intermediate-acct-test-bankch15

CHAPTER15STOCKHOLDERS’EQUITYIFRSquestionsareavailableattheendofthischapter.TRUE-FALSE—ConceptualAnswerNo.DescriptionT1.Stateacorporationincorporatesin.F2.Definitionofpreemptiveright.T3.Commonstockasresidualinterest.F4.Earnedcapitaldefinition.T5.Reportingtrueno-parstock.F6.Allocatingproceedsinlumpsumsales.T7.Accountingforstockissuedfornoncashconsideration.F8.Definitionoftreasurystock.F9.Reportingtreasurystockundercostmethod.T10.Sellingtreasurystockbelowcost.F11.Participatingpreferredstock.T12.Callablepreferredstock.T13.Restrictinglegalcapital.F14.Disclosingdividendpolicy.F15.Affectofdividendsontotalstockholders’equity.T16.Propertydividendsdefinition.T17.Accountingforsmallstockdividend.F18.Stocksplitsandlargestockdividends.F19.Computingrateofreturnoncommonstockequity.T20.Computingpayoutratio.MULTIPLECHOICE—ConceptualAnswerNo.Descriptionc21.Natureofstockholders'interest.b22.Pre-emptiveright.a23.Pre-emptiveright.bS24.Definitionoflegalcapital.cS25.Definitionofresidualowner.c26.Natureofstockholders'equity.d27.Sourcesofstockholders'equity.d28.Classificationofstockholders'equity.d29.Allocationmethodsforalumpsumissuance.b30.Capitalstockissuedinpaymentofservices.a31.Costsofissuingcapitalstock.b32.Creationofsecretreserves.aP33.Authorizedshares.dS34.Parvaluestock.bS35.Legalrestrictionsforprofitdistributions.aS36.Acquisitionoftreasuryshares.dP37.Treasurysharesdefinition.c38.Purchaseoftreasurystockatgreaterthanparvalue.TestBankforIntermediateAccounting,FourteenthEdition15-2MULTIPLECHOICE—Conceptual(cont.)AnswerNo.Descriptiona39.Saleoftreasurystock.a40.Reissuedtreasurystockatlessthanacquisitioncost.b41.Reissuedtreasurystockatgreaterthanacquisitioncost.c42.Effectoftreasurystocktransactions.c43.Preferredstock—debtfeatures.b44.Cumulativefeatureofpreferredstock.bP45.Reportingredeemablestock.cS46.Reportingdividendsinarrears.c47.Issuedvs.outstandingcommonstock.b48.Timingofentrytorecorddividends.c49.Sharesentitledtoreceiveacashdividend.c50.Accountingforapropertydividend.a51.Distributionofapropertydividend.a52.Liquidatingdividend.b53.Entrytorecordaliquidatingdividend.b54.Effectsofastockdividend.b55.Effectsofastockdividend.b56.Effectofalargestockdividend.b57.Largestockdividend.a58.Smallstockdividend.a59.Smallstockdividend.b60.Classificationofstockdividendsdistributable.b61.Effectofstocksplitsandstockdividends.c62.Effectofastocksplit.b63.Disclosuresinthebalancesheet.a64.Returnoncommonstockequitycalculation.b65.Payoutratiocalculation.c66.Bookvaluepershare.aP67.Computingbookvaluepershare.c*68.Dividendsandtreasurystock.a*69.Noncumulativepreferredstockanddividendsinarrears.a*70.Disclosureofpreferreddividendsinarrears.PThesequestionsalsoappearintheProblem-SolvingSurvivalGuide.SThesequestionsalsoappearintheStudyGuide.*ThistopicisdealtwithinanAppendixtothechapter.MULTIPLECHOICE—ComputationalAnswerNo.Descriptiona71.Compositionofstockholders'equity.b72.Calculationoftotalpaid-incapital.b73.Allocatingproceedsinlumpsumsales.c74.Allocatingproceedsinlumpsumsales.d75.Computingtotalpaid-incapital.b76.Allocatingproceedsinlumpsumsales.c77.Allocatingproceedsinlumpsumsales.Stockholders’Equity15-3MULTIPLECHOICE—Computational(cont.)AnswerNo.Descriptiond78.Computingpaid-incapitalfromtreasurystocktransactions.d79.Recordingpurchaseoftreasurystock.b80.Reissuetreasurystock—aboveacquisitioncost.c81.Reissuetreasurystock—costmethod.c82.Additionalpaid-incapitalwithtreasurystocktransactions.d83.Calculationofadditionalpaid-incapital.c84.Calculationofadditionalpaid-incapital.a85.Totalstockholders'equitywithtreasurystocktransactions.c86.Totalstockholders'equitywithtreasurystockexchange.c87.Calculatedividendsforcumulativepreferredshares.a88.Calculatedividendsforcommonshares.a89.Calculatedividendsforcommonshares.c90.Reductioninretainedearningsfrompropertydividends.d91.Reductioninretainedearningsfrompropertydividends.b92.Reductioninretainedearningscausedbyapropertydividend.d93.Reductioninretainedearningsfrompropertydividends.d94.Reductioninretainedearningsfrompropertydividends.a95.Decreaseinretainedearningsfromcashandstockdividends.c96.Calculationofalargestockdividend.a97.Calculationofasmallstockdividend.b98.Calculationofasmallstockdividend.b99.Smallstockdividend'seffectonretainedearnings.b100.Balanceofretainedearningsafterasmallstockdividend.a101.Calculateretainedearningsavailablefordividends.a102.Calculatedecreaseinretainedearnings.c103.Calculatethepayoutratio.a104.Calculatebookvaluepershare.d105.Usesamedescrip.as101.d106.Usesamedescrip.as102.c107.Calculaterateofreturnoncommonstockequity.c108.Calculateprice-earningsratio.a109.Calculatedividendspaidtocommonstockholders.b110.Rateofreturnoncommonstockequity.c111.Determinetherateofreturnoncommonstockequity.a112.Determinebookvaluepershare.b113.Computationofpayoutratio.b114.Computationofbookvaluepershare.b*115.Allocationofcashdividendtocommonandpreferredshares.d*116.Cashdividendsforcumulativepreferredshares.b*117.Cashdividendsforcumulativeparticipatingpreferredshares.c*118.Cashdividendallocationwithparticipatingpreferredsh