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Unformatted text preview: CHAPTER 15 STOCKHOLDERS’ EQUITY MULTIPLE CHOICE —Conceptual Answer No. Description c 1. Nature of stockholders' interest. b 2. Pre-emptive right. a 3. Pre-emptive right. c 4. Nature of stockholders' equity. d 5. Sources of stockholders' equity. d 6. Classification of stockholders' equity. d 7. Allocation methods for a lump sum issuance. b 8. Capital stock issued in payment of services. a 9. Costs of issuing capital stock. c 10. Purchase of treasury stock at greater than par value. a 11. Sale of treasury stock. a 12. Reissued treasury stock at less than acquisition cost. b 13. Reissued treasury stock at greater than acquisition cost. c 14. Effect of treasury stock transactions. c 15. Preferred stock—debt features. b 16. Cumulative feature of preferred stock. b 17. Creation of "secret reserves." c 18. Issued vs. outstanding common stock. b 19. Timing of entry to record dividends. c 20. Shares entitled to receive a cash dividend. c 21. Accounting for a property dividend. a 22. Distribution of a property dividend. a 23. Liquidating dividend. b 24. Entry to record a liquidating dividend. b 25. Effects of a stock dividend. b 26. Effects of a stock dividend. b 27. Effect of a large stock dividend. b 28. Large stock dividend. a 29. Small stock dividend. a 30. Small stock dividend. b 31. Classification of stock dividends distributable. b 32. Effect of stock splits and stock dividends. c 33. Effect of a stock split. b 34. Disclosures in the balance sheet. a 35. Return on common stock equity calculation. d 36. Payout ratio calculation. c 37. Book value per share. c *38. Dividends and treasury stock. a *39. Noncumulative preferred stock and dividends in arrears. a *40. Disclosure of preferred dividends in arrears. *This topic is dealt with in an Appendix to the chapter. Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE —Computational Answer No. Description a 41. Composition of stockholders' equity. b 42. Calculation of total paid-in capital. b 43. Reissue treasury stock—above acquisition cost. c 44. Reissue treasury stock—cost method. c 45. Additional paid-in capital with treasury stock transactions. d 46. Calculation of additional paid-in capital. c 47. Calculation of additional paid-in capital. a 48. Total stockholders' equity with treasury stock transactions. c 49. Total stockholders' equity with treasury stock exchange. b 50. Reduction in retained earnings caused by a property dividend. c 51. Calculation of a large stock dividend. a 52. Calculation of a small stock dividend. b 53. Calculation of a small stock dividend. b 54. Small stock dividend's effect on retained earnings. b 55. Balance of retained earnings after a small stock dividend....
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