ACC 304 Week 10 Quiz – Strayer NEW
Week 10 Quiz 7: Chapter 15
STOCKHOLDERS’ EQUITY
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. A corporation is incorporated in only one state regardless of the number of states in which it operates.
This document summarizes a quiz on stockholders' equity concepts. It includes 42 multiple choice and true/false questions covering topics like common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, and dividends. The questions are conceptual in nature and test understanding of how these components are defined and reported on the balance sheet.
This document provides an ACC 401 Week 2 Quiz from Strayer University. It includes 30 multiple choice questions covering topics related to business combinations and the conceptual framework. It also includes 2 problems related to calculating reasonable offering prices for acquiring companies based on capitalizing excess earnings over normal rates of return on net assets.
1. The document discusses the nature and types of share capital for companies. It defines a company and lists its key characteristics such as separate legal entity status, perpetual existence, and limited liability for shareholders.
2. There are three main types of companies - private companies which are restricted in ownership and transfer of shares, public companies which have no such restrictions, and one person companies which can only have one member.
3. Shares are classified into preference shares, which get priority in dividends and capital repayment, and equity shares. Key terms related to share capital such as authorized, issued, called up, and paid up capital are also explained.
Issue of Shares-Comapanies Act 2013 (CS/CA/CMA/B.COM/LLB)The Legal Magister
This document discusses various provisions around issuing shares under the Companies Act 2013 in India. It covers different types of shares like equity shares, preference shares, sweat equity shares. It discusses rules around issuing shares at premium or discount, differential voting rights, further issue of shares, bonus shares, employee stock options. Key points include what constitutes share capital, types of preference shares, conditions for issuing shares with differential voting rights, prohibitions on issuing shares at discount, rules for issuing sweat equity shares and utilization of securities premium.
This document contains a true/false and multiple choice partnership reviewer with 57 true/false statements and 58 multiple choice questions about partnerships. It covers topics such as the definition of a partnership, characteristics of general partnerships, advantages and disadvantages of partnerships compared to corporations, admitting and withdrawing partners, partnership dissolution and liquidation. The reviewer is intended to assess a student's understanding of key concepts relating to partnerships.
1. Amalgamation is the combination of two or more companies into a new entity, where the combining companies cease to exist. Absorption and external reconstruction are other forms of business combination where an existing company takes over another company.
2. The objectives of amalgamation include achieving economies of scale, eliminating competition, building goodwill, risk diversification, and improved management effectiveness.
3. The procedure of amalgamation includes finalizing terms by boards, preparing a scheme of amalgamation, obtaining shareholder and regulatory approvals, forming a new company, transferring assets and liabilities, and liquidating transferor companies.
This document discusses holding companies and subsidiaries. It defines a holding company as one that acquires over 50% of another company's shares, making it a subsidiary. Advantages of holding companies include separate identities and financial reporting for subsidiaries, while disadvantages include potential manipulation and lack of minority shareholder protection. The Companies Act of 1956 provides the legal definition of a subsidiary. Consolidated financial statements must be prepared that combine the holding company and subsidiaries' balance sheets, income statements, and other reports. Capital profits, minority interests, investments, and other items require special treatment and calculations in consolidation.
The document discusses the concepts of holding companies, subsidiaries, and cross-border transactions. It defines a holding company as one that controls the board composition and holds over half of another company's equity shares. It provides an example of Twinstar Holdings acquiring shares of Sterlite. The document also discusses foreign holding companies, board of directors' duties and potential conflicts of interest, and an example case of Ferruccio Sias vs Jai Manga Ram Mukhi regarding conflict of interest on a company board.
This document summarizes a quiz on stockholders' equity concepts. It includes 42 multiple choice and true/false questions covering topics like common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, and dividends. The questions are conceptual in nature and test understanding of how these components are defined and reported on the balance sheet.
This document provides an ACC 401 Week 2 Quiz from Strayer University. It includes 30 multiple choice questions covering topics related to business combinations and the conceptual framework. It also includes 2 problems related to calculating reasonable offering prices for acquiring companies based on capitalizing excess earnings over normal rates of return on net assets.
1. The document discusses the nature and types of share capital for companies. It defines a company and lists its key characteristics such as separate legal entity status, perpetual existence, and limited liability for shareholders.
2. There are three main types of companies - private companies which are restricted in ownership and transfer of shares, public companies which have no such restrictions, and one person companies which can only have one member.
3. Shares are classified into preference shares, which get priority in dividends and capital repayment, and equity shares. Key terms related to share capital such as authorized, issued, called up, and paid up capital are also explained.
Issue of Shares-Comapanies Act 2013 (CS/CA/CMA/B.COM/LLB)The Legal Magister
This document discusses various provisions around issuing shares under the Companies Act 2013 in India. It covers different types of shares like equity shares, preference shares, sweat equity shares. It discusses rules around issuing shares at premium or discount, differential voting rights, further issue of shares, bonus shares, employee stock options. Key points include what constitutes share capital, types of preference shares, conditions for issuing shares with differential voting rights, prohibitions on issuing shares at discount, rules for issuing sweat equity shares and utilization of securities premium.
This document contains a true/false and multiple choice partnership reviewer with 57 true/false statements and 58 multiple choice questions about partnerships. It covers topics such as the definition of a partnership, characteristics of general partnerships, advantages and disadvantages of partnerships compared to corporations, admitting and withdrawing partners, partnership dissolution and liquidation. The reviewer is intended to assess a student's understanding of key concepts relating to partnerships.
1. Amalgamation is the combination of two or more companies into a new entity, where the combining companies cease to exist. Absorption and external reconstruction are other forms of business combination where an existing company takes over another company.
2. The objectives of amalgamation include achieving economies of scale, eliminating competition, building goodwill, risk diversification, and improved management effectiveness.
3. The procedure of amalgamation includes finalizing terms by boards, preparing a scheme of amalgamation, obtaining shareholder and regulatory approvals, forming a new company, transferring assets and liabilities, and liquidating transferor companies.
This document discusses holding companies and subsidiaries. It defines a holding company as one that acquires over 50% of another company's shares, making it a subsidiary. Advantages of holding companies include separate identities and financial reporting for subsidiaries, while disadvantages include potential manipulation and lack of minority shareholder protection. The Companies Act of 1956 provides the legal definition of a subsidiary. Consolidated financial statements must be prepared that combine the holding company and subsidiaries' balance sheets, income statements, and other reports. Capital profits, minority interests, investments, and other items require special treatment and calculations in consolidation.
