ACCT 211 Final Exam

(Ch. 11) Cash inflows and outflows involving STOCKHOLDERS and CREDITORS are classified as __________ activities

Financing

(Ch. 10) _________-____ ________ and _________ __________ are sources of shareholders' equity

Paid-in capital, Retained earning

(Ch. 10) Retained Earning of $100,000 represents a corporation's cumulative earnings ___________ and is shown on the ____________ ____________

Kept, Balance Sheet

(Ch. 10) The date on which a company determines the registered owners of stock who will receive a divdend is the _________ date

Record

(Ch. 10) Investors earn a return on stock investments by: - -

Selling stock for more than it costs Receiving dividends

(Ch. 10) A __________ __________ dividend is valued at market value

Small stock

(Ch. 11) The financial statement that provides information about cash receipts and cash disbursements for the period.

Statement of cash flows

(Ch. 10) The ____________ of _______________ equity summarizes the changes summarizes the changes in the stockholders' equity account over a period of time

Statement, stockholders,

(Ch. 10) A ________ to dividends payable and a _________ to dividends is the journal entry to record the definition of a dividend

Credit, Debit

(Ch. 10) Dividends payable is recorded as a credit on the ____________ date and is approved by the board of directors

Declaration

(Ch. 10) Dividends payable is recorded as a CREDIT on the ____________ ____________

Declaration Date

(Ch. 11) A ___________ in accounts payable will result in a _______________ to the net cash flow from OPERATING activites

Decrease

(Ch. 11) A _____________ in the ACCOUNT RECEIVABLE from the prior period is added to NET INCOME in the _____________ activities section of the statement of cash flows

Decrease, Operating

(Ch. 11) The payment of ________ and changes in __________ payable are classified as financing activities

Dividends

(Ch. 10) Preferred stock carries priority over common stock: Both for _________ and at ____________

Dividends, liquidation

(Ch. 10) Investors who acquire preferred stock:

Do not have voting rights

(Ch. 11) Cash flows from ___________ activities include both inflows and outflows of cash from the EXTERNAL financing of a business

Financing

(Ch. 10) On the declaration date, liabilities are __________

Increased

(Ch. 11) The ___________ method started with net income and adjusts it by eliminating the effects of transactions that do not involve cash

Indirect

(Ch. 10) The following are sources of shareholders' equity: -______-____ _____________ -_____________ ___________

Paid-in capital, Retained earnings

(Ch. 11) The "Asset turnover" measures the sales revenue generated _____ dollar of assets

Per

(Ch. 10) Preferred stock: -Has __________ to dividends -Generally _______ _______ have voting rights -Is useful for __________ capital without reducing common stockholder's control

Preferences, does not, raising

(Ch. 10) The right of a preferred shareholder to have her stock repurchased by the corporation for cash is referred to as a ________________ right

Redemption

(Ch. 10) ____________ dividends required a journal entry

Stock

(Ch. 10) __________ stocks are priced low in relation to current earnings

Value

(Ch. 10) ___________ are typically subject to double taxation

Corporations

(Ch. 10) A corporation _______ _______ have legal obligation to pay dividends

Does not

(Ch. 10) When a corporation issues shares of common stock for an amount above par: -___________ to additional paid-in capital -___________ to common sock

Credit, Credit

(Ch. 10) Cumulative preferred stock is entitled to receive current dividends plus dividends in _________ before any future common dividends can be paid

Arrears

(Ch. 10) Mega corporation REPURCHASED 1,000 shares of its $1 par value COMMON STOCK for $8,000. The effect of this transaction the accounting equation includes: -Decrease in _________ -Decrease in_____________ ___________

Assets, Stockholder's equity

(Ch. 10) ___________ ____________ are the total number of shares available to sell as indicated in the company's articles of incorporation

Authorized shares

(Ch. 10) A corporation records and increase in dividends on the __________ date

Declaration

(Ch. 10) On the payment date, current assets are ____________

Decreased

(Ch. 10) Assets _______ liabilities is ___________ to shareholder's equity

Less, equal

(Ch. 10) Dividends payable is a __________ account with a normal ___________ balance and is recorded on the __________ date

Liability, Credit, Declaration

(Ch. 11) -A ______ on sale of land -__________ expense -__________ in current asset are ADDED to the NET INCOME

Loss, Depreciation, Decrease

(Ch. 10) Return On Equity (ROE) relates __________ ___________ to the average ___________________ equity

Net income, Stockholder's

(Ch. 10) Stock dividends: -Have ____ change on total stockholder's equity -_________ common stock -_________ retained earnings

No, Increase, Decrease

(Ch. 10) Only ____________ common shares are eligible to receive dividends

Outstanding

(Ch. 10) _____________ ____________ are the number of shares issued less treasury shares repurchased by the corporation

Outstanding shares

(Ch. 10) The dividend payment date is when cash is _________ to satisfy the dividend liability

Paid

(Ch. 10) __________ __________ have no change on total stockholders' equity

Stock splits

(Ch. 11) Issuing _______to __________ is classified as a FINANCING activity

Stock, Owners

(Ch. 10) Daffy Duct Inc. Issued 10,000 shares of $1 par value common stock at $5/share. What is the effect of this transaction?

$50,000 increase in total SH's equity $50,000 increase in total assets

(Ch. 11) The "________ flow ___ ________" ratio measures the operating cash flows generated for EACH dollar of sales

Cash, To, Sales

(Ch. 10) The journal entry to record reissuing treasury stock at a price below the cost of treasury stock includes a: __________ To treasury stock __________ To Additional Paid-In capita ___________ To cash

Credit, Debit, Debit

(Ch. 10) Earning Per Share (EPS) appears on the ________ _________

Balance sheet

(Ch. 11) Which of the following items are classified as CASH OUTFLOWS from OPERATING ACTIVITES on the statement of cash flows? -Interest paid on __________ -Purchase of ______________ -Payment on ______________

Bonds, Supplies, Account

(Ch. 10) Par value is also referred to as ______ ______

Capital amount

(Ch. 11) The direct method for preparing the statement of cash flows reports: ________ received and ________ paid from operating activities

Cash

(Ch. 11) Issuing stock to owners is classified as a ______________ activity

Financing (They're investing in the business, the business is not)

(Ch. 11) Net cash flows from investing activities represents the difference between the __________ and ___________ of cash from investing activities

Inflows, Outflows

(Ch. 10) Shareholder's equity consists of: -Amounts ___________ by shareholders -Amounts ____________ by the corporation

Invested, Earned

(Ch. 11) Cash flows from _____________ activities are both outflows and inflows of cash cased by the acquisition and disposal of LONG-TERM ASSETS

Investing

(Ch. 10) A stock dividend will cause total assets to ___________ ______ __________

Remain the same

(Ch. 11) Issuing _________ to owners is classified as a FINANCING activity

Stock

(Ch. 10) A _______ dividend has no effect on total owners' equity

Stock dividend

(Ch. 10) Share of stock that are repurchased are referred to as _____________ stock

Treasury

(Ch. 10) The dividend payment date is when: -___________ is decreased -___________ ____________ is decreased

Cash, Dividends payable

(Ch. 11) _____________ on account and ____________ _____________ on notes receivable are classified as cash inflows from operating activities

Collection, interest received

(Ch. 10) Stock splits and stock dividends cause total ___________ ___________ to remain the same

Stockholders' equity

(Ch. 11) Depreciation expense and losses are added back to the net income because they: -Were ___________ in the deriving net income -Do not require an ____________ of cash

Subtracted, Outflow

(Ch. 10) T/F: Common shares issued with a stated value are recorded in the same manner as par value stock

True