Question 1

The following amounts represent totals from the first three years of operations.Calculate the balance of Retained Earnings at the end of 2018.  201620172018 Net Income $1,200−$500$2,300 Net Cash Flows $500$300$2,800 Diwidends $200$0$200 Issuance of Stock $2,000$0$0\begin{array} { | l | r | r | r | } \hline & \mathbf { 2 0 1 6 } & \mathbf { 2 0 1 7 } & \mathbf { 2 0 1 8 } \\hline 	ext { Net Income } & \$ 1,200 & - \$ 500 & \$ 2,300 \\hline 	ext { Net Cash Flows } & \$ 500 & \$ 300 & \$ 2,800 \\hline 	ext { Diwidends } & \$ 200 & \$ 0 & \$ 200 \\hline 	ext { Issuance of Stock } & \$ 2,000 & \$ 0 & \$ 0 \\hline\end{array} Net Income  Net Cash Flows  Diwidends  Issuance of Stock ​2016$1,200$500$200$2,000​2017−$500$300$0$0​2018$2,300$2,800$200$0​​

Accepted Answer

A)  $2,600
B)  $4,600
C)  $3,100 D) None of the above
E) All of the above

Question 2

What would be the impact on the accounting equation when a company acquires treasury stock?

Accepted Answer

A)  Increase assets and increase stockholders' equity.
B)  Decrease assets and increase stockholders' equity.
C)  Decrease assets and decrease stockholders' equity.D) All of the above
E) A) and B)

Question 3

Earnings per share (EPS)measures the net income earned per share of common stock outstanding.

Accepted Answer

A) True 
 B)False

Question 4

Common stock is listed before preferred stock in the balance sheet.Preferred stock is listed before common stock in the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

Roberto Designers was organized on January 1,2018.The firm was authorized to issue 100,000 shares of $5 par value common stock.During 2018,Roberto had the following transactions relating to stockholders' equity: Issued 10,000 shares of common stock at $7 per share.Issued 20,000 shares of common stock at $8 per share.Reported a net income of $100,000.Paid dividends of $50,000.Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8) .What is the balance in the Treasury Stock account at the end of 2018?

Accepted Answer

A)  $160,000.
B)  $260,000.
C)  $30,000.D) A) and C)
E) A) and B)

Question 6

Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share.The entry to record the issuance will not include a:

Accepted Answer

A)  Debit to Cash $1,500.
B)  Credit to Additional Paid-In Capital $1,400.
C)  Credit to Common Stock of $100.
D)  All of these.E) A) and C)
F) All of the above

Question 7

When treasury stock is acquired,what is the effect on assets and stockholders' equity?

Accepted Answer

A)  Assets and stockholders' equity increase.
B)  Assets and stockholders' equity decrease.
C)  Assets increase and stockholders' equity decrease.D) A) and B)
E) A) and C)

Exam 10: Stockholders Equity

Earnings per share (EPS)measures the net income earned per share of common stock outstanding.

Correct Answer
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When treasury stock is acquired,what is the effect on assets and stockholders' equity?

Correct Answer
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Correct Answer
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What would be the impact on the accounting equation when a company acquires treasury stock?

Correct Answer
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Common stock is listed before preferred stock in the balance sheet.Preferred stock is listed before common stock in the balance sheet.

Correct Answer
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Correct Answer
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Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share.The entry to record the issuance will not include a:

Correct Answer
verified

Exam 10: Stockholders Equity

Earnings per share (EPS)measures the net income earned per share of common stock outstanding.

Correct AnswerverifiedShow Answer

When treasury stock is acquired,what is the effect on assets and stockholders' equity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What would be the impact on the accounting equation when a company acquires treasury stock?

Correct AnswerverifiedShow Answer

Common stock is listed before preferred stock in the balance sheet.Preferred stock is listed before common stock in the balance sheet.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share.The entry to record the issuance will not include a:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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