The document discusses the concepts of holding companies, subsidiaries, and cross-border transactions. It defines a holding company as one that controls the board composition and holds over half of another company's equity shares. It provides an example of Twinstar Holdings acquiring shares of Sterlite. The document also discusses foreign holding companies, board of directors' duties and potential conflicts of interest, and an example case of Ferruccio Sias vs Jai Manga Ram Mukhi regarding conflict of interest on a company board.
1) Shares represent ownership in a company, with each share representing a unit of the company's total share capital. Share capital is the total funds raised by a company through the issue and sale of shares.
2) There are two main types of shares - preference shares and equity shares. Preference shares carry preferential rights to dividends and repayment of capital. Equity shares do not have preferential rights.
3) Within preference shares, there are various sub-types including cumulative, non-cumulative, participating, convertible, and redeemable preference shares. Equity shares represent the residual claim on a company's assets and earnings.
The document discusses the process of partnership liquidation, including dissolution, termination, and liquidation. It covers voluntary and involuntary liquidation, the accountant's responsibilities in managing the process, marshaling assets, creditor claims by priority, and the liquidation process. This includes closing books, allocating gains/losses, paying liabilities, and distributing remaining assets to partners through lump-sum or installment methods. Statements of realization and liquidation and cash distribution/safe payment plans are discussed as tools to outline the liquidation process and allocation of distributions.
CPT Accounts - Company Accounts Unit1 - Concept Sheet and Imp MCQsVXplain
The document defines and describes various types of companies under Indian law. It begins by defining a company as an incorporated association that is a separate legal entity from its members. It then describes key features of companies such as limited liability, perpetual existence, and transferable shares.
The document goes on to classify companies into several categories: statutory companies formed by legislation, government companies with majority government ownership, foreign companies operating in India, holding/subsidiary companies, registered companies, limited/unlimited liability companies, and public/private companies. It concludes by outlining requirements for company financial statements and related multiple choice questions.
AC102 PPT8 - Partnership Liquidation Lump Sum (PPT from Sir Leandro Fua) Carla
The document provides details about the liquidation of the partnership firm of Encina, Endrada, and Elina. It includes their statement of financial position before liquidation begins and statements of liquidation showing the realization of assets, distribution of gains or losses, payment of liabilities, and distribution of cash to partners under different scenarios of asset sale prices and treatment of capital deficiencies.
This document provides information on various aspects of companies including:
- Minimum and maximum number of members for private and public companies.
- Minimum capital requirements for private and public companies.
- Interest rates on calls in advance and arrears.
- Definitions and sections of the Companies Act related to companies.
- Characteristics of a company including limited liability, perpetual succession, and more.
- Types of companies such as statutory, guarantee, deemed public, and chartered companies.
- Quorum requirements and minimum number of directors for private and public companies.
- Capital elements that are and are not shown on a company's balance sheet.
- Requirements for issuing shares at a premium or discount
Redemption of debentures by N.Bala Murali Krishnabala13128
1. Redemption of debentures means repaying the amount owed to debenture holders when the debentures mature. There are various conditions that must be met like timing of payment, amount to be paid, mode of payment, and source of funds.
2. Companies must maintain a Debenture Redemption Reserve (DRR) to ensure they have adequate funds for redemption. The DRR is created out of profits and maintained until all debentures are redeemed.
3. Debentures can be redeemed through lump sum payment on maturity, in installments by lottery, or by purchasing debentures on the open market for cancellation. Journal entries are passed
Retained earnings represent undistributed corporate earnings. They are divided into appropriated and unappropriated portions. Appropriated retained earnings are set aside for specific purposes, while unappropriated retained earnings are available for distribution as dividends. Common appropriations include those for treasury shares, bond redemption, share capital redemption, and plant expansion. The statement of changes in shareholders' equity reports changes in capital, retained earnings, and other equity accounts over a period.
Accounting for issue of shares and loan notesItisha Sharma
The document discusses various aspects of accounting for share capital including:
1) Definitions of types of share capital such as authorized, issued, subscribed, called up, and paid up capital.
2) The process of issuing shares which includes issuing a prospectus, receiving applications, and allotting shares.
3) The nature and classes of shares including preference shares which have preferential rights to dividends and repayment of capital, and equity shares which do not have preferential rights.
4) Journal entries for various transactions related to share capital such as receiving application money, allotting shares, calling capital, and receiving call money.
Companies earn revenue from sales and other operations which is used to pay expenses, interest on borrowed capital, and taxes. Any remaining amount is profit which can be used to pay dividends to shareholders or retain in reserves. Dividends are distributions of a company's profits to shareholders that are recommended by the board of directors and approved by shareholders. They are considered a reward or return on the shareholders' investment in the company and are paid out of current year profits or retained earnings.
Holding company accounts and consolidated Balance SheetAugustin Bangalore
1. The document discusses concepts related to holding companies including analysis of capital profits, calculation of capital reserve/goodwill, treatment of minority interest, and preparation of consolidated balance sheets.
2. Capital profits refer to profits of a subsidiary earned prior to acquisition by the holding company. Revenue profits are earned after the acquisition date.
3. In a consolidated balance sheet, common transactions between the holding company and subsidiary like bills receivable/payable are eliminated to show only balances with outside parties.
The document discusses various aspects of issuing shares by a company. It defines key terms like shares, share capital, types of shares and shareholder rights. It explains the different types of shares a company can issue such as preference shares, equity shares, redeemable shares, etc. It also discusses the different ways shares can be issued including at par value, at a premium or at a discount. The capital structure of a company and terms like authorized capital, issued capital, subscribed capital and paid up capital are also summarized.
Debentures are a type of loan that companies use to borrow money from investors. They function similarly to bonds but are considered part of the company's capital rather than debt. The document discusses the key differences between debentures and shares, including how debentures are presented on the balance sheet, the rights of debenture holders versus shareholders, and priority of payment. It also categorizes debentures based on security, redemption, negotiability, convertibility, priority, and interest rate. The accounting treatment of debentures issued as collateral security is explained.
