Third Home Test ACCO 112

Third Home Test ACCO 112 - Nombre Third Test ACCO 112 Fecha...

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Nombre:____________________________ Fecha:_____________________ Third Test ACCO 112 Prof. Frances Pereira 1. If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is a. Common Stock Dividends Distributable. b. Common Stock. c. Paid-in Capital in Excess of Par. d. Retained Earnings. 2. Dividends Payable is classified as a a. long-term liability. b. contra stockholders' equity account to Retained Earnings. c. current liability. d. stockholders' equity account. 3. Agler, Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2010. If the board of directors declares a $60,000 dividend, the a. preferred shareholders will receive 1/10th of what the common shareholders will receive. b. preferred shareholders will receive the entire $60,000. c. $60,000 will be held as restricted retained earnings and paid out at some future date. d. preferred shareholders will receive $30,000 and the common shareholders will receive $30,000. 4. Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2010. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 dividend in 2010. What is the amount of dividends received by the common stockholders in 2010? a. $0 b. $25,000 c. $45,000 d. $20,000 5. Lang Inc. reported net income of $270,000 during 2010 and paid dividends of $26,000 on common stock. It also has 10,000 shares of 6%, $100 par value preferred stock outstanding. Common stockholders' equity was $1,200,000 on January 1, 2010, and $1,600,000 on December 31, 2010. The company's return on common stockholders' equity for 2010 is: a. 17.4% b. 15.0% c. 13.1% d. 19.3% 6. Prior period adjustments are reported a. in the footnotes of the current year's financial statements. b. on the current year's balance sheet. c. on the current year's income statement. d. on the current year's retained earnings statement. 7. A small stock dividend is defined as a. less than 30% but greater than 25% of the corporation's issued stock. b. between 50% and 100% of the corporation's issued stock. c. more than 30% of the corporation's issued stock. d. less than 20–25% of the corporation's issued stock.
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8. Outstanding stock of the Colt Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 5%, $10 par noncumulative preferred stock. In 2009, Colt declared and paid dividends of $2,000. In 2010, Colt declared and paid dividends of $6,000. How much of the 2010 dividend was distributed to preferred shareholders? a.
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This note was uploaded on 05/08/2011 for the course ECON 101 taught by Professor Pereira during the Spring '11 term at Calumet College.

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Third Home Test ACCO 112 - Nombre Third Test ACCO 112 Fecha...

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