music chapt 10

par value is also referred to as

legal capital

corporations raise equity capital by

operating at profit issuing stock

right of a share holder to ....

convertible, redemption

document

corporate charter articles of incorporation

Mars

credit common stock

fresh

deb dividends 3,000 cred div payable 3,000 no entry

gosling

deb dividends 6,000

Stockit

no dividends payable

how should cash dividends be reported on the statement of shareholders' equity

reduction of retained earnings

the number of shares issued represents the number of shares

sold

a corporation is owned by its

stockholders

when a company declares and pays a how should end, what are the financial statement effects

stockholders equity decreases

Daffy

-50,000 increase in total stockholders' equity -50,000 increase in total assets

Shareholders' equity consists of which of the following

-amounts invested by shareholders -amounts earned by the corporation

Canton

-common stock will be overstated -additional paid-in capital will be understated

Dilution

-debit

treasure this

95,000....

consistent with IFRS

a liability

how is treasury stock reported in the financial statements?

as a contra equity account

A higher ROE means ____

-company used financial leverage to its stockholder' advantage -stockholders may enjoy higher returns

Justin

-credit to common stock 10,000 -credit to additional paid-in capital 40,000

an accumulated deficit

-indicates accumulated net losses -means that retained earnings has debit balance

investors earn a return on stock investments by

-receiving dividends -selling the stock for more than its cost

Squid

-replaced its 12% debt with 10% debt -generated...

Allison

20,000

Bank Rupp

6,000

Just in Thyme

90,000

cumulative preferred stock is entitles to receive current dividends plus dividends in ____ before any future dividends can be paid

arrears

dividend payment is due when

cash is decreased dividends payable is decreased

journal entry to record reissuing treasury stock at a price below the cost of the treasury stock includes a

deb to cash deb to addition paid-in capital cred to treasury stock

effect of a large stock dividend ...

decrease

declared and paid in the same year

decrease assets decrease stockholders' equity

number of shares outstanding equals the number of shares

issued minus the number of shares in the treasury

green company

remain the same

which type of dividend does not reduce the assets of the firm or create a liability

stock

journal entry to record a large stock dividend includes a

-deb to retained earnings -cred to common stock

equation of declaring a dividend that will be paid at a later date

-decrease in stockholders' equity -increase in liabilities

what are retained earnings

-decreased by dividends -sometimes called capital earning -all of the company's earnings kept rather than distributed -increased by net income

preferred stockholders usually have preference over common stockholders with respect to which items?

-distribution of assets in liquidation -dividends

EPS

-dividing the stock price by the P/E ratio -dividing net income less preferred dividends by the average common shares outstanding

Ima Rich

-financing activities section of the statement of cash flows increases -stockholders' equity on the balance sheet increases

Refurbish

-treasury stock on the balance sheet will equal 4,000 -stockholders' equity on the balance sheet will be 10,000 higher additional paid-in capital will be increased by 2,000 8,000 cred 2,000 cred to addition...

when treasury stock is purchased, the cost of treasury stock is reported as

a reduction in shareholders' equity

shares of stock that are repurchased are referred to as

treasury stock

issuing 1,000 shares of 5%

increasing total stockholders' equity increasing total assets

Dilution

10,000 decrease and increase

farley

-deb retained earnings 45,000 -cred common stock 5,000 -cred additional...

T-balls

-increase in total assets of 10,000 -decrease in additional paid-in capital of 1,000

stock dividends have the following effects on stockholders' equity

-no change in equity -increase common stock -decrease retained earnings

If a company's EPS falls from $5 to $3 then investors may expect

-reduction in future dividends -reduction in the stock price

which of the following dividends has no effect on total owners' equity?

-stock dividend

limited liability

C corporation

increase in EPS

higher profitability

which account is a stockholders' equity account

additional paid-in capital

preferred stock generally ___ voting rights and _____ preference as to dividends

does not have; has