Question 1

The Common Stock account on a company's balance sheet is measured as:

Accepted Answer

A)  The number of common shares outstanding x the stock's par value per share.
B)  The number of common shares outstanding x the stock's current market value per share.
C)  The number of common shares issued x the stock's par value per share.
D)  The number of common shares issued x the stock's current market value per share.E) B) and C)
F) None of the above

Question 2

The financial statements of Heatwave Athletic Wear include the following selected data ($ in millions): Sales,$22,502; Net income $875; Beginning stockholders' equity $3,567; Ending stockholders' equity,$4,102.Calculate the return on equity.

Accepted Answer

The answer of The financial statements of Heatwave Athletic Wear...

Question 3

What would be the impact on the accounting equation when a company purchases treasury stock?

Accepted Answer

A)  Increase assets and increase stockholders' equity.
B)  Decrease assets and increase stockholders' equity.
C)  Decrease assets and decrease stockholders' equity.
D)  No effect on the accounting equation.E) None of the above
F) A) and D)

Question 4

When a company issues 25,000 shares of $1 par value common stock for $10 per share,the journal entry for this issuance would include:

Accepted Answer

A)  A debit to Cash for $25,000.
B)  A debit to Additional Paid-in Capital for $25,000.
C)  A credit to Common Stock for $250,000.
D)  A credit to Additional Paid-in Capital for $225,000.E) C) and D)
F) None of the above

Question 5

Paid-in Capital is the amount stockholders have invested in the company.

Accepted Answer

A) True 
 B)False

Question 6

Financial information for Retro Designs includes the following selected data: 
  Net income (in millions)  $145 Preferred stock dividends (in millions)  $25 Shares outstanding (in millions)  240 Stock price $10.00\begin{array}{lr}	ext { Net income (in millions)  } & \$ 145 \	ext { Preferred stock dividends (in millions)  } & \$ 25 \	ext { Shares outstanding (in millions)  } & 240 \	ext { Stock price } & \$ 10.00\end{array} Net income (in millions)   Preferred stock dividends (in millions)   Shares outstanding (in millions)   Stock price ​$145$25240$10.00​ 
What is the company's earnings per share?

Accepted Answer

A)  $0.60.
B)  $0.71.
C)  $0.50.
D)  $0.05. E) B) and C)
F) A) and D)

Question 7

Par value is the legal capital per share of stock that's assigned when the corporation is first established.

Accepted Answer

A) True 
 B)False

Question 8

The par value of common stock represents:

Accepted Answer

A)  The legal capital per share of stock assigned when the corporation was first established.
B)  The liquidation value of a share.
C)  The market value of a share of stock.
D)  The amount received when the stock was issued.E) All of the above
F) A) and B)

Question 9

Environmental Designs issues 10,000 shares of its $1 par value common stock at $25 per share.(1)Record the issuance of the stock.(2)Record the issuance of the stock assuming it is no-par value stock.

Accepted Answer

The answer of Environmental Designs issues 10,000 shares of its...

Question 10

On December 2,Coley Corp.reacquired 1,000 shares of its $2 par value common stock for $27 each.On December 20,Coley Corp.reissued 400 shares for $15 each.Which of the following is correct regarding the journal entry for the reissued shares?

Accepted Answer

A)  Debit Cash $15,000.
B)  Credit Treasury Stock $10,800.
C)  Credit Paid in Capital - Treasury Stock $5,200.
D)  Credit Treasury Stock $6,000.E) A) and B)
F) B) and D)

Question 11

Indicate whether each of the following transactions increases (+),decreases (-),or has no effect (NE)on total assets,total liabilities,and total stockholders' equity.
 $\begin{array}{llll}& && \text { Total } \
&\text { Total } & \text { Total } & \text { Stockholders' } \
\text { Transaction }&\text { Assets } & \text { Liabilities } & \text { Equity }\
\text { Issue common stock }\
\text { Issue preferred stock } \
\text { Repurchase treasury stock } \
\text { Sale of treasury stock } \

\end{array}$

Accepted Answer

The answer of Indicate whether each of the following transactions...

Question 12

Issued stock refers to the number of shares:

Accepted Answer

A)  Outstanding plus treasury shares.
B)  Authorized.
C)  In the hand of stockholders.
D)  That may be issued under state law.E) C) and D)
F) All of the above

Question 13

Authorized stock is the number of shares that have been sold to investors.

Accepted Answer

A) True 
 B)False

Question 14

On November 6,Coleman Corp.reacquired 1,000 shares of its $2 par value common stock for $27 each.On November 20,Coleman Corp.reissued 400 shares for $30 each.Which of the following is correct regarding the effect of the journal entry for the reissued shares?

