This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: The debt to total assets ratio will go up if an equal amount of assets and liabilities are added to the balance sheet chapter. TRUE-FALSE--Conceptual Answer 1. T 2. F 3. T 4. F 5. T 6. F 7. T 8. F 9. F 10. T 11. F 12. T 13. T 14. F 15. F 16. T 17. T 18. F 19. F 20. T No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Description State a corporation incorporates in. Definition of preemptive right. Common stock as residual interest. Earned capital definition. Reporting true no-par stock. Allocating proceeds in lump sum sales. Accounting for stock issued for noncash consideration. Definition of treasury stock. Reporting treasury stock under cost method. Selling treasury stock below cost. Participating preferred stock. Callable preferred stock. Restricting legal capital. Disclosing dividend policy. Affect of dividends on total stockholders' equity. Property dividends definition. Accounting for small stock dividend. Stock splits and large stock dividends. Computing rate of return on common stock equity. Computing payout ratio. MULTIPLE CHOICE--Conceptual Answer c b a b c c d d d b a b a d b a d c No. 21. 22. 23. S 24. S 25. 26. 27. 28. 29. 30. 31. 32. P 33. S 34. S 35. S 36. P 37. 38. Description Nature of stockholders' interest. Pre-emptive right. Pre-emptive right. Definition of legal capital. Definition of residual owner. Nature of stockholders' equity. Sources of stockholders' equity. Classification of stockholders' equity. Allocation methods for a lump sum issuance. Capital stock issued in payment of services. Costs of issuing capital stock. Creation of "secret reserves." Authorized shares. Par value stock. Legal restrictions for profit distributions. Acquisition of treasury shares. Treasury shares definition. Purchase of treasury stock at greater than par value. 15 - 2 Test Bank for Intermediate Accounting, Thirteenth Edition MULTIPLE CHOICE--Conceptual (cont.) Answer a a b c c b b c c b c c a a b b b b b a a b b c b a b c a c a a P S No. 39. 40. 41. 42. 43. 44. P 45. S 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. P 67. *68. *69. *70. Description Sale of treasury stock. Reissued treasury stock at less than acquisition cost. Reissued treasury stock at greater than acquisition cost. Effect of treasury stock transactions. Preferred stock--debt features. Cumulative feature of preferred stock. Reporting redeemable stock. Reporting dividends in arrears. Issued vs. outstanding common stock. Timing of entry to record dividends. Shares entitled to receive a cash dividend. Accounting for a property dividend. Distribution of a property dividend. Liquidating dividend. Entry to record a liquidating dividend. Effects of a stock dividend. Effects of a stock dividend....
View Full Document