Term
|
Definition
Which characteristic is a disadvantage?
A) Mutual Agency
B) Double Taxation
C) Limited Liability
D) None are disadvantages |
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Term
| Paid in capital and retained earnings |
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Definition
The two sources of stockholders' equity are:
A) Assets and equity
B) Preferred and common
C) Retained earnings and dividends
D) Paid in capital and retained earnings |
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Term
Debit cash 1,600,000
Credit Common Stock - $0.10 par value 40,000
Credit Paid in capital in excess of par - common 1,560,000 |
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Definition
| Suppose Value Home and Garden Imports issued 400,000 shares of $0.10 par value common stock at $4 per share. Which journal entry correctly records the issuance of this stock? |
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Term
|
Definition
Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at:
A) the par value of the stock given
B) its book value
C) its market value
D) a value assigned by the board of directors |
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Term
|
Definition
A company's own stock that it has issued and repurchased is called:
A) outstanding stock
B) dividend stock
C) issued stock
D) treasury stock |
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Term
Decreased total equity by $6,600
Debit Treasury stock by $6,600
Credit cash by $6,600 |
|
Definition
Assume that a company paid $6 per share to purchase 1,100 shares of its $3 par common stock as treasury stock. The purchase of treasury stock
A) increased total equity by #3,300
B) decreased total equity by $3,300
C) decreased total equity by $6,600
D) increased total equity by $6,600 |
|
|
Term
$46,800
4% * $10 * 9,000 * 2 years = $7,200
$54000 - $7200 = $46,800 |
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Definition
| Winston Corporation has 9,000 shares of 4%, $10 par cumulative preferred stock and 47,000 shares of common stock outstanding. Winston declared no dividends in 2015 and had no dividends in arrears prior to 2015. In 2016, Winston declares dividends of $54000. How much of the dividends go to the common stockholders? |
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Term
| has no effect on total equity |
|
Definition
A small stock dividend
A) increases retained earnings
B) decreases common stock
C) has no effect on total equity
D) all of the above |
|
|
Term
$34,000
($15 * 8000) + (-$86000) |
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Definition
Jackson health foods has 8,000 shares of $2 par common stock outstanding, which were issued at $15 per share. Jackson also has a deficit balance in Retained Earnings of $86,000. How much is Jackson's total stockholders' equity?
A) $16,000
B) $120,000
C) $206,000
D) $34,000 |
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Term
|
Definition
What is Dale's rate of return on common stock holders' equity if his net income is $24,000, preferred dividends issued were $12,000 and Average common stockholder's equity totals $100,000?
A) 24%
B) 50%
C) 12%
D) 36% |
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