Goals Achievement: Chapter Fourteen
The feature of limited liability means that stockholders can never lose more than the par value of the stock in which they have invested.
Which of the following features would be associated with common stock?
Which of the following types of stock is accounted for similar to par-value stock?
Total paid-in capital equals the par value of capital stock plus:
For a cash dividend, stockholders' equity would be reduced on the:
In the event dividends are paid to only one class of stock, which class is ordinarily paid?
Dividends that have not been paid on cumulative preferred stock are said to be:
If a corporation has dividends in arrears on preferred stock for two years ($5,000 per year), and declares $20,000 of dividends during the current (third) year, how much will be paid to the common shareholders?
Treasury stock is stock of one corporation that is owned by another corporation.
Treasury stock should be reported as:
The reissuance of treasury stock would never result in a credit to:
The accounting for a stock split requires the recording of a journal entry.
A small stock dividend (one that is less than 20-25%) should be accounted for based on:
Stock dividends are reported on the statement of retained earnings.
In preparing the stockholders' equity section (and related footnotes), how much detail is required?
In lieu of the Statement of Retained Earnings, many companies will prepare an expanded Statement of Stockholders' Equity.