Under IFRS, components of other comprehensive income:

Under IFRS, components of other comprehensive income: 

A. can be reported as part of a single statement of comprehensive income.
B. are not permitted to be reported.
C. must be reported in a separate statement of comprehensive income.
D. can be reported as part of a statement of shareholders' equity.

Answer: A

Which of the following statements is true with regard to preferred stock (preference shares)?

Which of the following statements is true with regard to preferred stock (preference shares)? 

A. Most preferred stock (preference shares) is reported under U.S. GAAP as debt.
B. Most preferred stock (preference shares) is reported under IFRS as equity.
C. Under U.S. GAAP, mandatorily redeemable preferred stock is reported as equity.
D. Under IFRS, preferred stock dividends are reported in the income statement as interest expense.

Answer: D

Revenue and expense items and components of other comprehensive income can be reported in the statement of shareholders' equity using:

Revenue and expense items and components of other comprehensive income can be reported in the statement of shareholders' equity using: 

A. U.S. GAAP.
B. IFRS.
C. Both U.S. GAAP and IFRS.
D. Neither U.S. GAAP nor IFRS.

Answer: A

Revenue and expense items and components of other comprehensive income can be reported in a single statement of comprehensive income using:

Revenue and expense items and components of other comprehensive income can be reported in a single statement of comprehensive income using: 

A. U.S. GAAP.
B. IFRS.
C. Both U.S. GAAP and IFRS.
D. Neither U.S. GAAP nor IFRS.

Answer: C

Mandatorily redeemable preferred stock (preference shares) is reported as debt with the dividends reported in the income statement as interest expense using:

Mandatorily redeemable preferred stock (preference shares) is reported as debt with the dividends reported in the income statement as interest expense using: 

A. U.S. GAAP.
B. IFRS.
C. Both U.S. GAAP and IFRS.
D. Neither U.S. GAAP nor IFRS.

Answer: C

Heidi Aurora Imports applies International Financial Reporting Standards. The company issued shares of the company's Class B stock. Heidi Aurora Imports should report the stock in the company's statement of financial position:

Heidi Aurora Imports applies International Financial Reporting Standards. The company issued shares of the company's Class B stock. Heidi Aurora Imports should report the stock in the company's statement of financial position: 

A. among liabilities if the shares are mandatorily redeemable or redeemable at the option of the shareholder.
B. as equity unless the shares are mandatorily redeemable.
C. as equity unless the shares are redeemable at the option of the issuer.
D. among liabilities unless the shares are mandatorily redeemable.

Answer: A

Which of the terms or phrases listed below is more associated with financial statements prepared in accordance with U.S. GAAP than with International Financial Reporting Standards?

Which of the terms or phrases listed below is more associated with financial statements prepared in accordance with U.S. GAAP than with International Financial Reporting Standards? 

A. Accumulated other comprehensive income.
B. Investment revaluation reserve.
C. Share premium.
D. Preference shares.

Answer: A

F Co. declares a 5% stock dividend. If the market price at declaration is $12 per share, a shareholder with 110 shares likely would receive:

F Co. declares a 5% stock dividend. If the market price at declaration is $12 per share, a shareholder with 110 shares likely would receive: 

A. 5 additional shares.
B. fractional share rights for 5 ½ shares.
C. 5 additional shares and $6 in cash.
D. 5 additional shares and a fractional share right for 2 ½ shares.

Answer: C

R Co. has outstanding 100 million shares, $1 par common shares, selling for $8 per share. After a 1 for 4 reverse stock split:

R Co. has outstanding 100 million shares, $1 par common shares, selling for $8 per share. After a 1 for 4 reverse stock split: 

A. R would have 25 million shares, $4 par per share.
B. The market price per share would be about $2.
C. Fractional shares would be issued.
D. Retained earnings would be reduced.

Answer: A

When a company issues a stock dividend which of the following would be affected?

When a company issues a stock dividend which of the following would be affected? 

A. Earnings per share.
B. Total assets.
C. Total liabilities.
D. Total stockholder's equity.

Answer: A

A small stock dividend is defined as one that is:

A small stock dividend is defined as one that is: 

A. Less than or equal to 40%.
B. Less than 40%.
C. Less than or equal to 10%.
D. Less than 25%.

Answer: D

Stock splits are issued primarily to:

Stock splits are issued primarily to: 

A. Increase the number of outstanding shares.
B. Increase the number of authorized shares.
C. Increase legal capital.
D. Induce a decline in market value per share.

Answer: D

The declaration and issuance of a dividend on shares of common stock:

The declaration and issuance of a dividend on shares of common stock: 

A. Has no effect on assets, liabilities, or total shareholders' equity.
B. Decreases total shareholders' equity and increases common stock.
C. Decreases assets and decreases total shareholders' equity.
D. Does not change retained earnings or paid-in capital.

Answer: A

Lucid Company declared a property dividend of 20,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $5 per share. Market value was $10 per share on the declaration date and $11 per share on the distribution date. What is the amount of the dividend?

Lucid Company declared a property dividend of 20,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $5 per share. Market value was $10 per share on the declaration date and $11 per share on the distribution date. What is the amount of the dividend? 

A. $100,000.
B. $200,000.
C. $220,000.
D. $300,000.

Answer: B

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration?

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration?

A. Option A
B. Option B
C. Option C
D. Option D

Answer: A

ABC declared a property dividend. The dividend consisted of 10,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $4 per share and had a $1 par value. The value of the shares on the declaration date is $7 per share. What is the first entry that should be recorded related to this dividend?

ABC declared a property dividend. The dividend consisted of 10,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $4 per share and had a $1 par value. The value of the shares on the declaration date is $7 per share. What is the first entry that should be recorded related to this dividend?

A. Option A
B. Option B
C. Option C
D. Option D

Answer: D

Beagle Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $300,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively?

Beagle Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $300,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively? 

A. $6; $12.
B. $18; $6.
C. $6; $6.
D. None of the above is correct.

Answer: B

Pug Corporation has 10,000 shares of $10 par common stock outstanding and 20,000 shares of $100 par, 6% noncumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $150,000 dividend will be paid. What are the dividends per share for preferred and common, respectively?

Pug Corporation has 10,000 shares of $10 par common stock outstanding and 20,000 shares of $100 par, 6% noncumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $150,000 dividend will be paid. What are the dividends per share for preferred and common, respectively? 

A. $7.50; $0.
B. $6; $3.
C. $6; $1.50.
D. None of the above is correct.

Answer: B

At the beginning of 2009, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred shareholders. What amount of dividends will a shareholder owning 100 shares received in 2011 if Emily pays $1,000,000 in dividends?

At the beginning of 2009, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred shareholders. What amount of dividends will a shareholder owning 100 shares received in 2011 if Emily pays $1,000,000 in dividends? 

A. $500.
B. $1,500.
C. $1,650.
D. $10,000.

Answer: B

When a property dividend is declared, the property to be distributed should be revalued to fair value as of the:

When a property dividend is declared, the property to be distributed should be revalued to fair value as of the: 

A. Record date.
B. Date of distribution.
C. Date of declaration.
D. Announcement date.

Answer: C