Accepted Answer

A)  Assets decrease.
B)  Liabilities decrease.
C)  Expenses increase.
D)  Stockholders' Equity increases.E) All of the above
F) B) and D)

Question 15

The Retained Earnings balance reported on the balance sheet typically is not affected by:

Accepted Answer

A)  Net income.
B)  Net loss.
C)  Dividends paid.
D)  Stock splits.E) All of the above
F) A) and B)

Question 16

Earnings per share is useful in comparing earnings performance across companies.

Accepted Answer

A) True 
 B)False

Exam 10: Stockholders Equity

Correct Answer
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The financial statements of Heatwave Athletic Wear include the following selected data ($ in millions): Sales,$22,502; Net income $875; Beginning stockholders' equity $3,567; Ending stockholders' equity,$4,102.Calculate the return on equity.

Correct Answer
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On December 2,Coley Corp.reacquired 1,000 shares of its $2 par value common stock for $27 each.On December 20,Coley Corp.reissued 400 shares for $15 each.Which of the following is correct regarding the journal entry for the reissued shares?

Correct Answer
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Par value is the legal capital per share of stock that's assigned when the corporation is first established.

Correct Answer
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Paid-in Capital is the amount stockholders have invested in the company.

Correct Answer
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What would be the impact on the accounting equation when a company purchases treasury stock?

Correct Answer
verified

Earnings per share is useful in comparing earnings performance across companies.

Correct Answer
verified

The Common Stock account on a company's balance sheet is measured as:

Correct Answer
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The par value of common stock represents:

Correct Answer
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On November 6,Coleman Corp.reacquired 1,000 shares of its $2 par value common stock for $27 each.On November 20,Coleman Corp.reissued 400 shares for $30 each.Which of the following is correct regarding the effect of the journal entry for the reissued shares?

Correct Answer
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Correct Answer
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Environmental Designs issues 10,000 shares of its $1 par value common stock at $25 per share.(1)Record the issuance of the stock.(2)Record the issuance of the stock assuming it is no-par value stock.

Correct Answer
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When a company issues 25,000 shares of $1 par value common stock for $10 per share,the journal entry for this issuance would include:

Correct Answer
verified

The Retained Earnings balance reported on the balance sheet typically is not affected by:

Correct Answer
verified

Authorized stock is the number of shares that have been sold to investors.

Correct Answer
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Issued stock refers to the number of shares:

Correct Answer
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Exam 10: Stockholders Equity

Correct AnswerverifiedShow Answer

The financial statements of Heatwave Athletic Wear include the following selected data ($ in millions): Sales,$22,502; Net income $875; Beginning stockholders' equity $3,567; Ending stockholders' equity,$4,102.Calculate the return on equity.

Correct AnswerverifiedShow Answer

On December 2,Coley Corp.reacquired 1,000 shares of its $2 par value common stock for $27 each.On December 20,Coley Corp.reissued 400 shares for $15 each.Which of the following is correct regarding the journal entry for the reissued shares?

Correct AnswerverifiedShow Answer

Par value is the legal capital per share of stock that's assigned when the corporation is first established.

Correct AnswerverifiedShow Answer

Paid-in Capital is the amount stockholders have invested in the company.

Correct AnswerverifiedShow Answer

What would be the impact on the accounting equation when a company purchases treasury stock?

Correct AnswerverifiedShow Answer

Earnings per share is useful in comparing earnings performance across companies.

Correct AnswerverifiedShow Answer

The Common Stock account on a company's balance sheet is measured as:

Correct AnswerverifiedShow Answer

The par value of common stock represents:

Correct AnswerverifiedShow Answer

On November 6,Coleman Corp.reacquired 1,000 shares of its $2 par value common stock for $27 each.On November 20,Coleman Corp.reissued 400 shares for $30 each.Which of the following is correct regarding the effect of the journal entry for the reissued shares?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Environmental Designs issues 10,000 shares of its $1 par value common stock at $25 per share.(1)Record the issuance of the stock.(2)Record the issuance of the stock assuming it is no-par value stock.

Correct AnswerverifiedShow Answer

When a company issues 25,000 shares of $1 par value common stock for $10 per share,the journal entry for this issuance would include:

Correct AnswerverifiedShow Answer

The Retained Earnings balance reported on the balance sheet typically is not affected by:

Correct AnswerverifiedShow Answer

Authorized stock is the number of shares that have been sold to investors.

Correct AnswerverifiedShow Answer

Issued stock refers to the number of shares:

Correct AnswerverifiedShow Answer

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