Exam 4 – 11, 12

Book value per common share is computed by:

The price-earnings ratio is calculated by dividing:

Stockholders' equity consists of which of the following?

The number of shares that a corporation's charter allows it to sell is referred to as:

In many states, the minimum amount that stockholders must contribute to the corporation, and which is intended to protect the creditors of the corporation, is called the:

A corporation's minimum legal capital is established by recording the par or stated value of the number of shares:

Alto Company issued 7% preferred stock with a $100 par value. This means that:

A dividend preference for preferred stock means that:

Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

Changes in retained earnings are commonly reported in the:

A company made an error in calculating and reporting amortization expense in Year 1. The error was discovered in Year 2. The item should be reported as a prior period adjustment:

Retained earnings:

A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $70,000. The entry to record this exchange is:

A premium on common stock:

Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:

Which of the following is true of a stock dividend?

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is:

West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the payment of the dividend is:

The date the directors vote to declare and pay a dividend is called the:

Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30?

The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:

Treasury stock is classified as:

The statement of cash flows helps analysts evaluate all but which of the following?

The statement of cash flows helps analysts evaluate all things but which of the following?

An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

A cash equivalent is:

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

The statement of cash flows is:

Preparation of the statement of cash flows does not involve:

A statement of cash flows explains the differences between the beginning and ending balances of:

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 53,500 Accounts payable decreased by $19,500 Accounts receivable increased by $26,500 Inventories increased by $6,500 Cash dividends paid were $14,300 Depreciation expense was $21,500 Net cash provided by operating activities was:

A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:

A company reported that its bonds with a par value of $50,000 and a carrying value of $66,500 are retired for $71,400 cash, resulting in a loss of $4,900. The amount to be reported under cash flows from financing activities is:

Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Cash dividends declared for the year $40,000 Cash dividends payable at the beginning of the year $17,000 Cash dividends payable at the end of the year $13,000 The amount of cash paid for dividends was:

Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addams's statement of cash flows?

When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?