ACCOUNTING 12 FINAL Flashcards
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Dividend yield equals:
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Dividends per share divided by market price per share
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Which of the following phrases is not descriptive of the corporate form of business?
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Unlimited liability
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Par Value
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Is the legal capital established for a share of stock
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A good measure of confidence in a corporation's future is
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Price/earnings ratio
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Which of the following is the appropriate entry to record the declaration of cash dividends?
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Debit: Dividends Credit: Dividends Payable
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The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 2010. The dividend is to be paid on July 15, 2010, to shareholders of record on July 1, 2010. The proper entry to be recorded on July 15, 2010, will be:
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Debit: Dividends payable Credit: Cash
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The number of shares of issued stock equals:
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Outstanding shares plus treasury stock
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All of the following normally are found in a corporation's stockholders' equity section except
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Dividends payable
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Holders of preferred stock normally do not have:
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Full voting rights
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Outstanding shares of stock are
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Issued shares that are still in circulation
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Legal capital is a descriptive phrase for
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Par value
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How should dividends in arrears be shown on a corporation's balance sheet?
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In a note or in the body of the financial statements
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When shares of preferred stock may be redeemed by the corporation at a certain price, the shares are said to be
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Callable
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1. Honig Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8%, Cumulative, $100 par value, 10,000 shares outstanding Dividends were in arrears for 2008 and 2009 On December 31, 2010, total cash dividends of $400,000 were declared. The total amounts payable to preferred and common stockholders respectfully are:
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$240,000 and $160,000
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Start up and organization costs
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Are expensed in the year incurred
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The net effects on the corporation of the declarations and payment of a cash dividend are to:
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Decrease assets and decrease stockholders equity
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1. Beckham Corporation has 3,000 shares of $100 par value, 7% cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operations. Beckham Corporation paid cash dividends as follows: 2006: $30,000 2007: 0 2008: $65,000 2009: $30,000 2010" $15,000 The amount of dividends received by the common stockholders during 2009 was:
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$ 9,000
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he excess of the issue price over the stated value of a no-par common stock should be credited to:
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Additional paid in capital
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When stock is issued for non cash assets or services, the dollar amount to be recorded for this exchange is determined by the
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Market value of the stock or the market value of the consideration received when the market value of the stock cannot be determined
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A corporations' residual equity is its:
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Common stock
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Which of the following would not affect the balance of the Retained Earnings account?
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Stock split
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How will the declaration and distribution of a 10% stock dividend affect the issuing corporation's balance of retained earnings and total stockholders' equity, respectively?
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Decrease and no effect
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The corporation issued 400 shares of stock to its lawyer in full payment of the $10,000 bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state authority.
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Debit 10,000 Additional Credit 4000 Common Credit 6000
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The company issued 16,000 shares of stock at a price of $50 per share.
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Debit 800,000 Cash Credit 160,000 Common Credit 640,000 Additional payed in capital
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The company issued 14,000 shares of stock in exchange for equipment that had a fair market value of $320,000.
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Debit 320,000 Equipment Credit 140,000 Common Credit 180,000 Additional Payed in Capital
