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York University (12,353)
ADMS 3595 (19)


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York University
Administrative Studies
ADMS 3595
Rebecca Jubis

CHAPTER 15STOCKHOLDERS EQUITYIFRS questions are available at the end of this chapterTRUEFALSEConceptualAnswerNoDescriptionT1State a corporation incorporates inF2Definition of preemptive rightT3Common stock as residual interestF4Earned capital definitionT5Reporting true nopar stockFAllocating proceeds in lump sum sales6T7Accounting for stock issued for noncash considerationF8Definition of treasury stock9FReporting treasury stock under cost methodT10Selling treasury stock below costF11Participating preferred stockT12Callable preferred stockT13Restricting legal capitalF14Disclosing dividend policyF15Affect of dividends on total stockholders equityT16Property dividends definitionT17Accounting for small stock dividendF18Stock splits and large stock dividendsF19 Computing rate of return on common stock equityT20Computing payout ratioMULTIPLE CHOICEConceptualAnswerNoDescriptionc21Nature of stockholders interestb22Preemptive righta23Preemptive rightSb24Definition of legal capitalSc25Definition of residual ownerc26Nature of stockholders equityd27Sources of stockholders equityd28Classification of stockholders equityd29Allocation methods for a lump sum issuanceb30Capital stock issued in payment of servicesa31Costs of issuing capital stockb32Creation of secret reservesPa33Authorized sharesSd34Par value stockSb35Legal restrictions for profit distributionsSa36Acquisition of treasury sharesPd37Treasury shares definitionTest Bank for Intermediate Accounting Thirteenth Edition152c38Purchase of treasury stock at greater than par valueMULTIPLE CHOICEConceptualcontAnswerNoDescriptiona39Sale of treasury stocka40Reissued treasury stock at less than acquisition costb41Reissued treasury stock at greater than acquisition costc42Effect of treasury stock transactionsc43Preferred stockdebt featuresb44Cumulative feature of preferred stockPb45Reporting redeemable stockSc46Reporting dividends in arrearsc47Issued vs outstanding common stockb48Timing of entry to record dividendsc49Shares entitled to receive a cash dividendc50Accounting for a property dividenda51Distribution of a property dividenda52Liquidating dividendb53Entry to record a liquidating dividendb54Effects of a stock dividendb55Effects of a stock dividendb56Effect of a large stock dividendb57Large stock dividenda58Small stock dividenda59Small stock dividendb60Classification of stock dividends distributableb61Effect of stock splits and stock dividendsc62Effect of a stock splitb63Disclosures in the balance sheeta64Return on common stock equity calculationb65Payout ratio calculationc66Book value per sharePa67Computing book value per sharec68Dividends and treasury stocka69Noncumulative preferred stock and dividends in arrearsa70Disclosure of preferred dividends in arrearsP These questions also appear in the ProblemSolving Survival GuideS These questions also appear in the Study GuideThis topic is dealt with in an Appendix to the chapterMULTIPLE CHOICEComputationalAnswerNoDescriptiona71Composition of stockholders equityb72Calculation of total paidin capitalb73Allocating proceeds in lump sum salesc74Allocating proceeds in lump sum salesd75Computing total paidin capitalb76Allocating proceeds in lump sum sales153Stockholders Equityc77Allocating proceeds in lump sum salesMULTIPLE CHOICEComputationalcontAnswerNoDescriptiond78Computing paidin capital from treasury stock transactionsd79Recording purchase of treasury stockb80Reissue treasury stockabove acquisition costc81Reissue treasury stockcost methodc82Additional paidin capital with treasury stock transactionsd83Calculation of additional paidin capitalc84Calculation of additional paidin capitala85Total stockholders equity with treasury stock transactionsc86Total stockholders equity with treasury stock exchangec87Calculate dividends for cumulative preferred sharesa88Calculate dividends for common sharesa89Calculate dividends for common sharesc90Reduction in retained earnings from property dividendsd91Reduction in retained earnings from property dividendsb92Reduction in retained earnings caused by a property dividendd93Reduction in retained earnings from property dividendsd94Reduction in retained earnings from property dividendsa95Decrease in retained earnings from cash and stock dividendsc96Calculation of a large stock dividenda97Calculation of a small stock dividendb98Calculation of a small stock dividendb99Small stock dividends effect on retained earningsb100Balance of retained earnings after a small stock dividenda101Calculate retained earnings available for dividendsa102Calculate decrease in retained earningsc103Calculate the payout ratioa104Calculate book value per shared105Use same descrip as 101d106Use same descrip as 102c107Calculate rate of return on common stock equityc108Calculate priceearnings ratioa109Calculate dividends paid to common stockholdersb110Rate of return on common stock equityc111Determine the rate of return on common stock equitya112Determine book value per shareb113Computation of payout ratiob114Computation of book value per shareb115Allocation of cash dividend to common and preferred sharesd116Cash dividends for cumulative preferred sharesb117Cash dividends for cumulative participating preferred sharesc118Cash dividend allocation with participating preferred sharesb119Cash dividend for cumulative preferred shares
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