Recent Question

Ranier Company is authorized 1. Brown Company has 1,000 shares of 6%, $100 par cumulative preferred stock outstanding at December 31, 2013. No dividends have been paid on this stock for 2012 or 2013. Dividends in arrears at December 31, 2013 total a. $0. b. $600. c. $6,000. d. $12,000. 2. Era Company has 3,000 shares of 5%, $100 par non-cumulative preferred stock outstanding at December 31, 2013. No dividends have been paid o ...

Other / Other 22 Mar 2016

acquisition of treasury stock 1. Each of the following is correct regarding treasury stock except that it has been a. issued. b. fully paid for. c. reacquired. d. retired. 2. Treasury stock is a. stock issued by the U.S. Treasury Department. b. stock purchased by a corporation and held as an investment in its treasury. c. corporate stock issued by the treasurer of a company. d. a corporation's own stock which has been rea ...

Other / Other 22 Mar 2016

effect the declaration and distribution of a stock dividend 1. Identify the effect the declaration and distribution of a stock dividend has on the par value per share. Par Value per Share a. Increase b. Decrease c. Increase or decrease d. No effect 2. The declaration of a stock dividend will a. increase paid-in capital. b. change the total of stockholders' equity. c. increase total liabilities. d. increase total asset ...

Other / Other 22 Mar 2016

annual dividend on the preferred stock 1. Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par noncumulative preferred stock. In 2012, Core declared and paid dividends of $4,000. In 2013, Core declared and paid dividends of $12,000. How much of the 2013 dividend was distributed to preferred shareholders? a. $7,000 b. $4,000 c. $5,000 d. None of the above 2. On J ...

Other / Other 22 Mar 2016

Accounting for treasury stock 1. Accounting for treasury stock is done by the a. FIFO method. b. LIFO method. c. cost method. d. lower of cost or market method. 2. Treasury stock is generally accounted for by the a. cost method. b. market value method. c. par value method. d. stated value method. 3. Treasury Stock is a(n) a. contra asset account. b. retained earnings account. c. asset account. d. contra stockhol ...

Other / Other 22 Mar 2016

Dividends in arrears on cumulative 1. Which of the following is not a right or preference associated with preferred stock? a. The right to vote b. First claim to dividends c. Preference to corporate assets in case of liquidation d. To receive dividends in arrears before common stockholders receive dividends 2. Cooke Corporation issues 10,000 shares of $50 par value preferred stock for cash at $90 per share. The entry to re ...

Other / Other 22 Mar 2016

effect of the declaration of a cash dividend 1. Which one of the following is not necessary in order for a corporation to pay a cash dividend? a. Adequate cash b. Approval of stockholders c. Declaration of dividends by the board of directors d. Retained earnings 2. If a corporation declares a dividend based upon paid-in capital, it is known as a a. scrip dividend. b. property dividend. c. paid dividend. d. liquidating div ...

Other / Other 22 Mar 2016

total stockholders' equity 1. If preferred stock is cumulative, the a. preferred dividends not declared in a given year are called dividends in arrears. b. preferred stockholders and the common stockholders receive equal dividends. c. preferred stockholders and the common stockholders receive the same total dollar amount of dividends. d. common stockholders will share in the preferred dividends. 2. The Northern Corporation i ...

Other / Other 22 Mar 2016

common stock outstanding 1. Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013. What is the amount of dividends received by the common stockholders in 2013? a. $0 b. $50,000 c. $20,000 d. $70,000 2. Last In ...

Other / Other 22 Mar 2016

A credit balance in retained earnings 1. Moore, Inc. had 250,000 shares of common stock outstanding before a stock split occurred, and 750,000 shares outstanding after the stock split. The stock split was a. 2-for-5. b. 5-for-1. c. 1-for-5. d. 3-for-1. 2. Restricting retained earnings for the cost of treasury stock purchased is a a. contractual restriction. b. legal restriction. c. stock restriction. d. voluntary restric ...

Other / Other 22 Mar 2016