This document discusses various journal entries related to share capital transactions of a company. It begins by explaining the preparation of cash book and journal entries for share issue expenses. It then provides problems and solutions involving journal entries for issue of shares payable in installments, oversubscription and undersubscription of shares, issue of different classes of shares, and treatment of fractional shares and calls in arrears. It also discusses the presentation of share capital in the company's balance sheet as per the Companies Act.
The document provides an overview of accounting practices related to consolidation of financial statements for holding companies and their subsidiaries. It defines key terms like holding company, subsidiary, minority interest, and pre-acquisition profit/loss. It also describes the legal requirements for disclosure in a holding company's financial statements and the process for consolidating the balance sheets and income statements of a holding company and its subsidiaries.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
1. The document is a quiz for an accounting course covering topics related to stockholders' equity. It includes 42 multiple choice and true/false questions about concepts such as common stock, preferred stock, treasury stock, retained earnings, dividends, and accounting for stock transactions.
2. The questions cover how these various components of stockholders' equity are defined, classified, and accounted for on the financial statements. For example, it asks about how treasury stock purchases and sales are recorded and how this affects retained earnings and paid-in capital.
3. The quiz aims to test students' understanding of the key terminology and accounting treatments related to presenting a corporation's stockholders' equity section of the balance sheet
1. The document is a quiz for an accounting course covering topics related to stockholders' equity. It includes 42 multiple choice and true/false questions about concepts such as common stock, preferred stock, treasury stock, retained earnings, dividends, and accounting for stock transactions.
2. The questions cover how these various components of stockholders' equity are defined, classified, and accounted for on the financial statements. Correct answers are provided for the true/false questions.
3. The multiple choice questions test understanding of how to record various stock transactions such as stock issuances, reacquisitions, and sales of treasury stock under both the cost and par value methods of accounting.
This document contains a quiz on stockholders' equity concepts from chapter 15. It includes 66 multiple choice questions covering topics like common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, stock dividends, and calculations related to stockholders' equity. The questions are designed to test the reader's understanding of how various transactions impact the accounting for stockholders' equity.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
1) Shares represent ownership in a company, with each share representing a unit of the company's total share capital. Share capital is the total funds raised by a company through the issue and sale of shares.
2) There are two main types of shares - preference shares and equity shares. Preference shares carry preferential rights to dividends and repayment of capital. Equity shares do not have preferential rights.
3) Within preference shares, there are various sub-types including cumulative, non-cumulative, participating, convertible, and redeemable preference shares. Equity shares represent the residual claim on a company's assets and earnings.
The document discusses the process of partnership liquidation, including dissolution, termination, and liquidation. It covers voluntary and involuntary liquidation, the accountant's responsibilities in managing the process, marshaling assets, creditor claims by priority, and the liquidation process. This includes closing books, allocating gains/losses, paying liabilities, and distributing remaining assets to partners through lump-sum or installment methods. Statements of realization and liquidation and cash distribution/safe payment plans are discussed as tools to outline the liquidation process and allocation of distributions.
CPT Accounts - Company Accounts Unit1 - Concept Sheet and Imp MCQsVXplain
The document defines and describes various types of companies under Indian law. It begins by defining a company as an incorporated association that is a separate legal entity from its members. It then describes key features of companies such as limited liability, perpetual existence, and transferable shares.
The document goes on to classify companies into several categories: statutory companies formed by legislation, government companies with majority government ownership, foreign companies operating in India, holding/subsidiary companies, registered companies, limited/unlimited liability companies, and public/private companies. It concludes by outlining requirements for company financial statements and related multiple choice questions.
AC102 PPT8 - Partnership Liquidation Lump Sum (PPT from Sir Leandro Fua) Carla
The document provides details about the liquidation of the partnership firm of Encina, Endrada, and Elina. It includes their statement of financial position before liquidation begins and statements of liquidation showing the realization of assets, distribution of gains or losses, payment of liabilities, and distribution of cash to partners under different scenarios of asset sale prices and treatment of capital deficiencies.
This document provides information on various aspects of companies including:
- Minimum and maximum number of members for private and public companies.
- Minimum capital requirements for private and public companies.
- Interest rates on calls in advance and arrears.
- Definitions and sections of the Companies Act related to companies.
- Characteristics of a company including limited liability, perpetual succession, and more.
- Types of companies such as statutory, guarantee, deemed public, and chartered companies.
- Quorum requirements and minimum number of directors for private and public companies.
- Capital elements that are and are not shown on a company's balance sheet.
- Requirements for issuing shares at a premium or discount
Redemption of debentures by N.Bala Murali Krishnabala13128
1. Redemption of debentures means repaying the amount owed to debenture holders when the debentures mature. There are various conditions that must be met like timing of payment, amount to be paid, mode of payment, and source of funds.
2. Companies must maintain a Debenture Redemption Reserve (DRR) to ensure they have adequate funds for redemption. The DRR is created out of profits and maintained until all debentures are redeemed.
3. Debentures can be redeemed through lump sum payment on maturity, in installments by lottery, or by purchasing debentures on the open market for cancellation. Journal entries are passed
Retained earnings represent undistributed corporate earnings. They are divided into appropriated and unappropriated portions. Appropriated retained earnings are set aside for specific purposes, while unappropriated retained earnings are available for distribution as dividends. Common appropriations include those for treasury shares, bond redemption, share capital redemption, and plant expansion. The statement of changes in shareholders' equity reports changes in capital, retained earnings, and other equity accounts over a period.
Accounting for issue of shares and loan notesItisha Sharma
The document discusses various aspects of accounting for share capital including:
1) Definitions of types of share capital such as authorized, issued, subscribed, called up, and paid up capital.
2) The process of issuing shares which includes issuing a prospectus, receiving applications, and allotting shares.
3) The nature and classes of shares including preference shares which have preferential rights to dividends and repayment of capital, and equity shares which do not have preferential rights.
4) Journal entries for various transactions related to share capital such as receiving application money, allotting shares, calling capital, and receiving call money.
Companies earn revenue from sales and other operations which is used to pay expenses, interest on borrowed capital, and taxes. Any remaining amount is profit which can be used to pay dividends to shareholders or retain in reserves. Dividends are distributions of a company's profits to shareholders that are recommended by the board of directors and approved by shareholders. They are considered a reward or return on the shareholders' investment in the company and are paid out of current year profits or retained earnings.
