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TheAceStudent:StrayerACC206AccountingPrinciplesIIWeek6Quiz(71Questions)
StrayerACC206AccountingPrinciplesIIWeek6Quiz(71
Questions)
StrayerACC206AccountingPrinciplesIIWeek6Quiz(71Questions)
TRUEFALSESTATEMENTS
1.Dividendsmaybedeclaredandpaidincashorstock.
True
False
2.Cashdividendsarenotaliabilityofthecorporationuntiltheyaredeclaredbytheboardof
directors.
True
False
3.Theamountofacashdividendliabilityisrecordedonthedateofrecordbecauseitisonthat
datethatthepersonsorentitieswhowillreceivethedividendareidentified.
True
False
4.A10%stockdividendwillincreasethenumberofsharesoutstandingbutthebookvalueper
sharewilldecrease.
True
False
5.A3for1commonstocksplitwillincreasetotalstockholdersequitybutreducetheparorstated
valuepershareofcommonstock.
True
False
6.Retainedearningsrepresentstheamountofcashavailablefordividends.
True
False
7.Netincomeofacorporationshouldbeclosedtoretainedearningsandnetlossesshouldbe
closedtopaidincapitalaccounts.
True
False
8.AdebitbalanceintheRetainedEarningsaccountisidentifiedasadeficit.
True
False
9.AcorrectioninincomeofapriorperiodinvolveseitheradebitorcredittotheRetainedEarnings
account.
True
False
10.Priorperiodadjustmentstoincomearereportedinthecurrentyearsincomestatement.
True
False
11.Retainedearningsthatarerestrictedareunavailablefordividends.
True
False
12.Restrictedretainedearningsareavailableforpreferredstockdividendsbutunavailablefor
commonstockdividends.
True
False
13.Aretainedearningsstatementshowsthesameinformationasacorporationincomestatement.
True
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TheAceStudent:StrayerACC206AccountingPrinciplesIIWeek6Quiz(71Questions)
False
14.Adetailedstockholdersequitysectioninthebalancesheetwilllistthenamesofindividuals
whoareeligibletoreceivedividendsonthedateofrecord.
True
False
15.CommonStockDividendsDistributableisshownwithinthePaidinCapitalsubdivisionofthe
stockholdersequitysectionofthebalancesheet.
True
False
16.Returnoncommonstockholdersequityiscomputedbydividingnetincomebyending
stockholdersequity.
True
False
17.Manycompaniesprepareastockholdersequitystatementinsteadofpresentingadetailed
stockholdersequitysectioninthebalancesheet.
True
False
18.Amajordifferenceamongcorporations,proprietorships,andpartnershipsisthatacorporations
incomestatementreportsincometaxexpense.
True
False
19.Acorporationincursincometaxexpenseonlyifitpaysdividendstostockholders.
True
False
20.Incometaxexpenseusuallyappearsasaseparatesectiononacorporationincomestatement.
True
False
21.Earningspershareiscalculatedbydividingnetincomebytheweightedaveragenumberof
sharesofpreferredstockandcommonstockoutstanding.
True
False
22.Preferreddividendspaidareaddedbacktonetincomeincalculatingearningspersharefor
commonstockholders.
True
False
23.Earningspershareindicatesthenetincomeearnedbyeachshareofoutstandingcommon
stock.
True
False
24.Earningspershareisreportedforbothpreferredandcommonstock.
True
False
25.Mostcompaniesarerequiredtoreportearningspershareonthefaceoftheincomestatement.
True
False
AdditionalTrueFalseQuestions
26.Adividendbasedonpaidincapitalistermedaliquidatingdividend.
True
False
27.CommonStockDividendsDistributableisreportedasadditionalpaidincapitalinthe
stockholdersequitysection.
True
False
28.ApriorperiodadjustmentisreportedasanadjustmentofthebeginningbalanceofRetained
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TheAceStudent:StrayerACC206AccountingPrinciplesIIWeek6Quiz(71Questions)
Earnings.
True
False
29.Incometaxexpenseandtherelatedliabilityforincometaxespayablearerecordedwhentaxes
arepaid.
True
False
30.Earningspershareisreportedonlyforcommonstock.
True
False
MULTIPLECHOICEQUESTIONS
31.Eachofthefollowingdecreasesretainedearningsexcepta
a.cashdividend.
b.liquidatingdividend.
c.stockdividend.
d.Allofthesedecreaseretainedearnings.
StrayerACC206AccountingPrinciplesIIWeek6Quiz(71Questions)
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