Processing math: 100%
MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
practice
Orion Chapter 11 Quiz
Hadley Corporation issued 200,000 shares of
5
p
a
r
v
a
l
u
e
c
o
m
m
o
n
s
t
o
c
k
f
o
r
25 per share. During that year, the corporation sustained a net loss of $40,The year-end balance sheet would show
Report Question
0%
common stock of $1,500,000.
0%
common stock of $1,000,000.
0%
200
,
000
a
n
d
315,000
0%
Common Stock
10
,
000
a
n
d
P
a
i
d
−
i
n
C
a
p
i
t
a
l
i
n
E
x
c
e
s
s
o
f
P
a
r
−
C
o
m
m
o
n
S
t
o
c
k
2,000.
In 2015, First Inc. issued 12,000 shares of 8%,
60
p
a
r
−
v
a
l
u
e
p
r
e
f
e
r
r
e
d
s
t
o
c
k
w
i
t
h
a
c
u
m
u
l
a
t
i
v
e
−
d
i
v
i
d
e
n
d
f
e
a
t
u
r
e
.
I
n
2015
,
t
h
e
f
i
r
m
p
a
i
d
t
o
t
a
l
d
i
v
i
d
e
n
d
s
o
f
30,000, and in 2016, it paid total dividends of
45
,
I
f
F
i
r
s
t
d
e
c
l
a
r
e
s
180,000 in total dividends for 2017, what amount will be available for its common stockholders?
Report Question
0%
$26,000
0%
$789,000
0%
$82,200
0%
$9,000.
The board of directors of Pilgrim Company authorizes a $100,000 restriction of retained earnings for a future plant expansion. This action will
Report Question
0%
reduce the amount of retained earnings available for dividend declarations.
0%
there is no relationship between par value and market price.
0%
Common Stock
10
,
000
a
n
d
P
a
i
d
−
i
n
C
a
p
i
t
a
l
i
n
E
x
c
e
s
s
o
f
P
a
r
−
C
o
m
m
o
n
S
t
o
c
k
2,000.
0%
The entire proceeds from the issuance of the stock become legal capital.
When a company declares a stock dividend, the declaration will
Report Question
0%
2-for-1 stock split
0%
decreases the company's total assets and total stockholders' equity.
0%
increase paid-in capital.
0%
only the paid-in capital account.
Which of the following companies has the highest return on common stockholders' equity?
Report Question
0%
A corporation can buy, sell, and own property.
0%
a company with
18
m
i
l
l
i
o
n
c
a
s
h
d
i
v
i
d
e
n
d
s
d
e
c
l
a
r
e
d
o
n
c
o
m
m
o
n
s
t
o
c
k
a
n
d
a
n
e
t
i
n
c
o
m
e
o
f
94 million
0%
A corporation is subject to more federal and state government regulations.
0%
a company with a net income of
17
m
i
l
l
i
o
n
,
p
r
e
f
e
r
r
e
d
d
i
v
i
d
e
n
d
s
o
f
950,000, and average common stockholders' equity of $90 million
Romine Industries has total stockholders' equity of
4
,
982
,
G
i
v
e
n
t
h
e
f
o
l
l
o
w
i
n
g
i
n
f
o
r
m
a
t
i
o
n
,
w
h
a
t
i
s
t
h
e
c
o
m
p
a
n
y
′
s
t
o
t
a
l
a
d
d
i
t
i
o
n
a
l
p
a
i
d
−
i
n
c
a
p
i
t
a
l
?
C
o
m
m
o
n
S
t
o
c
k
,
3 par (400,000 shares authorized, 358,000 shares issued and outstanding). Preferred Stock, 4%,
100
p
a
r
(
5
,
000
s
h
a
r
e
s
a
u
t
h
o
r
i
z
e
d
,
i
s
s
u
e
d
,
a
n
d
o
u
t
s
t
a
n
d
i
n
g
)
.
R
e
t
a
i
n
e
d
E
a
r
n
i
n
g
s
(
e
n
d
i
n
g
b
a
l
a
n
c
e
)
:
2,619,000
Report Question
0%
$9,000.
0%
2-for-1.
0%
$26,000
0%
$789,000
Claire and David hold stock in two different companies, but both recently received additional shares of common stock rather than a cash dividend. After receiving the additional stock, the par value of Claire's stock decreased by 67%, but the par value of David's stock remained the same. What is the difference between Claire and David?
Report Question
0%
There will be no effect on total common stockholders' equity.
0%
Tabitha owns stock of a publicly held corporation, whereas Gerald owns stock of a privately held corporation.
0%
Claire received a stock split, and David received a stock dividend.
0%
there is no relationship between par value and market price.
To find the return on common stockholders' equity, divide net income available to common stockholders by ________ stockholders' equity.
Report Question
0%
average common
0%
reduce the amount of retained earnings available for dividend declarations.
0%
2-for-1.
0%
market price
How does the accounting process differ if a company issues both common and preferred stock instead of only common stock?
Report Question
0%
there is no relationship between par value and market price.
0%
The Paid-in Capital in Excess of Par Value account must be designated as either Preferred Stock or Common Stock if both types of stock are issued, whereas the designation is not necessary if only common stock is issued.