Holding company accounts and consolidated Balance SheetAugustin Bangalore
1. The document discusses concepts related to holding companies including analysis of capital profits, calculation of capital reserve/goodwill, treatment of minority interest, and preparation of consolidated balance sheets.
2. Capital profits refer to profits of a subsidiary earned prior to acquisition by the holding company. Revenue profits are earned after the acquisition date.
3. In a consolidated balance sheet, common transactions between the holding company and subsidiary like bills receivable/payable are eliminated to show only balances with outside parties.
The document discusses various aspects of issuing shares by a company. It defines key terms like shares, share capital, types of shares and shareholder rights. It explains the different types of shares a company can issue such as preference shares, equity shares, redeemable shares, etc. It also discusses the different ways shares can be issued including at par value, at a premium or at a discount. The capital structure of a company and terms like authorized capital, issued capital, subscribed capital and paid up capital are also summarized.
Debentures are a type of loan that companies use to borrow money from investors. They function similarly to bonds but are considered part of the company's capital rather than debt. The document discusses the key differences between debentures and shares, including how debentures are presented on the balance sheet, the rights of debenture holders versus shareholders, and priority of payment. It also categorizes debentures based on security, redemption, negotiability, convertibility, priority, and interest rate. The accounting treatment of debentures issued as collateral security is explained.
This document discusses various journal entries related to share capital transactions of a company. It begins by explaining the preparation of cash book and journal entries for share issue expenses. It then provides problems and solutions involving journal entries for issue of shares payable in installments, oversubscription and undersubscription of shares, issue of different classes of shares, and treatment of fractional shares and calls in arrears. It also discusses the presentation of share capital in the company's balance sheet as per the Companies Act.
The document provides an overview of accounting practices related to consolidation of financial statements for holding companies and their subsidiaries. It defines key terms like holding company, subsidiary, minority interest, and pre-acquisition profit/loss. It also describes the legal requirements for disclosure in a holding company's financial statements and the process for consolidating the balance sheets and income statements of a holding company and its subsidiaries.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
1. The document is a quiz for an accounting course covering topics related to stockholders' equity. It includes 42 multiple choice and true/false questions about concepts such as common stock, preferred stock, treasury stock, retained earnings, dividends, and accounting for stock transactions.
2. The questions cover how these various components of stockholders' equity are defined, classified, and accounted for on the financial statements. For example, it asks about how treasury stock purchases and sales are recorded and how this affects retained earnings and paid-in capital.
3. The quiz aims to test students' understanding of the key terminology and accounting treatments related to presenting a corporation's stockholders' equity section of the balance sheet
1. The document is a quiz for an accounting course covering topics related to stockholders' equity. It includes 42 multiple choice and true/false questions about concepts such as common stock, preferred stock, treasury stock, retained earnings, dividends, and accounting for stock transactions.
2. The questions cover how these various components of stockholders' equity are defined, classified, and accounted for on the financial statements. Correct answers are provided for the true/false questions.
3. The multiple choice questions test understanding of how to record various stock transactions such as stock issuances, reacquisitions, and sales of treasury stock under both the cost and par value methods of accounting.
This document contains a quiz on stockholders' equity concepts from chapter 15. It includes 66 multiple choice questions covering topics like common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, stock dividends, and calculations related to stockholders' equity. The questions are designed to test the reader's understanding of how various transactions impact the accounting for stockholders' equity.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes 27 multiple choice questions covering topics from chapters 15 and 16 such as stock dividends, stock splits, treasury stock transactions, and theories of equity. It also includes a link to purchase the quiz answers in order to achieve an A grade.
The document appears to be a practice exam for an accounting course (ACC 423) covering various topics related to accounting for debt, equity, earnings per share, investments, and other accounting issues. It contains 24 multiple choice questions testing understanding of accounting treatments for issues like convertible debt, preferred stock conversions, treasury stock, diluted earnings per share, stock dividends, investments, and more. The exam provides answers that can be downloaded separately.
The document appears to be a practice exam for an accounting course (ACC 423) covering various topics related to accounting for debt, equity, earnings per share, investments, and other accounting issues. It contains 24 multiple choice questions testing understanding of accounting treatments for issues like convertible debt, preferred stock conversions, treasury stock, diluted earnings per share, stock dividends, investments, and more. The exam provides answers that can be downloaded separately.
The document appears to be a practice exam for an accounting course (ACC 423) final exam. It contains 30 multiple choice questions covering various accounting topics like accounting for debt, equity, earnings per share, investments, pensions, income taxes, and financial instruments. The questions test understanding of accounting principles for different transactions and financial statement elements.
Corporate Finance Canadian 7th Edition Jaffe Test BankDaceyDaceys
Full download : http://alibabadownload.com/product/corporate-finance-canadian-7th-edition-jaffe-test-bank/ Corporate Finance Canadian 7th Edition Jaffe Test Bank
This standard provides guidance on calculating and presenting earnings per share (EPS). It defines key terms like dilution, contingent shares, and potential ordinary shares.
The standard outlines how to calculate basic EPS by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding. It also provides guidance on adjusting profit for items like preference dividends.
For diluted EPS, profit is adjusted for the effects of all dilutive potential ordinary shares. The weighted average number of shares is increased by additional shares from converting dilutive potential ordinary shares. Dilutive potential shares are included in the calculation if their conversion would decrease EPS.
FINC 5880 - Final ExamMultiple ChoiceIdentify the choice.docxvoversbyobersby
FINC 5880 - Final Exam
Multiple Choice
Identify the choice that best completes the statement or answers the question
l. Poff lndustries'stock currently sells for $120 a share. You own 100 shares of the stock. The company is
contemplating a 2-for-l stock split. Which of the following best describes what your position will be after such
a split takes place?
a. You will have 200 shares of stock, and the stock will trade at or near $60 a share.
b. You will have 100 shares of stock, and the stock will trade at or near $60 a share.
c. You will have 50 shares of stock, and the stock will trade at or near $120 a share.
d. You will have 50 shares of stock, and the stock will trade at or near $60 a share.
e. You will have 200 shares of stock, and the stock will trade at or near $120 a share.
2. Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio
is decreased. Their argument is based on the assumption that
a. investors require that the dividend yield and capital gains yield equal a constant.
b. capital gains are taxed at a higher rate than dividends.
c. investors view dividends as being less risky than potential future capital gains.
d. investors value a dollar of expected capital gains more highly than a dollar of expected
dividends because of the lower tax rate on capital gains.
e. investors are indifferent between dividends and capital gains.
3. Which of the following should gg! influence a firm's dividend policy decision?
a. A strong preference by most shareholders for current cash income versus capital gains.
b. Constraints imposed by the firm's bond indenture.
c. The fact that much of the firm's equipment has been leased rather than bought and owned.
d. The fact that Congress is considering changes in the tax law regarding the taxation of
dividends versus capital gains.
e. The firm's ability to accelerate or delay investment projects.
4. Which of the following statements about dividend policies is correct?
a. One reason that companies tend to avoid stock repurchases is that dividend payments are
taxed at a lower rate than gains on stock repurchases.
b. One advantage of dividend reinvestment plans is that they allow shareholders to avoid
paying taxes on the dividends that they choose to reinvest.
c. One key advantage of a residual dividend policy is that it enables a company to follow a
stable dividend policy.
d. The clientele effect suggests that companies should follow a stable dividend policy.
e. Modigliani and Miller argue that investors prefer dividends to capital gains because
dividends are more certain than capital gains. They call this the "bird-in-the hand" effect.
5. The projected capital budget of Kandell Corporation is $1,000,000, its target capital structure is 60% debt and
40%o equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what
total dividends, if any, will it pay out?
a. $122,176
b. $128,606
c. $135,375
d. $ ...
Strayer university acc 304 week 7 chapter 12 quiz (all possible questions) newshyaminfotech
ACC 304 Week 7 Quiz – Strayer NEW
Week 7 Quiz 4: Chapter 12
INTANGIBLE ASSETS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. Intangible assets derive their value from the right (claim) to receive cash in the future.
2. Internally created intangibles are recorded at cost.
This document outlines Accounting Standard 20 on earnings per share (EPS) in India. It provides definitions and guidelines for calculating basic EPS and diluted EPS. Basic EPS is calculated by dividing net profit by the weighted average number of outstanding shares. Diluted EPS is also required to be disclosed, though small and medium companies are exempt from this requirement. The standard aims to improve comparability of financial performance across companies and periods.
This document outlines the contents of a corporate accounting course. The 5 units cover topics like issue of shares, underwriting and redemption of preference shares, issue of debentures, valuation methods, company final accounts, and amalgamation.
Key points from Unit 1 include definitions of shares and types of shares, the procedure for issuing shares including prospectus, minimum subscription, allotment, and calls. Journal entries are provided for issues of shares at par, premium and discount. Forfeiture and reissue of shares is also covered.
Redemption of preference shares is discussed, noting the provisions under company law. Capital redemption reserve is explained as a reserve created out of profits when preference shares are redeemed from profits
This document discusses various aspects of issuing shares by a company, including:
1) It defines key share capital terms like authorized capital, issued capital, subscribed capital, called-up capital, and paid-up capital.
2) It describes the types of shares a company can issue and the procedures for issuing shares, including prospectus, application, allotment, calls and accounting entries.
3) It covers concepts like forfeiture of shares, issue of bonus shares, and rights shares.
University of Maryland University Coll.docxjoyjonna282
University of Maryland University College
ACCT221 Principles of Accounting II Instructor: Anita Doherty
MID-TERM EXAM
Multiple Choice (2 points each)
1. Which one of the following is not necessary in order for a
corporation to pay a cash dividend?
a. Approval of stockholders
b. Adequate cash
c. Declaration of dividends by the board of directors
d. Retained earnings
2. Which one of the following events would not require a formal journal
entry on a corporation's books?
a. 100% stock dividend
b. 2 for 1 stock split
c. 2% stock dividend
d. $1 per share cash dividend
3. Buick, Inc. has 5,000 shares of 6%, $100 par value, noncumulative
preferred stock and 100,000 shares of $1 par value common stock
outstanding at December 31, 2012, and December 31, 2013. The board
of directors declared and paid a $20,000 dividend in 2012. In 2013,
$40,000 of dividends are declared and paid. What are the dividends
received by the preferred and common shareholders in 2013?
Preferred Common
————————— ———————
a. $0 $40,000
b. $30,000 $10,000
c. $20,000 $20,000
d. $40,000 $0
4. A prior period adjustment that corrects income of a prior period
requires that an entry be made to
a. an income statement account.
b. a current year revenue or expense account.
c. an asset account.
d. the retained earnings account
5. The discontinued operations section of the income statement refers
to
a. discontinuance of a product line.
b. the income or loss on products that have been completed and sold.
c. obsolete equipment and discontinued inventory items.
d. the disposal of a significant segment of a business.
6. Indicate the circumstances under which an item would be classified
as an extraordinary item on the income statement.
Unusual in Nature Infrequent in Occurrence
—————————————————
a. Yes No
b. No Yes
c. Yes Yes
d. No No
7. From the standpoint of the issuing company, a disadvantage of using
bonds as a means of long-term financing is that
a. bond interest is deductible for tax purposes.
b. interest must be paid on a periodic basis regardless of earnings.
c. income to stockholders may increase as a result of trading on the
equity.
d. the bondholders do not have voting rights.
8. Bonds that are secured by real estate are termed
a. mortgage bonds.
b. serial bonds.
c. debentures.
d. bearer bonds.
9. The contractual interest rate is always stated as a(n)
a. monthly rate.
b. daily rate.
c. semiannual rate.
d. annual rate.
10. If the market interest rate is grea ...
The document appears to be a quiz on stockholders' equity and various aspects of corporate finance. It contains 15 multiple choice questions testing understanding of rights of stockholders, characteristics of corporate form, categories of stockholders' equity, accounting entries related to treasury stock and dividends, features and types of preferred stock, and calculations related to returns on equity. The questions cover topics such as additional paid-in capital, retained earnings, treasury stock, cash vs stock dividends, cumulative vs non-cumulative preferred stock, and computations of earnings per share and returns on equity.
Strayer university acc 304 week 9 chapter 13 and chapter 14 quiz (all possibl...shyaminfotech
ACC 304 Week 9 Quiz – Strayer NEW
Week 9 Quiz 5: Chapter 13, Quiz 6: Chapter 14
CURRENT LIABILITIES AND CONTINGENCIES
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. A zero-interest-bearing note payable that is issued at a discount will not result in any interest expense being recognized.
