and Interpreting Stockholders Equity

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

Multiple Choice

Review LaterAdd Note

Review Later

Treasury stock is reported in the:

A) financing section of the income statement.
B) stockholders' equity section of the balance sheet.
C) liability section of the balance sheet.
D) operating section of the income statement.

E) B) and C)
F) B) and D)

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

Before dividends can be paid to common stockholders,if the preferred stock is _____,any ______ must be paid to the preferred stockholders.

A) cumulative; dividends in arrears
B) current; interest owed
C) cumulative; interest owed
D) managing; dividends

E) None of the above
F) B) and C)

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

Which of the following statements about stock options is not correct?

A company has outstanding 10 million shares of $2 par common stock and 1 million shares of $4 par preferred stock.The preferred stock has an 8% dividend rate.The company declares $300,000 in total dividends for the year.Which of the following is correct if the preferred stockholders only have a current dividend preference?

A corporation declared a stock dividend on November 1 and issued 9,000 shares of stock to its stockholders.Prior to the dividend,the balance in Retained Earnings was $850,000,the number of shares of $5 par value stock issued and outstanding was 60,000,and the market value of the stock was $12.This stock dividend will cause total stockholders' equity to:

Corporations can raise large amounts of money because:

On February 16,a company declares a 34¢ dividend to be paid on April 5.There are 1,900,000 shares of common stock issued and outstanding.The entry recorded by the company on February 16 includes a debit to:

On the date of record for a dividend,the company:

Income tax expense would be found on the income statement of a corporation,but not on the income statement of a sole proprietorship.

If a company's P/E ratio is 24 and the company's EPS is $1.50,then the company's stock price is:

When a stockholder sells its shares to another person for more than its original cost,the corporation:

A corporation's charter establishes the number of shares of stock that will be issued in an initial public offering (IPO).

A company issues 1 million shares of common stock with a par value of $0.02 for $15 a share.The entry to record this transaction includes a debit to Cash for:

Corporations will declare stock dividends in order to:

For a business to be considered a corporation:

The par value of stock indicates what the stock is worth.

Complete the table below by filling in the Formula blank with the letter that corresponds to the correct formula for each ratio and filling in the Interpretation blank with the letter that corresponds to the interpretation provided.Not all ratio formulas and interpretations will be used. Ratio Formulas A.365 ÷ Inventory Turnover B.(Sales - Cost of Goods Sold)÷ Sales C.Net Income ÷ Sales D.Net Operating Income ÷ Interest Expense E.(Net income - Preferred dividends)÷ Average number of common shares outstanding F.Total Liabilities ÷ Total Assets G.Current stock price (per share)÷ Earnings per Share H.(Net income - Preferred dividends)÷ Average common stockholders' equity Ratio Interpretations A.The portion of sales that is attributable to merchandise profit. B.Ability of a company to pay its short-term debts as they come due. C.The percent of each sales dollar that is left over after covering costs and expenses. D.How many times more than the current year's earnings investors are willing to pay for a company's common stock E.Ability of a company to quickly pay its short-term debts as they come due. F.The portion of a company's total financing that comes from debt. G.The amount of income generated for each share of common stock owned by stockholders H.How effectively a company is using its assets to generate revenue. I.The amount of income earned for each dollar of common stockholders' equity.

Contributed capital is found in the ______ section of the ______:

Choose the appropriate term to match the term and the definition.Not all definitions will be used. Term: 1._____ Corporation 2._____ Par Value 3._____ Growth Investment 4._____ LLC 5._____ Current Dividend Preference 6._____ Partnership 7._____ Market Value 8._____ Income Investment 9._____ Cumulative Dividend Preference 10._____ Sole Proprietorship Definition: A.When preferred stockholders are paid dividends before other stockholders. B.When stockholders prefer to receive dividends at the end of the year rather than each quarter. C.The current stock price. D.A company that issues stock on one of the major stock exchanges. E.An unincorporated business that is owned by a single individual. F.A stock that is currently selling for its original issue price. G.A company that has a separate legal identity from its owners. H.When companies are obligated to pay preferred stockholders past dividends not yet distributed before paying dividends to owners of common stock. I.The nominal value per share of stock set by the company's charter. J.Stock of companies that tend to reinvest earnings to provide for greater future sales and profits. K.A company that is like a partnership in nature except that it has limited liability. L.Stock of companies that tend to pay relatively high dividends compared to the stock price. M.An unincorporated business owned by two or more individuals.

A company declared a $0.80 per share cash dividend.The company has 100,000 shares authorized,45,000 shares issued,and 42,000 shares of common stock outstanding.What is the journal entry to record the dividend declaration?