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Unformatted text preview: C HAPTER 11 Equity Financing M ULTIPLE C HOICE Q UESTIONS Theory/Definitional Questions 1 Preferred stock and basic shareholder rights 2 Features of preferred stock as perceived by common shareholders 3 Basic shareholder rights 4 Determining compensation expense under the intrinsic value method 5 Accounting for stock options under the fair value method 6 Accounting for stock options under the intrinsic value method 7 Disclosures--fair value method vs. intrinsic value method 8 Adjustment to retained earnings on stock conversions 9 Equity transactions effecting retained earnings 10 State laws and their effect on dividend payments 11 Components of comprehensive income 12 Use of equity reserves under international accounting standards 13 Definition of par value of common stock 14 Entry to record fully paid stock subscription 15 Treatment of dividends not declared or paid on cumulative preferred stock 16 Presentation of treasury stock 17 Treatment of gains/losses on treasury stock sale/purchase 18 Determine credit amount per share to common stock (stock rights) 19 Journalize exercise of stock rights 20 Effect of preferred stock issuance on preferred stock outstanding 21 Effect of stock split on assets, equity, and paid-in capital 22 Effect of subscription sale on additional paid-in capital 23 Classification of stock warrants outstanding 24 When common stock shares issued are greater than shares outstanding 25 Cost/par value method of accounting for treasury stock 26 Cost/par value method of accounting for treasury stock 27 Effect of cost method of accounting on retained earnings 28 Effect of par value method on additional paid-in capital and retained earnings 29 Definition of stock rights 30 Entry for lapse in stock rights 31 Appropriations of retained earnings 32 Valuation of property dividend 33 Distribution of a property dividend 149 150 Chapter 11 Equity Financing 34 Definition of liquidating a dividend 35 Treatment of excess on property dividend 36 Effect of dividend on retained earnings and stockholders' equity 37 Effect of a stock dividend 38 Transactions causing an increase in retained earnings 39 Reporting undistributed stock dividends 40 Appropriation of retained earnings/treasury stock purchases 41 Implementation of a quasi-reorganization 42 Effect of quasi-reorganization on capital and retained earnings 43 Effect of dividend distribution on additional paid-in capital and retained earnings 44 Reasons for journalizing stock dividend 45 Effect of cash dividend declaration on retained earnings 46 Declaration of liquidating dividend 47 Valuation of property dividend 48 Effect of stock split or dividend on retained earnings 49 Effect of stock dividend on retained earnings and total stockholders' equity Computational Questions 50 Computation of total contributed capital 51 Computation of increase in additional paid-in capital 52 Journalize acquisition of treasury stock 53 Calculate stockholders' equity using cost method 54 Journalize sale of treasury stock...
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This note was uploaded on 10/29/2010 for the course BUSINESS S 1 taught by Professor Vinc during the Spring '10 term at Georgian.
- Spring '10