Quiz 5a - C. Financing activity. D. Noncash activity. 6....

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Quiz 5 Key 1. Treasury Stock is normally reported as: A. A reduction of total stockholders' equity. B. An asset account. C. A liability account. D. An expense account. 2. Both cash dividends and stock dividends: A. reduce total assets. B. reduce total liabilities. C. reduce total stockholders' equity. D. reduce retained earnings. 3. Company XYZ issues 1,000 shares of $1 par value common stock for $30 per share. Please prepare the journal entry.
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4. What would be the impact on the accounting equation when a company purchases treasury stock? A. Increase assets and increase stockholders' equity. B. Decrease assets and increase stockholders' equity. C. Decrease assets and decrease stockholders' equity. D. No effect on the accounting equation. 5. The purchase of land is classified in the statement of cash flows as a(n): A. Operating activity. B. Investing activity.
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Unformatted text preview: C. Financing activity. D. Noncash activity. 6. Operating cash flows exclude: A. Interest received. B. Interest paid. C. Dividends received. D. Dividends paid. Quiz 5 Summary Category # of Questions AACSB: Analytic 1 AACSB: Reflective Thinking 5 AICPA: Reporting 6 Blooms: Application 1 Blooms: Application 2 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Knowledge 1 Difficulty: Medium 6 Learning Objective: 10-02 Record the issuance of common stock. 1 Learning Objective: 10-04 Account for treasury stock. 2 Learning Objective: 10-05 Describe retained earnings and record cash dividends. 1 Learning Objective: 10-06 Explain the effect of stock dividends and stock splits. 1 Learning Objective: 11-01 Classify cash transactions as operating; investing; or financing activities. 2 Spiceland - Chapter 10 4 Spiceland - Chapter 11 2...
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This note was uploaded on 02/23/2012 for the course MGMT 200 taught by Professor Greigg during the Summer '08 term at Purdue.

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Quiz 5a - C. Financing activity. D. Noncash activity. 6....

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