Skousen Practice 3 - Copy

Skousen Practice 3 - Copy - ACCT 5010 Intermediate...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 5010 Intermediate Accounting II Practice Test, Chapter 11 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Stock warrants outstanding should be classified as a. liabilities. b. reductions of capital contributed in excess of par value. c. capital stock. d. additions to contributed capital. ____ 2. When treasury stock is purchased for cash at more than its par value, what is the effect on total stockholders' equity under each of the following methods? Cost Method Par Value Method a. No effect Decrease b. Decrease No effect c. Increase Increase d. Decrease Decrease ____ 3. Five thousand shares of common stock with a par value of $10 per share were issued initially at $12 per share. Subsequently, 1,000 of these shares were acquired as treasury stock at $15 per share. Assuming that the par value method of accounting for treasury stock transactions is used, what is the effect of the acquisition of the treasury stock on each of the following? Additional Retained Paid-In Capital Earnings a. Increase No effect b. Increase Decrease c. Decrease Increase d. Decrease Decrease ____ 4. When a portion of stockholders' original investment is returned in the form of a dividend, it is called a a. compensating dividend. b. liquidating dividend. c. property dividend. d. equity dividend.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
____ 5. If 40 percent of the recent dividend paid by Packers Corporation was correctly considered to be a liquidating dividend, how would this distribution affect each of the following accounts? Additional Retained Paid-In Capital Earnings a. No effect Decrease b. No effect No effect c. Decrease No effect d. Decrease Decrease ____ 6. How would retained earnings be affected by the declaration of each of the following? Stock Dividend
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Skousen Practice 3 - Copy - ACCT 5010 Intermediate...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online