0%
a company with a net income of
17
m
i
l
l
i
o
n
,
p
r
e
f
e
r
r
e
d
d
i
v
i
d
e
n
d
s
o
f
950,000, and average common stockholders' equity of $90 million
0%
average common
Candela Company has retained earnings of
500
,
000
,
c
o
m
m
o
n
s
t
o
c
k
o
f
400,000, and total common stockholders' equity of
1
,
200
,
I
t
h
a
s
200
,
000
s
h
a
r
e
s
o
f
2 par value common stock outstanding which is currently selling for $5 per share. If Candela Company declares a 2-for-1 stock split on its common stock, which of the following will occur?
Report Question
0%
there is no relationship between par value and market price.
0%
There will be no effect on total common stockholders' equity.
0%
decreases the company's total assets and total stockholders' equity.
0%
Claire received a stock split, and David received a stock dividend.
A-Team Corporation issued 1,000 shares of
5
p
a
r
v
a
l
u
e
s
t
o
c
k
f
o
r
l
a
n
d
.
T
h
e
s
t
o
c
k
i
s
a
c
t
i
v
e
l
y
t
r
a
d
e
d
a
t
9 per share. The land was advertised for sale at $10,The land should be recorded at
Report Question
0%
$82,200
0%
$26,000
0%
$9,000.
0%
$789,000
Tabitha and Gerald are discussing common stock that they hold. Tabitha states that she purchased hers through the New York Stock Exchange, but Gerald says that he purchased his by investing in his brother-in-law's company. What is the difference between the investments of Tabitha and Gerald?
Report Question
0%
a company with a net income of
17
m
i
l
l
i
o
n
,
p
r
e
f
e
r
r
e
d
d
i
v
i
d
e
n
d
s
o
f
950,000, and average common stockholders' equity of $90 million
0%
Tabitha owns stock of a publicly held corporation, whereas Gerald owns stock of a privately held corporation.
0%
Jennifer's stock was no-par common stock with a stated value that sold for more than the stated value, and Hernando's stock was no-par common stock without a stated value.
0%
Claire received a stock split, and David received a stock dividend.
Felix Incorporated has just exchanged 1,250 shares of
65
p
a
r
−
v
a
l
u
e
p
r
e
f
e
r
r
e
d
s
t
o
c
k
f
o
r
a
p
a
r
c
e
l
o
f
l
a
n
d
a
d
v
e
r
t
i
s
e
d
f
o
r
a
p
r
i
c
e
o
f
90,If the current market value of the stock is $75 per share, how should Felix journalize this transaction?
Report Question
0%
Land = Debit of
93
,
750
;
P
r
e
f
e
r
r
e
d
S
t
o
c
k
=
C
r
e
d
i
t
o
f
81,250; Paid-in Capital in Excess of Par—Preferred Stock = Credit of $12,500
0%
Claire received a stock split, and David received a stock dividend.
0%
Land
120
,
000
C
o
m
m
o
n
S
t
o
c
k
100,000Paid-in Capital in Excess of Stated Value - Common Stock $20,000
0%
Tabitha owns stock of a publicly held corporation, whereas Gerald owns stock of a privately held corporation.
Clayworks Corporation issued 300,000 shares of
5
p
a
r
v
a
l
u
e
c
o
m
m
o
n
s
t
o
c
k
f
o
r
26 per share. During that year, the corporation sustained a net loss of $80,The year-end balance sheet would show
Report Question
0%
common stock of $1,500,000.
0%
common stock of $1,000,000.
0%
Common Stock
10
,
000
a
n
d
P
a
i
d
−
i
n
C
a
p
i
t
a
l
i
n
E
x
c
e
s
s
o
f
P
a
r
−
C
o
m
m
o
n
S
t
o
c
k
2,000.
0%
200
,
000
a
n
d
315,000
What happens if no-par value stock does not have a stated value?
Report Question
0%
The entire proceeds from the issuance of the stock become legal capital.
0%
decreases the company's total assets and total stockholders' equity.
0%
The entire proceeds are credited to common stock.
0%
A corporation is subject to more federal and state government regulations.
The following data is available for Wingate Corporation at December 31st, 2017: Common stock, par
10
(
a
u
t
h
o
r
i
z
e
d
30
,
000
s
h
a
r
e
s
)
260,000Treasury stock (at cost
15
p
e
r
s
h
a
r
e
)
1,200Based on the data, how many shares of common stock are issued?
Report Question
0%
$26,000
0%
$0
0%
$82,200
0%
$9,000.
Jennifer and Hernando are both accountants at their companies. Both companies issued new shares of common stock. When Jennifer journalized her stock transaction, she credited both the Common Stock and the Paid-in Capital in Excess of Stated Value account. When Hernando journalized his stock transaction, he only credited the Common Stock account. What is one reason this difference may have occurred?
Report Question
0%
Land = Debit of
93
,
750
;
P
r
e
f
e
r
r
e
d
S
t
o
c
k
=
C
r
e
d
i
t
o
f
81,250; Paid-in Capital in Excess of Par—Preferred Stock = Credit of $12,500
0%
The Paid-in Capital in Excess of Par Value account must be designated as either Preferred Stock or Common Stock if both types of stock are issued, whereas the designation is not necessary if only common stock is issued.
