Quiz Answers for Ch15,16,17

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Ch15
Question 1 of 10| 1.0 Points|
On December 1, 2012, Abel Corporation exchanged 30,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Abel's total stockholders' equity will increase by | | |

| A. $1,200,000.| |
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| B. $1,350,000.| |
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| C. $300,000.| |
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| D. $1,650,000. | |

Answer Key: D|
Question 2 of 10| 1.0 Points|
If management wishes to "capitalize" part of the earnings, it may issue a | | |
| A. property dividend.| |
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| B. stock dividend.| |
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| C. liquidating dividend. | |
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| D. cash dividend.| |

Answer Key: B|
Question 3 of 10| 1.0 Points|
Anders, Inc., has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2011. The board of directors declares and pays a $90,000 dividend in 2012 and in 2013. What is the amount of dividends received by the common stockholders in 2013? | | |

| A. $90,000| |
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| B. $0| |
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| C. $30,000| |
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| D. $50,000| |

Answer Key: C|
Question 4 of 10| 1.0 Points|
Luther Inc., has 3,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $7,500 dividend in 2012. In 2013, $36,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2013? | | |

| A. $25,500| |
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| B. $ 9,000| |
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| C. $18,000| |
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| D. $10,500| |

Answer Key: D|
Question 5 of 10| 1.0 Points|
How should cumulative preferred dividends in arrears be shown in a corporation's statement of financial position? | | |
| A. Note disclosure| |
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| B. Increase in stockholders' equity| |
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| C. Increase in current liabilities| |
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| D. Increase in current liabilities for the amount expected to be declared within the year or operating cycle, and increase in long-term liabilities for the balance| |

Answer Key: A|
Question 6 of 10| 1.0 Points|
Stockholders' equity is generally classified into two major categories: | | |
| A. retained earnings and unappropriated capital.| |
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| B. appropriated capital and retained earnings.| |
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| C. earned capital and contributed capital.| |
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| D. contributed capital and appropriated capital.| |

Answer Key: C|
Question 7 of 10| 1.0 Points|
Direct costs incurred to sell stock such as underwriting costs should be accounted for as 

1. a reduction of additional paid-in capital. 
2. an expense of the period in which the stock is issued. 
3. an intangible asset.  |
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| A. 1| |
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| B. 2| |
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| C. 3| |
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| D. 1 or 3| |

Answer Key: A|
Question 8 of 10| 1.0 Points|
Treasury shares are |
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| A. shares held as an investment by the treasurer of the corporation.| | | |
| B. shares held as an investment of the corporation.| |
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| C. issued and outstanding shares.| |
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| D. issued but not outstanding shares.| |

Answer Key: D|
Question 9 of 10| 1.0 Points|
Under IFRS compliance requirements the Revaluation Surplus is | | |
| A. only utilized to record the changes in depreciable items – plant and equipment.| | | |
| B. utilized to record the changes in property, plant, and equipment.| | | |
| C. reported as contributed capital.| |
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| D....
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