Strayer university acc 304 week 4 chapter 11 homework newshyaminfotech
ACC 304 Week 4 Chapter 11 Homework
1) Lockard Company purchased machinery on January 1, 2014, for $102,960. The machinery is estimated to have a salvage value of $10,296 after a useful life of 8 years.
2) Compute 2014 depreciation expense using the double-declining-balance method.
3) Compute 2014 depreciation expense using the double-declining-balance method,
Strayer university acc 304 week 4 chapter 10 quiz (all possible questions) newshyaminfotech
ACC 304 Week 4 Quiz – Strayer NEW
Week 4 Quiz 3: Chapter 10
ACQUISITION AND DISPOSITION OF PROPERTY, PLANT, AND EQUIPMENT
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. Assets classified as Property, Plant, and Equipment can be either acquired for use in operations, or acquired for resale.
Strayer university acc 304 week 3 chapter 9 quiz (all possible questions) newshyaminfotech
ACC 304 Week 3 Chapter 9 Quiz (All Possible Questions) NEW
1. A company should abandon the historical cost principle when the future utility of the inventory item falls below its original cost.
2. The lower-of-cost-or-market method is used for inventory despite being less conservative than valuing inventory at market value.
3. The purpose of the “floor” in lower-of-cost-or-market considerations is to avoid overstating inventory.
Strayer university acc 304 week 2 chapter 8 quiz (all possible questions) newshyaminfotech
ACC 304 Week 2 Quiz – Strayer NEW
CHAPTER 8
VALUATION OF INVENTORIES:A COST-BASIS APPROACH
IFRS questions are available at the end of this chapter.
TRUE FALSE—Conceptual
1. A manufacturing concern would report the cost of units only partially processed as inventory in the balance sheet.
Strayer university acc 304 final exam part 2 (2 sets) newshyaminfotech
ACC 304 Final Exam Part 2 (2 Sets) 1
1) On January 1, 2015, Piper Co. issued ten-year bonds with a face value of $3,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:
Present value of 1 for 10 periods at 10% .386
Present value of 1 for 10 periods at 12% .322
Present value of 1 for 20 periods at 5% .377
Present value of 1 for 20 periods at 6% .312
Present value of annuity for 10 periods at 10% 6.145
Strayer university acc 304 final exam part 1 (3 sets) newshyaminfotech
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was $100.
Strayer cis 558 week 10 term paper managing an it infrastructure auditshyaminfotech
This document outlines a term paper assignment for an IT infrastructure audit. It consists of four sections: an internal IT audit policy, a management plan, a project plan, and a disaster recovery plan. The paper provides background information on the organization being audited, which is a large national retailer. It describes characteristics of the organization's IT infrastructure and systems. It provides requirements and guidelines for each section of the paper, including developing an internal audit policy, explaining the management plan for conducting audits, creating a project plan using Microsoft Project, and developing a disaster recovery plan.
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This document contains a practice exam for the UOP FIN 370 course with 60 multiple choice questions covering topics like the cash cycle, time value of money, capital budgeting, cost of capital, and financial statement analysis. An online resource is provided for additional practice exams.
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DEVRY ACCT 346 Week 4 Midterm 1
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1. Question : (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for
2. Question : TCO 1) Which of the following statements regarding fixed costs is true?
3. Question : TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?
4. Question :(TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much is the budgeted variable cost per unit?
ACCT 346 Midterm Set 1 (New)
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ACCT 346 Midterm Set 1 (New)
Multiple Choice 10
Short 4
1. (TCO 1) Which of the following is NOT a difference between Financial Accounting and Managerial Accounting? (Points : 7)
Financial Accounting is concerned with the past, while Managerial Accounting is concerned with the future.
Managerial Accounting uses more non-monetary information than Financial Accounting.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
A Visual Guide to 1 Samuel | A Tale of Two HeartsSteve Thomason
These slides walk through the story of 1 Samuel. Samuel is the last judge of Israel. The people reject God and want a king. Saul is anointed as the first king, but he is not a good king. David, the shepherd boy is anointed and Saul is envious of him. David shows honor while Saul continues to self destruct.
How Barcodes Can Be Leveraged Within Odoo 17Celine George
In this presentation, we will explore how barcodes can be leveraged within Odoo 17 to streamline our manufacturing processes. We will cover the configuration steps, how to utilize barcodes in different manufacturing scenarios, and the overall benefits of implementing this technology.
This presentation was provided by Racquel Jemison, Ph.D., Christina MacLaughlin, Ph.D., and Paulomi Majumder. Ph.D., all of the American Chemical Society, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...indexPub
The recent surge in pro-Palestine student activism has prompted significant responses from universities, ranging from negotiations and divestment commitments to increased transparency about investments in companies supporting the war on Gaza. This activism has led to the cessation of student encampments but also highlighted the substantial sacrifices made by students, including academic disruptions and personal risks. The primary drivers of these protests are poor university administration, lack of transparency, and inadequate communication between officials and students. This study examines the profound emotional, psychological, and professional impacts on students engaged in pro-Palestine protests, focusing on Generation Z's (Gen-Z) activism dynamics. This paper explores the significant sacrifices made by these students and even the professors supporting the pro-Palestine movement, with a focus on recent global movements. Through an in-depth analysis of printed and electronic media, the study examines the impacts of these sacrifices on the academic and personal lives of those involved. The paper highlights examples from various universities, demonstrating student activism's long-term and short-term effects, including disciplinary actions, social backlash, and career implications. The researchers also explore the broader implications of student sacrifices. The findings reveal that these sacrifices are driven by a profound commitment to justice and human rights, and are influenced by the increasing availability of information, peer interactions, and personal convictions. The study also discusses the broader implications of this activism, comparing it to historical precedents and assessing its potential to influence policy and public opinion. The emotional and psychological toll on student activists is significant, but their sense of purpose and community support mitigates some of these challenges. However, the researchers call for acknowledging the broader Impact of these sacrifices on the future global movement of FreePalestine.
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
Strayer university acc 304 week 10 chapter 15 quiz (all possible questions) new
1. Strayer University ACC 304 Week 10 Chapter
15 Quiz (All Possible Questions) NEW
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ACC 304 Week 10 Quiz – Strayer NEW
Week 10 Quiz 7: Chapter 15
STOCKHOLDERS’ EQUITY
IFRS questions are available at the end of this
chapter.
