Many corporations prepare a statement of stockholders` equity instead of

a statement of retained earnings

A statement of stockholders` equity reports

changes in the stockholder`s equity accounts

If a corporation declared a $2 per share cash dividend, the accounts affected would be

Dividends and Dividends Payable

The three dates important in the dividend process are

date of declaration, date of record, and date of payment

A corporation issued 10,000 shares of $10 par common stock at $12 a share. The journal entry is

Dr Cash in Bank, Cr Common Stock, Cr Paid-in Capital

a distribution of cash to stockholders

The statement of stockholders` equity shows

the investments made by shareholders and net income

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Ch. 21 Review (Glencoe) Strykowski

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Answers

1
Many corporations prepare a statement of stockholders` equity instead of
a statement of retained earnings
a balance sheet
an income statement
financial statements
2
A statement of stockholders` equity reports
the status of all stockholders
the total assets held
the net income for the period
changes in the stockholder`s equity accounts
3
If a corporation issues only one class of stock it is called
class A
stock
common
preferred
4
If a corporation declared a $2 per share cash dividend, the accounts affected would be
Cash in Bank and Dividends Payable
Dividends and Dividends Payable
Cash in Bank and Dividends
Common Stock and Dividends
5
If a shareholder cannot attend a stockholders` meeting he or she may send in a
proxy
ringer
substitute
voting party
6
A corporation whose stock is widely held, has a large market, and is traded on a Stock Exchange
privatley held corporation
public domain
publicly held corporation
private enterprise
7
Corporations are different from Proprietorships and Partnerships in that they
have 2 owners or less
have unlimited liability
have limited liability
don't have to follow a lot of rules
8
The amount assigned to each share of stock is its
par value
common value
limited value
stated value
9
A corporation owned by a few persons or by a family is called a
private enterprise
closely held corporation
tightly held corporation
family business
10
The three dates important in the dividend process are
date of entry, date of declaration, and date of payment
date of declaration, date of record, and date of payment
date of record, date of entry, and date of declaration
there are no important dates
11
A corporation issued 10,000 shares of $10 par common stock at $12 a share. The journal entry is
Dr Cash in Bank, Cr Common Stock
Dr Cash in Bank, Cr Common Stock, Cr Paid-in Capital
Dr Cash in Bank, Dr Paid-in Capital, Cr Common Stock
Dr Common Stock, Dr Paid-in Capital, Cr Cash in Bank
12
If a corporation issued shares of common stock, the accounts affected would be
Cash in Bank and Retained Earnings
Cash in Bank and Common Stock
Common Stock and Income Summary
Common Stock and Retained Earnings
13
Dividends
increase retained earnings
reduce retained earnings
have no affect on retained earnings
are paid to preferred stockholders after common stockholders
14
The maximum number of shares a corporation may issue is called its
authorized common stock
issued capital stock
capital stock
authorized capital stock
15
Which of the following is an advantage that Common stock has over Preferred stock?
receive dividends first
preference over company assets in the event of liquidation
voting rights
more stable price
16
The amount of a dividend on preferred stock is
double the dividend to common stockholders
predetermined
voted on by the preferred stockholders
always the same as the dividend on common stock
17
A dividend is
paid by all corporations to their stockholders
a distribution of cash to stockholders
an increase in cash to a corporation
a payment of stockholder debt
18
The statement of stockholders` equity shows
changes in Liabilities + Stockholders' Equity
changes in total assets, net income and retained earnings
changes in total assets held
the investments made by shareholders and net income
19
Stockholders own a corporation, but to manage it they elect a
management board
board of directors
management team
direct managers
20
When dividends are declared, they are recorded in a separate account called
Dividends Declared
Dividends
Dividends Receivable
Dividends r Us

Ch. 21 Review (Glencoe) Strykowski Flashcards | StudBud