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
