ACC/206 Strayer Accounting Principles II Week 6 Quiz

Name: ACC/206 Strayer Accounting Principles II Week 6 Quiz
Brand: University of Botswana-Gaborone
Price: 2 USD
Availability: InStock
Author: Seller Steve

Week 6 quiz solution for Accounting Principles II at Strayer University.

Seller Steve

Contributor

4.8

about 1 month ago

Preview (4 of 10)

Strayer ACC/206 Accounting Principles II Week 6 Quiz
TRUE-FALSE STATEMENTS
1. Dividends may be declared and paid in cash or stock.
True
False
2. Cash dividends are not a liability of the corporation until they are declared by the board of
directors.
True
False
3. The amount of a cash dividend liability is recorded on the date of record because it is on that
date that the persons or entities who will receive the dividend are identified.
True
False
4. A 10% stock dividend will increase the number of shares outstanding but the book value per
share will decrease.
True
False
5. A 3 for 1 common stock split will increase total stockholders' equity but reduce the par or
stated value per share of common stock.
True
False
6. Retained earnings represents the amount of cash available for dividends.
True
False
7. Net income of a corporation should be closed to retained earnings and net losses should be
closed to paid-in capital accounts.
True
False
8. A debit balance in the Retained Earnings account is identified as a deficit.
True
False
9. A correction in income of a prior period involves either a debit or credit to the Retained
Earnings account.
True
False
10. Prior period adjustments to income are reported in the current year's income statement.
True
False
11. Retained earnings that are restricted are unavailable for dividends.
True
False
12. Restricted retained earnings are available for preferred stock dividends but unavailable for
common stock dividends.
True
False

13. A retained earnings statement shows the same information as a corporation income
statement.
True
False
14. A detailed stockholders' equity section in the balance sheet will list the names of individuals
who are eligible to receive dividends on the date of record.
True
False
15. Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of
the stockholders' equity section of the balance sheet.
True
False
16. Return on common stockholders’ equity is computed by dividing net income by ending
stockholders’ equity.
True
False
17. Many companies prepare a stockholders’ equity statement instead of presenting a detailed
stockholders’ equity section in the balance sheet.
True
False
18. A major difference among corporations, proprietorships, and partnerships is that a
corporation's income statement reports income tax expense.
True
False
19. A corporation incurs income tax expense only if it pays dividends to stockholders.
True
False
20. Income tax expense usually appears as a separate section on a corporation income statement.
True
False
21. Earnings per share is calculated by dividing net income by the weighted average number of
shares of preferred stock and common stock outstanding.
True
False
22. Preferred dividends paid are added back to net income in calculating earnings per share for
common stockholders.
True
False
23. Earnings per share indicates the net income earned by each share of outstanding common
stock.
True
False
24. Earnings per share is reported for both preferred and common stock.
True
False

25. Most companies are required to report earnings per share on the face of the income
statement.
True
False
Additional True-False Questions
26. A dividend based on paid-in capital is termed a liquidating dividend.
True
False
27. Common Stock Dividends Distributable is reported as additional paid-in capital in the
stockholders' equity section.
True
False
28. A prior period adjustment is reported as an adjustment of the beginning balance of Retained
Earnings.
True
False
29. Income tax expense and the related liability for income taxes payable are recorded when
taxes are paid.
True
False
30. Earnings per share is reported only for common stock.
True
False
MULTIPLECHOICE QUESTIONS
31. Each of the following decreases retained earnings except a
a. cash dividend.
b. liquidating dividend.
c. stock dividend.
d. All of these decrease retained earnings.
32. Each of the following decreases total stockholders' equity except a
a. cash dividend.
b. liquidating dividend.
c. stock dividend.
d. All of these decrease total stockholders' equity.
33. Which one of the following is not necessary in order for a corporation to pay a cash
dividend?
a. Adequate cash
b. Approval of stockholders
c. Declaration of dividends by the board of directors
d. Retained earnings
34. If a corporation declares a dividend based upon paid-in capital, it is known as a
a. scrip dividend.
b. property dividend. c. paid dividend.
d. liquidating dividend.
35. The date on which a cash dividend becomes a binding legal obligation is on the
a. declaration date.

Preview Mode

100%

Study Now!

XY-Copilot AI

Unlimited Access

Secure Payment

Instant Access

24/7 Support

Document Chat

Document Details

University

University of Botswana-Gaborone

Subject

Accounting

ACC/206 Strayer Accounting Principles II Week 6 Quiz

Study Now!

Document Details

Related Documents

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Sarbanes Oxley Act, GAAP and IFRS

Team A Week 5 Problems

Accounting Audit Final Exam MCQs 2015

IFRS or US GAAP Which is the Best Reporting Standard

Government wide statements and Fund statements

Analysis of Relevant Costs in Managerial Decision-Making

Midterm Exam on Governmental and Not-for-Profit Accounting

Company

Explore

Study Tools