Questions from Financial Accounting

Q: A company purchased 100 shares of its common stock at $49

A company purchased 100 shares of its common stock at $49 per share. It then sells 75 of the treasury shares at $58 per share. The entry to sell the treasury stock includes a a. Credit to Cash for $4,...

Q: Stockholders are eligible for a dividend if they own the stock on

Stockholders are eligible for a dividend if they own the stock on the date of a. Issuance. b. Record. c. Payment. d. Declaration.

Q: Toni’s Foods has outstanding 300 shares of 2% preferred stock,

Toni’s Foods has outstanding 300 shares of 2% preferred stock, $100 par value; and 1,900 shares of common stock, $20 par value. Toni’s declares dividends of $18,200...

Q: A corporation has 50,000 shares of 1% preferred stock

A corporation has 50,000 shares of 1% preferred stock outstanding. Also, there are 50,000 shares of common stock outstanding. Par value for each is $100. If a $450,000 dividend is paid, how much goes...

Q: Assume the same facts as in question 66. What is the

Assume the same facts as in question 66. What is the amount of dividends per share on common stock? a. $4.50 b. $11.00 c. $8.00 d. $9.00 e. None of these

Q: Which of the following is not true about a 10% stock

Which of the following is not true about a 10% stock dividend? a. Total stockholders’ equity remains the same. b. Paid-in Capital increases. c. Par value decreases. d. Retained Earnings decreases. e....

Q: A company declares a 5% stock dividend. The debit to

A company declares a 5% stock dividend. The debit to Retained Earnings is an amount equal to a. The book value of the shares to be issued. b. The excess of the market price over the original issue pri...

Q: Which of the following statements is not true about a 3-

Which of the following statements is not true about a 3-for-1 stock split? a. Total stockholders’ equity increases. b. Par value is reduced to one-third of what it was before the split. c. Retained Ea...

Q: Buffalo Bell’s days’ sales in average receivables during 2012 was a

Buffalo Bell’s days’ sales in average receivables during 2012 was a. 137.9 days. b. 20.1 days. c. 35 days. d. 25 days.

Q: Blue Company’s net income and net sales are $38,000

Blue Company’s net income and net sales are $38,000 and $900,000, respectively, and average total assets are $250,000. What is Blue’s return on assets? a. 15.2% b. 27.8% c. 17.2% d. 4.2%