F7 - M6 - Stockholders' Equity: Part 2

Question 1

_________ are contracts to buy a stock at a future date.

Answer 1

Stock subscriptions

Question 2

___________ provide existing shareholders with the opportunity to buy additional shares and do not
affect equity until exercised.

Answer 2

Stock rights

Question 3

Dividends declared reduce ______ on the __________ date.

Answer 3

R/E ; declaration

Question 4

Property dividends are recorded at their _______ at the _______ date. Gain or loss is recognized
on that date.

Answer 4

fair value; declaration

Question 5

Stock dividends occur in two sizes, what are they?

Answer 5

small and large.

Question 6

The “break point” for stock dividend size is _______ percent of outstanding C/S.

Answer 6

20 to 25

Question 7

Small stock dividends are recorded at _______ on the declaration date.

Answer 7

fair value

Question 8

Large stock dividends are recorded at _______value.

Answer 8

par value

Question 9

________ do not require a journal entry and total book value of C/S is unchanged.

Answer 9

Stock splits

Question 10

The ____________ provides specific information about changes in a company’s primary equity components for a stipulated period(s).

Answer 10

The statement of changes in shareholders’ equity