Question 1

Corporations issue preferred stock to raise capital without sacrificing control of the corporation and/or to boost the return earned by common shareholders.

Accepted Answer

A) True 
 B)False

Question 2

The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:

Accepted Answer

A)  Dividend payout ratio.
B)  Dividend yield.
C)  Price-earnings ratio.
D)  Current yield.
E)  Earnings per share.F) A) and B)
G) B) and E)

Question 3

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:

Accepted Answer

A)  $ 100.
B)  $ 600.
C)  $1,000.
D)  $6,000.
E)  $7,000.F) A) and E)
G) B) and C)

Question 4

Prior to June 1,a company has never had any treasury stock transactions.A company repurchased 100 shares of its common stock on June 1 for $5,000.On July 1,it reissued 50 of these shares at $52 per share.On August 1,it reissued the remaining treasury shares at $49 per share.What is the balance in the Paid-in Capital,Treasury Stock account on August 2?

Accepted Answer

A)  $5,050.
B)  $2,600.
C)  $100.
D)  $50.
E)  $0.F) C) and D)
G) A) and E)

Question 5

What is a stock split?
 How is a stock split different from a stock dividend?

Accepted Answer

A stock split is the distribution of add...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Changes in accounting estimates are accounted for in current and future periods.

Accepted Answer

A) True 
 B)False

Question 8

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

Accepted Answer

A)  Convertible preferred stock.
B)  Callable preferred stock.
C)  Premium stock.
D)  Cumulative preferred stock.
E)  Participating preferred stock.F) None of the above
G) B) and D)

Question 9

A 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.F) All of the above
G) A) and B)

Question 10

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

Accepted Answer

A)  $31.71.
B)  $32.50.
C)  $32.75.
D)  $33.17.
E)  $60.00 F) A) and B)
G) A) and C)

Exam 13: Accounting for Corporations

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:

Correct Answer
verified

A 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:

Correct Answer
verified

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

Correct Answer
verified

What is a stock split? How is a stock split different from a stock dividend?

Correct Answer
verified
A stock split is the distribution of add...
View Answer

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

Correct Answer
Answered by ExamLex AI

Correct Answer
verified

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

Correct Answer
verified

Corporations issue preferred stock to raise capital without sacrificing control of the corporation and/or to boost the return earned by common shareholders.

Correct Answer
verified

Changes in accounting estimates are accounted for in current and future periods.

Correct Answer
verified

The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:

Correct Answer
verified

Exam 13: Accounting for Corporations

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:

Correct AnswerverifiedShow Answer

A 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:

Correct AnswerverifiedShow Answer

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

Correct AnswerverifiedShow Answer

What is a stock split? How is a stock split different from a stock dividend?

Correct AnswerverifiedA stock split is the distribution of add...View AnswerShow Answer

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

Correct AnswerAnswered by ExamLex AIShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Corporations issue preferred stock to raise capital without sacrificing control of the corporation and/or to boost the return earned by common shareholders.

Correct AnswerverifiedShow Answer

Changes in accounting estimates are accounted for in current and future periods.

Correct AnswerverifiedShow Answer

The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A stock split is the distribution of add...
View Answer

Correct Answer
Answered by ExamLex AI

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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