Chapter 10
par value
what is the value that determines an entity's legal capital?
assets and stockholders equity increase
when a company issues common stock for cash....
contra equity
the treasury account is a(n) ________ ____________ account
maximum number of shares that can be issued for each class of stock.
Authorized stock represents the
B
Issued shares represent the a. maximum number of shares that can be sold by the corporation. b. number of shares that the corporation has sold. c. number of shares that are currently held by stockholders. d. number of previously issued shares that have been repurchased by the corporation.
true
T/F: Both stock dividends and stock splits increase the number of a corporation's outstanding shares without altering the proportionate ownership of the corporation.
true
T/F: Comprehensive income represents the increase in net assets resulting from all transactions occurring during the accounting period except transactions with owners.
true
T/F: In general, retained earnings represents accumulated earnings of the corporation less dividends paid.
balance sheet and the statement of cash flows
cash is reported on what two financial statements
number of shares that are currently held by stockholders.
Outstanding shares represent the
false
T/F: Since stock dividends are paid with shares of stock instead of cash, no reduction in Retained Earnings is recorded.
true
T/F: Treasury stock is reported as a reduction of stockholders' equity.
true
T/F: When a corporation declares a dividend, a liability must be recorded.
true
T/F: shareholders in common stock have voting privileges, while shareholders in preferred stock do not
number of previously issued shares that have been repurchased by the corporation.
Treasury shares represent the
dividend
a distribution of profits to owners by a corporation is known as
paid-in capital
amounts exchanged for ownership in a corporation
higher
outstanding checks cause the bank balance to be __________ than the business's cash account balance
issued shares- treasury stock
outstanding shares=
cumulative preferred stockholders
receive current year dividend plus any dividends in arrears
treasury stock
repurchases of previously issued stock is known as the purchase of
B
the 3 key cash controls does not include a. bank reconciliation b. purchase of stocks and bonds c. cash over and short d. petty cash funds