TRUE-FALSE—Conceptual
2. 1. A corporation is incorporated in only
one state regardless of the number of states in
which it operates.
2. The preemptive right allows
stockholders the right to vote for directors of
the company.
3. Common stock is the residual corporate
interest that bears the ultimate risks of loss.
4. Earned capital consists of additional
paid-in capital and retained earnings.
5. True no-par stock should be carried in
the accounts at issue price without any
additional paid-in capital reported.
6. Companies allocate the proceeds
received from a lump-sum sale of securities
based on the securities’ par values.
7. Companies should record stock issued
for services or noncash property at either the
3. fair value of the stock issued or the fair value
of the consideration received.
8. Treasury stock is a company’s own
stock that has been reacquired and retired.
9. The cost method records all
transactions in treasury shares at their cost
and reports the treasury stock as a deduction
from capital stock.
10. When a corporation sells treasury stock
below its cost, it usually debits the difference
between cost and selling price to Paid-in
Capital from Treasury Stock.
11. Participating preferred stock requires
that if a company fails to pay a dividend in any
year, it must make it up in a later year before
paying any common dividends.
12. Callable preferred stock permits the
corporation at its option to redeem the
outstanding preferred shares at stipulated
prices.
4. 13. The laws of some states require that
corporations restrict their legal capital from
distribution to stockholders.
14. The SEC requires companies to disclose
their dividend policy in their annual report.
15. All dividends, except for liquidating
dividends, reduce the total stockholders’
equity of a corporation.
16. Dividends payable in assets of the
corporation other than cash are called
property dividends or dividends in kind.
17. When a stock dividend is less than 20-
25 percent of the common stock outstanding,
a company is required to transfer the fair
value of the stock issued from retained
earnings.
18. Stock splits and large stock dividends
have the same effect on a company’s retained
earnings and total stockholders’ equity.
5. 19. The rate of return on common stock
equity is computed by dividing net income by
the average common stockholders’ equity.
20. The payout ratio is determined by
dividing cash dividends paid to common
stockholders by net income available to
common stockholders.
True-False Answers—Conceptual
MULTIPLE CHOICE—Conceptual
21. The residual interest in a corporation
belongs to the
a. management.
b. creditors.
c. common stockholders.
d. preferred stockholder
6. 22. The pre-emptive right of a common
stockholder is the right to
a. share proportionately in corporate assets
upon liquidation.
b. share proportionately in any new issues of
stock of the same class.
c. receive cash dividends before they are
distributed to preferred stockholders.
d. exclude preferred stockholders from
voting rights.
23. The pre-emptive right enables a
stockholder to
a. share proportionately in any new issues of
stock of the same class.
b. receive cash dividends before other
classes of stock without the pre-emptive right.
7. c. sell capital stock back to the corporation at
the option of the stockholder.
d. receive the same amount of dividends on a
percentage basis as the preferred
stockholders.
S24. In a corporate form of business
organization, legal capital is best defined as
a. the amount of capital the state of
incorporation allows the company to
accumulate over its existence.
b. the par value of all capital stock issued.
c. the amount of capital the federal
government allows a corporation to generate.
d. the total capital raised by a corporation
within the limits set by the Securities and
Exchange Commission.
8. S25. Stockholders of a business enterprise
are said to be the residual owners. The term
residual owner means that shareholders
a. are entitled to a dividend every year in
which the business earns a profit.
b. have the rights to specific assets of the
business.
c. bear the ultimate risks and uncertainties
and receive the benefits of enterprise
ownership.
d. can negotiate individual contracts on
behalf of the enterprise.
26. Total stockholders' equity represents
a. a claim to specific assets contributed by
the owners.
b. the maximum amount that can be
borrowed by the enterprise.
9. c. a claim against a portion of the total assets
of an enterprise.
d. only the amount of earnings that have
been retained in the business.
27. A primary source of stockholders'
equity is
a. income retained by the corporation.
b. appropriated retained earnings.
c. contributions by stockholders.
d. both income retained by the corporation
and contributions by stockholders.
28. Stockholders' equity is generally
classified into two major categories:
a. contributed capital and appropriated
capital.
10. b. appropriated capital and retained
earnings.
c. retained earnings and unappropriated
capital.
d. earned capital and contributed capital.
29. The accounting problem in a lump sum
issuance is the allocation of proceeds between
the classes of securities. An acceptable
method of allocation is the
a. pro forma method.
b. proportional method.
c. incremental method.
d. either the proportional method or the
incremental method.
30. When a corporation issues its capital
stock in payment for services, the least
11. appropriate basis for recording the
transaction is the
a. market value of the services received.
b. par value of the shares issued.
c. market value of the shares issued.
d. Any of these provides an appropriate basis
for recording the transaction.
31. Direct costs incurred to sell stock such
as underwriting costs should be accounted for
as
1. a reduction of additional paid-in capital.
2. an expense of the period in which the stock
is issued.
3. an intangible asset.
a. 1
12. b. 2
c. 3
d. 1 or 3
32. A "secret reserve" will be created if
a. inadequate depreciation is charged to
income.
b. a capital expenditure is charged to
expense.
c. liabilities are understated.
d. stockholders' equity is overstated.
P33. Which of the following represents the
total number of shares that a corporation may
issue under the terms of its charter?
a. authorized shares
b. issued shares
13. c. unissued shares
d. outstanding shares
S34. Stock that has a fixed per-share amount
printed on each stock certificate is called
a. stated value stock.
b. fixed value stock.
c. uniform value stock.
d. par value stock.
S35. Which of the following is not a legal
restriction related to profit distributions by a
corporation?
a. The amount distributed to owners must be
in compliance with the state laws governing
corporations.
14. b. The amount distributed in any one year
can never exceed the net income reported for
that year.
c. Profit distributions must be formally
approved by the board of directors.
d. Dividends must be in full agreement with
the capital stock contracts as to preferences
and participation.
S36. In January 2012, Finley Corporation, a
newly formed company, issued 10,000 shares
of its $10 par common stock for $15 per share.
On July 1, 2012, Finley Corporation
reacquired 1,000 shares of its outstanding
stock for $12 per share. The acquisition of
these treasury shares
a. decreased total stockholders' equity.
b. increased total stockholders' equity.
c. did not change total stockholders' equity.
