Questions from Intermediate Accounting


Q: List possible sources of additional paid-in capital.

List possible sources of additional paid-in capital.

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Q: Satchel Inc. purchases 10,000 shares of its own previously

Satchel Inc. purchases 10,000 shares of its own previously issued $10 par common stock for $290,000. Assuming the shares are held in the treasury with intent to reissue, what effect does this transact...

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Q: Indicate how each of the following accounts should be classified in the

Indicate how each of the following accounts should be classified in the stockholders’ equity section. (a) Common Stock (b) Retained Earnings (c) Paid-in Capital in Excess of Par—Common Stock (d) Treas...

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Q: What factors influence the dividend policy of a company?

What factors influence the dividend policy of a company?

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Q: Distinguish between the following interest rates for bonds payable: (

Distinguish between the following interest rates for bonds payable: (a) Yield rate. (b) Nominal rate. (c) Stated rate. (d) Market rate. (e) Effective rate.

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Q: Dividends are sometimes said to have been paid “out of retained

Dividends are sometimes said to have been paid “out of retained earnings.” What is the error, if any, in that statement?

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Q: Stock splits and stock dividends may be used by a corporation to

Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding. (a) What is meant by a stock split effected in the form of a dividend? (b) From a...

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Q: The following comment appeared in the notes of Colorado Corporation’s annual report

The following comment appeared in the notes of Colorado Corporation’s annual report: “Such distributions, representing proceeds from the sale of Sarazan, Inc., were paid in the form of partial liquida...

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Q: This comment appeared in the annual report of MacCloud Inc.: “

This comment appeared in the annual report of MacCloud Inc.: “The Company could pay cash or property dividends on the Class A common stock without paying cash or property dividends on the Class B comm...

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Q: For what reasons might a company restrict a portion of its retained

For what reasons might a company restrict a portion of its retained earnings?

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