0%
Tabitha owns stock of a publicly held corporation, whereas Gerald owns stock of a privately held corporation.
0%
Jennifer's stock was no-par common stock with a stated value that sold for more than the stated value, and Hernando's stock was no-par common stock without a stated value.
ABC Corporation issues 1,000 shares of
10
p
a
r
v
a
l
u
e
c
o
m
m
o
n
s
t
o
c
k
a
t
12 per share. In recording the transaction, credits are made to
Report Question
0%
common stock of $1,000,000.
0%
Common Stock
10
,
000
a
n
d
P
a
i
d
−
i
n
C
a
p
i
t
a
l
i
n
E
x
c
e
s
s
o
f
P
a
r
−
C
o
m
m
o
n
S
t
o
c
k
2,000.
0%
Land
120
,
000
C
o
m
m
o
n
S
t
o
c
k
100,000Paid-in Capital in Excess of Stated Value - Common Stock $20,000
0%
reduce the amount of retained earnings available for dividend declarations.
Closeknit Corporation has a limited number of stockholders. As a privately held corporation, Closeknit is exempt from
Report Question
0%
issuing reports to the SEC.
0%
common stock of $1,500,000.
0%
increase paid-in capital.
0%
2-for-1 stock split
One major difference between a partnership and a corporation is that
Report Question
0%
in a partnership, the acts of the owners bind the partnership, but in a corporation, the acts of the owners do not bind the partnership unless they are also an agent of the corporation.
0%
The Paid-in Capital in Excess of Par Value account must be designated as either Preferred Stock or Common Stock if both types of stock are issued, whereas the designation is not necessary if only common stock is issued.
0%
Both a stock split and a stock dividend will increase the number of shares outstanding but will have no effect on total stockholders' equity.
0%
a company with a net income of
17
m
i
l
l
i
o
n
,
p
r
e
f
e
r
r
e
d
d
i
v
i
d
e
n
d
s
o
f
950,000, and average common stockholders' equity of $90 million
The issuance of common stock affects
Report Question
0%
A corporation can buy, sell, and own property.
0%
increase paid-in capital.
0%
The entire proceeds are credited to common stock.
0%
only the paid-in capital account.
When a corporation purchases treasury stock, the acquisition
Report Question
0%
a company with
18
m
i
l
l
i
o
n
c
a
s
h
d
i
v
i
d
e
n
d
s
d
e
c
l
a
r
e
d
o
n
c
o
m
m
o
n
s
t
o
c
k
a
n
d
a
n
e
t
i
n
c
o
m
e
o
f
94 million
0%
increase paid-in capital.
0%
The entire proceeds from the issuance of the stock become legal capital.
0%
decreases the company's total assets and total stockholders' equity.
Stewart Soaps began business by issuing 25,000 shares of
5
p
a
r
v
a
l
u
e
c
o
m
m
o
n
s
t
o
c
k
f
o
r
20 per share. During its first year, the corporation sustained a net loss of $5,The year-end balance sheet would show
Report Question
0%
common stock of $1,500,000.
0%
common stock of $125,000.
0%
in a partnership, the acts of the owners bind the partnership, but in a corporation, the acts of the owners do not bind the partnership unless they are also an agent of the corporation.
0%
The corporation's life is stipulated in its charter.
What happens if no-par stock is issued without a stated value?
Report Question
0%
decreases the company's total assets and total stockholders' equity.
0%
increase paid-in capital.
0%
The entire proceeds are credited to common stock.
0%
The entire proceeds from the issuance of the stock become legal capital.
Edge Corporation issues 20,000 shares of
5
s
t
a
t
e
d
v
a
l
u
e
n
o
p
a
r
s
t
o
c
k
i
n
e
x
c
h
a
n
g
e
f
o
r
l
a
n
d
w
i
t
h
a
n
a
d
v
e
r
t
i
s
e
d
p
r
i
c
e
o
f
125,000 when the stock is actively trading for $6 per share. Journalize the entry to recognize the exchange.
Report Question
0%
$9,000.
0%
Land
120
,
000
C
o
m
m
o
n
S
t
o
c
k
100,000Paid-in Capital in Excess of Stated Value - Common Stock $20,000
0%
Common Stock
10
,
000
a
n
d
P
a
i
d
−
i
n
C
a
p
i
t
a
l
i
n
E
x
c
e
s
s
o
f
P
a
r
−
C
o
m
m
o
n
S
t
o
c
k
2,000.
0%
Land = Debit of
93
,
750
;
P
r
e
f
e
r
r
e
d
S
t
o
c
k
=
C
r
e
d
i
t
o
f
81,250; Paid-in Capital in Excess of Par—Preferred Stock = Credit of $12,500
Which value of stock is most relevant for potential stockholders of a corporation?
Report Question
0%
The entire proceeds are credited to common stock.
0%
average common
0%
increase paid-in capital.
0%
market price
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
0
Answered
1
Not Answered
25
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page