15. d. decreased the number of issued shares.
P37. Treasury shares are
a. shares held as an investment by the
treasurer of the corporation.
b. shares held as an investment of the
corporation.
c. issued and outstanding shares.
d. issued but not outstanding shares.
38. When treasury stock is purchased for
more than the par value of the stock and the
cost method is used to account for treasury
stock, what account(s) should be debited?
a. Treasury stock for the par value and paid-
in capital in excess of par for the excess of the
purchase price over the par value.
b. Paid-in capital in excess of par for the
purchase price.
16. c. Treasury stock for the purchase price.
d. Treasury stock for the par value and
retained earnings for the excess of the
purchase price over the par value.
39. “Gains" on sales of treasury stock
(using the cost method) should be credited to
a. paid-in capital from treasury stock.
b. capital stock.
c. retained earnings.
d. other income.
40. Porter Corp. purchased its own par
value stock on January 1, 2012 for $20,000
and debited the treasury stock account for the
purchase price. The stock was subsequently
sold for $12,000. The $8,000 difference
between the cost and sales price should be
recorded as a deduction from
17. a. additional paid-in capital to the extent that
previous net "gains" from sales of the same
class of stock are included therein; otherwise,
from retained earnings.
b. additional paid-in capital without regard
as to whether or not there have been previous
net "gains" from sales of the same class of
stock included therein.
c. retained earnings.
d. net income.
41. How should a "gain" from the sale of
treasury stock be reflected when using the
cost method of recording treasury stock
transactions?
a. As ordinary earnings shown on the income
statement.
b. As paid-in capital from treasury stock
transactions.
18. c. As an increase in the amount shown for
common stock.
d. As an extraordinary item shown on the
income statement.
42. Which of the following best describes a
possible result of treasury stock transactions
by a corporation?
a. May increase but not decrease retained
earnings.
b. May increase net income if the cost method
is used.
c. May decrease but not increase retained
earnings.
d. May decrease but not increase net income.
43. Which of the following features of
preferred stock makes the security more like
debt than an equity instrument?
19. a. Participating
b. Voting
c. Redeemable
d. Noncumulative
44. The cumulative feature of preferred
stock
a. limits the amount of cumulative dividends
to the par value of the preferred stock.
b. requires that dividends not paid in any
year must be made up in a later year before
dividends are distributed to common
shareholders.
c. means that the shareholder can
accumulate preferred stock until it is equal to
the par value of common stock at which time
it can be converted into common stock.
20. d. enables a preferred stockholder to
accumulate dividends until they equal the par
value of the stock and receive the stock in
place of the cash dividends.
P45. According to the FASB, redeemable
preferred stock should be
a. included with common stock.
b. included as a liability.
c. excluded from the stockholders’ equity
heading.
d. included as a contra item in stockholders'
equity.
S46. Cumulative preferred dividends in
arrears should be shown in a corporation's
balance sheet as
a. an increase in current liabilities.
b. an increase in stockholders' equity.
21. c. a footnote.
d. an increase in current liabilities for the
current portion and long-term liabilities for
the long-term portion.
47. At the date of the financial statements,
common stock shares issued would exceed
common stock shares outstanding as a result
of the
a. declaration of a stock split.
b. declaration of a stock dividend.
c. purchase of treasury stock.
d. payment in full of subscribed stock.
48. An entry is not made on the
a. date of declaration.
22. b. date of record.
c. date of payment.
d. An entry is made on all of these dates.
49. Cash dividends are paid on the basis of
the number of shares
a. authorized.
b. issued.
c. outstanding.
d. outstanding less the number of treasury
shares.
50. Which of the following statements
about property dividends is not true?
a. A property dividend is usually in the form
of securities of other companies.
23. b. A property dividend is also called a
dividend in kind.
c. The accounting for a property dividend
should be based on the carrying value (book
value) of the nonmonetary assets transferred.
d. All of these statements are true
51. Houser Corporation owns 4,000,000
shares of stock in Baha Corporation. On
December 31, 2012, Houser distributed these
shares of stock as a dividend to its
stockholders. This is an example of a
a. property dividend.
b. stock dividend.
c. liquidating dividend.
d. cash dividend.
52. A dividend which is a return to
stockholders of a portion of their original
investments is a
24. a. liquidating dividend.
b. property dividend.
c. liability dividend.
d. participating dividend.
53. A mining company declared a
liquidating dividend. The journal entry to
record the declaration must include a debit to
a. Retained Earnings.
b. a paid-in capital account.
c. Accumulated Depletion.
d. Accumulated Depreciation.
54. If management wishes to "capitalize"
part of the earnings, it may issue a
a. cash dividend.
25. b. stock dividend.
c. property dividend.
d. liquidating dividend.
55. Which dividends do not reduce
stockholders' equity?
a. Cash dividends
b. Stock dividends
c. Property dividends
d. Liquidating dividends
56. The declaration and issuance of a stock
dividend larger than 25% of the shares
previously outstanding
a. increases common stock outstanding and
increases total stockholders' equity.
26. b. decreases retained earnings but does not
change total stockholders' equity.
c. may increase or decrease paid-in capital in
excess of par but does not change total
stockholders' equity.
d. increases retained earnings and increases
total stockholders' equity.
57. Quirk Corporation issued a 100% stock
dividend of its common stock which had a par
value of $10 before and after the dividend. At
what amount should retained earnings be
capitalized for the additional shares issued?
a. There should be no capitalization of
retained earnings.
b. Par value
c. Fair value on the declaration date
d. Fair value on the payment date
27. 58. The issuer of a 5% common stock
dividend to common stockholders preferably
should transfer from retained earnings to
contributed capital an amount equal to the
a. fair value of the shares issued.
b. book value of the shares issued.
c. minimum legal requirements.
d. par or stated value of the shares issued.
59. At the date of declaration of a small
common stock dividend, the entry should not
include
a. a credit to Common Stock Dividend
Payable.
b. a credit to Paid-in Capital in Excess of Par.
c. a debit to Retained Earnings.
28. d. All of these are acceptable.
60. The balance in Common Stock Dividend
Distributable should be reported as a(n)
a. deduction from common stock issued.
b. addition to capital stock.
c. current liability.
d. contra current asset.