Reference no: EM132319332
Question
1. Preferred stockholders? ________
A. receive a set percentage of corporation net income
B.are guaranteed that they will not have a loss on their investment
C.receive a dividend preference over common stockholders
D.are guaranteed to receive an annual dividend payment
2. For accounting? purposes, par value stock is treated the same as stated value stock except for the account names.
True
False
3. Which of the following actions will increase the Common Stock? account?
A.stock split
B.purchase of treasury stock
C.cash dividend
D.stock dividend declared and distributed
4. Which of the following requires a formal journal? entry?
A.selection of a new CEO
B.stock split
C.date of record for cash dividends
D.stock dividend distribution
5. A company originally issued 10,000 shares of $9.00 par value common stock at $17.00 per share. The board of directors declares a 14?% stock dividend when the market price of the stock is $21.00 a share. Which of the following is included in the entry to record the declaration of a stock? dividend?
A.Stock Dividends is debited for $14,700.
B.Common Stock-$9.00 Par Value is credited for $28,000.
C.Stock Dividends is debited for $29,400.
D.Common Stock is credited for $29,400.
6. The following information is from the December? 31, 2018 balance sheet of May Corporation.
Preferred? Stock, $100 par $390,000
?Paid-In Capital in Excess of Par-Preferred ?25,000
Common? Stock, $1 par ?152,000
?Paid-In Capital in Excess of Par-Common ?346,000
Retained Earnings 83,900
Total? Stockholders' Equity ?$996,900
What was the total? paid-in capital as of December? 31, 2018?
A.$888,000
B.$913,000
C.$996,900
D.$736,000
7. The entry to record the payment of a previously declared dividend of? $0.25 per share on? 18,500 shares of common stock includes a? ________.
A. debit to Dividends Payable for? $4,625
B. debit to Cash? $4,625
C. debit to Cash Dividends for? $4,625
D. credit to Cash Dividends for? $4,625
8. The disposal of a business segment is reported as discontinued operations.
True
False
9. To compare companies of different? sizes, investors need some standard profitability ratios.
True
False
10. The 2019 balance sheet for Standard Electronics reported the following items - with 2018 figures given for comparison:
Standard Electronics
Balance Sheet
As of December? 31, 2019
Total Assets ?$571,000
Total Liabilities ?330,000
Total? Stockholders' Equity? (all common) ?241,000
Total Liabilities and ?Stockholders' Equity ?$571,000
Standard Electronics
Balance Sheet
As of December? 31, 2018
Total Assets $494,000
Total Liabilities 284,000
Total? Stockholders' Equity? (all common) 210,000
Total Liabilities and ?Stockholders' Equity $494,000
Net income for 2019 was? $25,000. Compute the rate of return on common? stockholders' equity for 2019.? (Round your final answer to two decimal? places.)
A.4.38%
B.4.69%
C.10.37%
D.11.09%
11. The declaration of a stock dividend creates a liability for the corporation.
True
False
12. When 8,000 shares of $4.00 stated value common stock is issued at $16.00 per? share, ________.
A.the accounting is exactly the same as the accounting for par value stock
B.the difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated-Common
C.Common Stock - $4.00 Stated is credited for $128,000
D.the account titled Paid-In Capital in Excess of Stated-Common is used to record the issue price of the stock
13. The purchase of treasury stock? ________.
A.increases assets and? stockholders' equity
B.decreases assets and? stockholders' equity
C.increases assets and decreases? stockholders' equity
D.decreases assets and increases? stockholders' equity
14. A profitable corporation may make distributions to stockholders in the form of bonuses.
True
False