Achievement Test 7
Achievement Test 7: Chapters 13 and 14
|
Part |
I |
II |
III |
IV |
V |
Total |
|
Points |
34 |
24 |
15 |
12 |
15 |
100 |
|
Score |
PART I — MULTIPLE CHOICE (34 points)
Instructions: Designate the best answer for each of the following questions.
____ 1.Restrictions of retained earnings may result from each of the following except:
a.contractual restrictions.
b.legal restrictions.
c.voluntary restrictions.
d.prior period adjustment restrictions.
____ 2.Jamie, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 30,000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2016. The board of directors declares and pays a $150,000 dividend in 2017. What is the amount of dividends received by the common stockholders in 2017?
a.$0.
b.$60,000.
c.$90,000.
d.$150,000.
____ 3.Tina Corporation issued 4,000 shares of $10 par value common stock in exchange for a truck. The truck had a fair value of $65,000. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par – CS for:
a.$20,000.
b.$25,000.
c.$40,000.
d.$65,000.
____ 4.Trinity Manufacturing declared a 10% stock dividend when it had 150,000 shares of $3 par value common stock outstanding. The market price per common share was $11 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to:
a.Retained Earnings for $45,000.
b.Common Stock for $45,000.
c.Paid-in Capital in Excess of Par – CS for $120,000.
d.Common Stock Dividends Distributable for $180,000.
____ 5.Arthur Company paid $39,000 to buy 3,000 shares of its $5 par value common stock for the treasury. The stock was originally sold for $27,000. The entry to record the purchase includes a:
a.debit to Treasury Stock for $15,000.
b.credit to Treasury Stock for $27,000.
c.debit to Treasury Stock for $39,000.
d.credit to Common Stock for $27,000.
____ 6.The officer who is responsible for maintaining the company’s cash position is the:
a.vice-president of finance.
b.controller.
c.president.
d.treasurer.
____ 7.Hallery Corporation issued 600 shares of 10% $15 par convertible preferred stock for $12,000. The entry to record the declaration of the annual cash dividend is:
a.debit Cash Dividends $900 and credit Cash $900.
b.debit Cash Dividends $1,200 and credit Cash $1,200.
c.debit Cash Dividends $1,200 and credit Dividends Payable $1,200.
d.debit Cash Dividends $900 and credit Dividends Payable $900.
____ 8.The purchase of treasury stock:
a.decreases total assets and decreases total stockholders’ equity.
b.increases total assets and decreases total stockholders’ equity.
c.increases total assets and increases total stockholders’ equity.
d.decreases total assets and increases total stockholders’ equity.
____ 9.The resale of treasury stock for an amount greater than its cost:
a.increases net income.
b.increases total assets and increases total stockholders’ equity.
c.decreases total assets and increases total stockholders’ equity.
d.increases total assets and decreases total stockholders’ equity.
____ 10.Each of the following decreases retained earnings except:
a.cash dividends.
b.large stock dividends.
c.small stock dividends.
d.stock splits.
____ 11.Treasury stock is reported in the balance sheet as a deduction from:
a.capital stock.
b.additional paid-in capital.
c.retained earnings.
d.paid-in capital and retained earnings.
____ 12.Watkins, Inc. paid $48,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a:
a.credit to Common Stock for $6,000.
b.credit to Paid-in Capital from Treasury Stock for $6,000.
c.debit to Paid-in Capital from Treasury Stock for $45,000.
d.debit to Retained Earnings for $48,000.
____ 13.Restrictions of retained earnings:
a.do not change total stockholders’ equity.
b.are reported on the balance sheet as liabilities.
c.provide insurance coverage for contingencies.
d.are reported as expenses on the income statement.
____ 14.Ownership of common stock ordinarily carries the right to:
a.declare dividends.
b.vote on corporate actions that require stockholder approval.
c.enter into contracts for the corporation.
d.establish a drawing account.
____ 15.A corporation is formed when:
a.it borrows money.
b.it receives a charter from its president.
c.it is granted by-laws by the federal government.
d.None of the above.
____ 16.Which of the following may either increase or decrease retained earnings?
a.Stock dividends.
b.Disposals of treasury stock.
c.Prior period adjustments.
d.Net income.
____ 17.Common Stock Dividends Distributable is reported in the balance sheet:
a.as an addition to retained earnings.
b.as an asset.
c.as a liability.
d.in paid-in capital as an addition to common stock issued.
GraduateWriterHelp.com is an online academic writing platform that provides extensive assistance to graduate school students as they work through their research projects, papers and dissertations. GraduateWriterHelp.com gives students access to experienced professionals who can provide the help they need in a timely and efficient manner. The service offers a wide range of services, including editing, proofreading, formatting, researching and more that can give students the confidence they need to write the perfect paper or dissertation for their chosen subject matter.
Services Offered by GraduateWriterHelp.com
GraduateWriterHelp.com offers a wealth of different services designed to make research projects easier for graduate school students. These include editing, proofreading, formatting and researching services, all tailored specifically for graduate-level studies such as PhDs or Master’s degrees in any field from business administration to engineering or even psychology – all with the aim of helping busy students find success in their academics without having to sacrifice other important commitments like family time or work hours towards earning a living wage outside of college hours.
The Benefits of Using GraduateWriterHelp.com
Using GraduateWriterHelp.com gives you access to experts from all over the world who are highly qualified and experienced in helping graduate-level students to complete successful projects in various fields quickly and efficiently – something that would otherwise be difficult, if not impossible, given tight deadlines associated with most Ph.D./Master’s degree programs today. Moreover, using this platform makes it easier for students to keep up with multiple research tasks simultaneously since there are so many different experts available on tap at any one time – no longer will you have to put off studying one topic while focusing on another because of lack of resources! Additionally, having access to professional editors, proofreaders, but also formatters means that quality control standards aren’t sacrificed when finishing major pieces – since these individuals understand what makes up good academic writing better than anyone else and can offer guidance on how best one should go about making improvements along those lines. Finally, there is also an added cost-saving benefit associated with utilizing Graduate Writer Help compared to hiring an independent contractor (which could potentially run into thousands depending on length/complexity).
This service allows users only pay for what students need, which tends to be much lower overall because customers pay per hour rather than project basis, thus resulting to greater financial flexibility, especially for those just starting out postgraduate studies looking to conserve some pennies here there whenever possible!
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more