actual test multiple choice Flashcards
each of the following decreases total stockholders equity except a
stock dividend
the date of which a cash dividend becomes a binding legal obligation is on the
declaration date
dividends payable is classified as a
current liability
indicate the respective effects of the declaration of a cash dividend on the balance sheet sections
TA | TL | TOTAL STOCKHOLDERS RQUITY
Total Assets: No Change
Total Liabilities: Increase
Total Stockholders equity: decrease
the per share amout normally assigned by the board of directors to a small stock dividend is
the par or stated value of the stock
which of the following show the proper effect of a stock split and a stock dividend
Par Value per share; Stock Split:Decrease Stock Dividend: No change
common stock dividends distributable is classified as an
liability
the return on common stockholders equity is computed y dividing net income available to common stockholders by
average common stockholders equity
income statements for corporations are the same as the statements for proprietorship except for the reporting of
income tax expense
jackson company is a publicly held corporation whose $1 par value stock is traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton will
debit land for 192,000
Jackson company is a publicly held corporation whose $1 par value stock is traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton will
debit land for 192,000
In the financial statements, organization costs appears
in the income statement
which of the following represents the largest number of common shares
Authorized shares
dividends in arrears on cumulative preferred stock
must be paid before common stockholders can receive a dividend.
the acquisition of treasury stock by a corporation
decreases its total assets and stockholders equity
treasury stock is an
contra stockholders equity account
information that is not generally reported for each class of stock on the balance sheet is
the market value
which of the following is not an advantage of issuing bonds instead of common stock
earnings per share on common stock may be lower
bonds that may be exchanged for common stock at the option of the bondholders are called
convertible bonds
The interest rate investors demand for loaning funds is the
market interest rate
if the market interest rate is greater than the contractual interest rate, bonds will sell
at a discount
in the balance sheet, the account, premium on bonds payable is
added to bonds payable
thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is
DB Bonds Payable 30,000
Db Premium on Bonds Payable
Cr Common Stock 20,000 (4,000 x 5)
Cr Paid in capital in excess of par
thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is
DB Bonds Payable 30,000
Db Premium on Bonds Payable 9,600
Cr Common Stock 20,000 (4,000 x 5)
Cr Paid in capital in excess of par 19,600
