54.
A large stock dividend only occurs when a distribution of more than 50% of previously
outstanding shares is issued.
55.
A stock dividend decreases the market price of the company’s stock.
56.
All stock dividends are recorded at par value so there would never be a credit to the paid-
in capital in excess of par value account.
57.
Paid and declared preferred dividends are called dividends in arrears.
58.
Cumulative preferred stock has a right to be paid both current and prior periods’ unpaid
dividends before any dividend is paid to common shareholders.
59.
Callable preferred stock gives a corporation the option of exchanging preferred shares into
common shares at a specified rate.
60.
Participating preferred stock has a feature that allows its holders to share with common
shareholders in any dividends paid in excess of the percent or dollar amount stated on the
preferred stock.
61.
Corporations issue preferred stock to raise capital without sacrificing control of the
corporation and/or to boost the return earned by common shareholders.
62.
Treasury stock is stock that has been authorized, issued, and is outstanding.
63.
Purchasing treasury stock reduces the corporation’s assets and stockholders’ equity by
unequal amounts.
64.
If the purchase price of retired stock exceeds the net amount removed from paid-in
capital, the excess is debited to Retained Earnings.
65.
Stock that is retired is the same as authorized and unissued stock.
treasury stock is recorded.
67.
The costs of bringing a corporation into existence, including legal fees, promoter fees, and
amounts paid to obtain a charter are called:
68.
The right of common shareholders to purchase their proportional share of any common
stock later issued by the corporation is called a:
69.
A proxy is:
70.
The board of directors of a corporation:
71.
The number of shares that a corporation’s charter allows it to sell is referred to as:
72.
Par value of a stock refers to the:
73.
When a corporation has only one class of stock, the stock is called:
74.
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:
75.
The total amount of cash and other assets received by a corporation from its stockholders
in exchange for its stock is:
76.
Stated value of no-par stock is:
77.
Stockholders’ equity consists of which of the following?
78.
A class of stock that can usually be issued at any price without creating a minimum legal
capital deficiency is called:
79.
A corporation’s minimum legal capital is established by recording the par or stated value of
the number of shares:
80.
Retained earnings:
81.
Prior period adjustments to financial statements can result from:
82.
Prior period adjustments are reported in the:
83.
Changes in accounting estimates are:
84.
A company had a beginning balance in retained earnings of $430,000. It had net income of
$60,000 and paid out cash dividends of $56,250 in the current period. The ending balance
in retained earnings equals:
85.
Rights to purchase common stock at a fixed price over a specified period are:
86.
Companies report the cost of stock options in the:
87.
Changes in retained earnings are commonly reported in the:
88.
A company made an error in calculating and reporting amortization expense in 2016. The
error was discovered in 2017. The item should be reported as a prior period adjustment:
89.
The statement of changes in stockholders’ equity:
90.
The amount of income earned per share of a company’s outstanding common stock is
known as:
91.
Mayan Company had net income of $132,000. The weighted-average common shares
outstanding were 80,000. The company sold 3,000 shares before the end of the year.
There were no other stock transactions. The company’s earnings per share is:
92.
Mayan Company had net income of $132,000. The weighted-average common shares
outstanding were 80,000. The company declared a $27,000 dividend on its noncumulative,
nonparticipating preferred stock. There were no other stock transactions. The company’s
earnings per share is:
93.
The price-earnings ratio is calculated by dividing: