Cash dividends paid on common stock would be reported in the statement of cash flows in:

Cash dividends paid on common stock would be reported in the statement of cash flows in: A) The cash flows from financing activities section B) The...

On the statement of cash flows, the cash flows from financing activities section would include:

On the statement of cash flows, the cash flows from financing activities section would include: A) Receipts from the sale of investments B) Payments...

Cash paid for preferred stock dividends should be shown on the statement of cash flows under:

Cash paid for preferred stock dividends should be shown on the statement of cash flows under: A) Investing activities B) Financing activities C) Both...

Earnings per share is an indication of how much:

Earnings per share is an indication of how much: A) The company has in cash for each share of outstanding common stock B) The company earned for...

The excess of sales price of treasury stock over its cost should be credited to:

The excess of sales price of treasury stock over its cost should be credited to: A) Treasury Stock Receivable B) Premium on capital stock C) Additional...

Which of the following statements is true regarding a corporation's purchase of treasury stock?

Which of the following statements is true regarding a corporation's purchase of treasury stock? A) The cost of treasury stock is a reduction in stockholders'...

All of the following are reasons that a corporation may purchase treasury stock except:

All of the following are reasons that a corporation may purchase treasury stock except: A) If it needs the stock for its employee stock bonus program B)...

Treasury shares represent the:

Treasury shares represent the: A) Number of previously issued shares that have been repurchased by the corporation B) Number of shares that the corporation...

Dividends in arrears are required to be reported in:

Dividends in arrears are required to be reported in: A) A liability account B) A contra-equity account C) The stockholders' equity section of the...

If a corporation issues cumulative, participating preferred stock, which of the following is true regarding the rights of the preferred stockholders?

If a corporation issues cumulative, participating preferred stock, which of the following is true regarding the rights of the preferred stockholders? A)...

Many stockholders choose to invest in preferred stock because:

Many stockholders choose to invest in preferred stock because: A) Preferred stock can always be converted into common stock at the stockholder's option B)...

What is the primary reason for a stock split?

What is the primary reason for a stock split? A) To distribute cash to the investor B) To decrease the market value of the stock C) To decrease the...

When is liability for cash dividends created?

When is liability for cash dividends created? A) At the end of each fiscal year B) At the date of declaration C) At the date of record D) At the date...

On January 15, 2011, Rockney Systems, Inc. paid a cash dividend that had been declared prior to the end of its 2010 fiscal year. The entry to pay the dividends includes a debit to:

On January 15, 2011, Rockney Systems, Inc. paid a cash dividend that had been declared prior to the end of its 2010 fiscal year. The entry to pay the...

When a corporation declares a small stock dividend, which of the following is false?

When a corporation declares a small stock dividend, which of the following is false? A) Cash decreases B) Total stockholders' equity remains the same C)...

When a corporation declares a stock dividend, which of the following is true?

When a corporation declares a stock dividend, which of the following is true? A) Cash decreases B) Equity remains the same C) Equity decreases D)...

When a corporation pays a previously declared cash dividend, which of the following is true?

When a corporation pays a previously declared cash dividend, which of the following is true? A) Cash increases B) Liabilities decrease C) Equity...

After a corporation declares a cash dividend, what takes place on the date of record?

After a corporation declares a cash dividend, what takes place on the date of record? A) Cash decreases B) Liabilities decrease C) Equity decreases D)...

When a corporation declares a cash dividend, which of the following is true?

When a corporation declares a cash dividend, which of the following is true? A) Cash decreases B) Liabilities decrease C) Equity decreases D) No...

When a corporation decides whether to pay a cash dividend, which of the following is an important consideration?

When a corporation decides whether to pay a cash dividend, which of the following is an important consideration? A) The balances in the corporation's...

If a corporation declares a 2-for-1 stock split, which of the following is true?

If a corporation declares a 2-for-1 stock split, which of the following is true? A) A journal entry is required to show the effect on the stockholders'...

If a corporation declares for a 2-for-1 stock split, which of the following is true?

If a corporation declares for a 2-for-1 stock split, which of the following is true? A) The amount of stockholders' equity doubles as a result of...

If a corporation declares a 2-for-1 stock split, which of the following is true?

If a corporation declares a 2-for-1 stock split, which of the following is true? A) A new class of stock must be authorized with twice the number...

The journal entry to issues 1,000,000 shares of $6 par common stock for $8.00 per share on January 2nd would be:

The journal entry to issues 1,000,000 shares of $6 par common stock for $8.00 per share on January 2nd would be: A) Cash Common stock Additional...

Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, a credit or credits are made to:

Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, a credit or credits are made to: A)...

Porter Hardware, Inc. issues $2 par common stock. Which of the following is true?

Porter Hardware, Inc. issues $2 par common stock. Which of the following is true? A) 2$ per share is presented on the balance sheet in the common...

Par value represents the:

Par value represents the: A) Arbitrary amount that establishes a minimum price for the stock when it is first issued B) Current market price of the...

Outstanding shares represent the:

Outstanding shares represent the: A) Number of previously issued shares that have been repurchased by the corporation B) Number of shares that the...

Issued shares represent the:

Issued shares represent the: A) Number of previously issued shares that have been repurchased by the corporation B) Number of shares that the corporation...

Authorized shares represent the:

Authorized shares represent the: A) Number of previously issued shares that have been repurchased by the corporation B) Number of shares that the...

Which of the following statements is true with regard to equity capital?

Which of the following statements is true with regard to equity capital? A) The number of shares actually in the hands of stockholders are called...

The ability of a corporation to obtain capital is:

The ability of a corporation to obtain capital is: A) Less than a partnership B) About the same as a partnership C) Restricted because of the limited...

Which of the following would NOT be considered an advantage of the corporate form of organization?

Which of the following would NOT be considered an advantage of the corporate form of organization? A) Government regulation B) Separate legal existence C)...

Under the corporate form of business organization:

Under the corporate form of business organization: A) Ownership rights are easily transferred B) A stockholder is personally liable for the debts...

A disadvantage of the corporate form of business entity is:

A disadvantage of the corporate form of business entity is: A) Mutual agency for stockholders B) Unlimited liability for stockholders C) Corporations...

One of the main disadvantages of the corporate form is the:

One of the main disadvantages of the corporate form is the:  A) Professional management B) Double taxation of dividends C) Charter D) Corporation...

Characteristics of a corporation include:

Characteristics of a corporation include: A) Shareholders who are mutual agents B) Direct management by the shareholders (owners). C) Its inability...

Which of the following is NOT characteristic of a corporation?

Which of the following is NOT characteristic of a corporation? A) The financial loss that a stockholder may suffer from owning stock in a public...

Which of the following is NOT a characteristic of a corporation?

Which of the following is NOT a characteristic of a corporation? A) Corporations are organized as a serape legal taxable entity B) Ownership is divided...

Select the type of business that is most likely to obtain large amounts of resources by issuing stock

Select the type of business that is most likely to obtain large amounts of resources by issuing stock A) Partnership B) Corporation C) Sole proprietorship D)...

In which of the following organization forms are the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?

In which of the following organization forms are the owners' legal responsibility for the debt of the business limited to the amount they invested in...

Which of the following statements is false regarding the issuance of stock versus bonds to raise capital for a corporation?

Which of the following statements is false regarding the issuance of stock versus bonds to raise capital for a corporation? A) The declaration of...

A building was acquired in exchange for 20,000 shares of the company's $10 par common stock. This transaction is reported on a statement of cash flows as

A building was acquired in exchange for 20,000 shares of the company's $10 par common stock. This transaction is reported on a statement of cash flows...

What was the net cash inflow from financing activities?

Consider the following transactions: Paid interest with cash $4,000 Paid cash dividends $45,000 Sold common stock for cash $1,200,000 Purchased treasury...

What was the net cash flow from investing activities?

Consider the following transactions: Cash purchase of second hand delivery van $40,000 Cash sale of an investment $12,000 Paid cash dividends $120,000 Retired...

When property, plant, or equipment are sold at price that is in excess of book value, the sales should be reported as an inflow of cash from an investing activity equal to the

When property, plant, or equipment are sold at price that is in excess of book value, the sales should be reported as an inflow of cash from an investing...

Equipment with an original cost of $140,000 and accumulated depreciation of $130,000 was sold for $12,000 cash . What amount of this transaction will be reported as an investing activity on the statement of cash flows?

Equipment with an original cost of $140,000 and accumulated depreciation of $130,000 was sold for $12,000 cash . What amount of this transaction will...

What was the net increase or decrease in cash during the period?

Consider the following: Net cash inflows from operating activities: $450,000 Net cash outflows from investing activities: ($230,000) Net cash inflows...

What was the net cash inflow (outflow) from investing activities?

Consider the following: Activity - Amount Purchased production equipment - $150,000 Sold common stock, at par - $250,000 Sold office equipment at book...

Which of the following is reported as an investing activity on the statement of cash flows?

Which of the following is reported as an investing activity on the statement of cash flows? A) sale of common stock B) purchase of office equipment C)...

The statement of cash flows prepared under the indirect method starts with

The statement of cash flows prepared under the indirect method starts with A) cash receipts and cash expenditures to compute net cash inflow or outflow...

A cash equivalent is a short-term, highly liquid investment with an original maturity date of less than

A cash equivalent is a short-term, highly liquid investment with an original maturity date of less than A) six months. B) five months. C) four months. D)...

The total change in cash as shown near the bottom of the statement of cash flows for the year should agree to which of the following?

The total change in cash as shown near the bottom of the statement of cash flows for the year should agree to which of the following? a. the difference...

Consider the following: Issued common stock for $25,000, sold office equipment for $1,200, paid cash dividends $6,000, purchased investments for $2,000, purchased new equipment for $4,000. What was the net cash inflow (outflow) from investing activities?

Consider the following: Issued common stock for $25,000, sold office equipment for $1,200, paid cash dividends $6,000, purchased investments for $2,000,...

Consider the following: Issued common stock for $25,000, sold office equipment for $1,200, paid cash dividends $6,000, purchased investments for $2,000, paid accounts payable of $4,000. What was the net cash inflow (outflow) from financing activities?

Consider the following: Issued common stock for $25,000, sold office equipment for $1,200, paid cash dividends $6,000, purchased investments for $2,000,...

Which of the following is not added to net income when computing cash flows from operations under the indirect method?

Which of the following is not added to net income when computing cash flows from operations under the indirect method? a. the net increase in accounts...

Which of the following items would not appear in the financing section of the statement of cash flows?

Which of the following items would not appear in the financing section of the statement of cash flows? a. the repurchase of the company's own stock b....

Which of the following would not appear in the investing section of the statement of cash flows?

Which of the following would not appear in the investing section of the statement of cash flows? a. purchase of inventory b. sale of obsolete equipment...

Consider the following: Net income $10,000, depreciation expense $2,000, accounts receivable increased by $700, inventory decreased by $400, and accounts payable increased by $300. Based on this information alone, what is cash flow from operating activities?

Consider the following: Net income $10,000, depreciation expense $2,000, accounts receivable increased by $700, inventory decreased by $400, and accounts...

If the balance in prepaid expenses increased during the year, what action should be taken on the statement of cash flows when following the indirect method, and why?

If the balance in prepaid expenses increased during the year, what action should be taken on the statement of cash flows when following the indirect...

In what order do the three sections of the statement of cash flows appear when reading from top to bottom?

In what order do the three sections of the statement of cash flows appear when reading from top to bottom? a. Financing, Investing, Operating b....