ACC 102 Lecture Notes - Lecture 12: Dividend Yield, Treasury Stock, Retained Earnings
26 May 2018
School
Department
Course
Professor
1
Bob Ryan DePaul University 2015/2016
Accounting 102
Financial & Managerial Accounting
Chapter 12 – Class Questions
1. Dividend yield equals:
a. Market price per share divided by dividends per share
b. Net income divided by dividends per share
c. Dividends per share divided by net income
d. Dividends per share divided by market price per share
2. Which of the following phrases is not descriptive of the corporate form of
business?
a. Professional management
b. Continuous existence
c. Double taxation
d. Unlimited liability
3. Par value:
a. Is established for a share of stock after it is issued
b. Is the legal capital established for a share of stock
c. Represents what a share of stock is worth
d. Represents the original selling price for a share of stock
4. A good measure of confidence in a corporation’s future is:
a. Par value
b. Price/earnings ratio
c. Dividends yield
d. Return on equity
5. Which of the following is the appropriate entry to record the declaration of
cash dividends?
a. Debit: Dividends Payable Credit: Cash
b. Debit: Paid in Capital Credit: Dividends Payable
c. Debit: Dividends Credit: Dividends Payable
d. Debit: Retained Earnings Credit: Cash
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6. The board of directors of Irondale Corporation declared a cash dividend of
$2.50 per share on 57,000 shares of common stock on June 14, 2010. The
dividend is to be paid on July 15, 2010, to shareholders of record on July 1,
2010. The proper entry to be recorded on July 15, 2010, will be:
a. Debit: Cash Credit: Dividends payable
b. Debit: Dividends payable Credit: Cash
c. Debit: Cash Credit: Dividends
d. Debit: Dividends Credit: Cash
7. The number of shares of issued stock equals:
a. Unissued shares minus authorized shares
b. Outstanding shares plus treasury stock
c. Subscribed shares plus outstanding shares
d. Authorized shares minus treasury shares
8. All of the following normally are found in a corporation’s stockholders’
equity section except :
a. Treasury stock
b. Preferred stock
c. Retained earnings
d. Dividends payable
9. Holders of preferred stock normally do not have:
a. Preference as to dividends
b. Preference as to assets in liquidations
c. Full voting rights
d. Ownership interest in the corporation
10. Outstanding shares of stock are:
a. Authorized shares that have not yet been issued.
b. Also called treasury stock
c. Shares of stock owned by unknown individuals
d. Issued shares that are still in circulation
11. Legal capital is a descriptive phrase for:
a. Stockholders’ equity
b. Residual equity
c. Market value
d. Par value
Document Summary
1: the board of directors of irondale corporation declared a cash dividend of. . 50 per share on 57,000 shares of common stock on june 14, 2010. The dividend is to be paid on july 15, 2010, to shareholders of record on july 1: the proper entry to be recorded on july 15, 2010, will be, debit, debit, debit, debit: Common stock, par value, 100,000 shares outstanding. Preferred stock, 8%, cumulative, par value, 10,000 shares outstanding. Dividends were in arrears for 2008 and 2009. On december 31, 2010, total cash dividends of ,000 were declared. 3: beckham corporation has 3,000 shares of par value, 7% cumulative preferred stock, and 10,000 shares of par value common stock outstanding during its first five years of operations. When langston corporation was formed on january 1, 2010, the corporate charter provided for 100,000 shares of par value common stock.
