kieso15etestbankch15.docx

1、kieso15etestbankch15CHAPTER 15STOCKHOLDERS EQUITYIFRS questions are available at the end of this chapter.TRUE-FALSeConceptualAnswer No. Description T 1. State a corporation incorporates in. F 2. Definition of preemptive right. T 3. Common stock as residual interest. F 4. Earned capital definition. T

2、 5. Reporting true no-par stock. F 6. Allocating proceeds in lump sum sales. T 7. Accounting for stock issued for noncash consideration. F 8. Definition of treasury stock. F 9. Reporting treasury stock under cost method. T 10. Selling treasury stock below cost. F 11. Participating preferred stock. T

3、 12. Callable preferred stock. T 13. Restricting legal capital. F 14. Disclosing dividend policy. F 15. Affect of dividends on total stockholders equity. T 16. Property dividends definition. T 17. Accounting for small stock dividend. F 18. Stock splits and large stock dividends. F 19. Computing rate

4、 of return on common stock equity. T 20. Computing payout ratio.Multiple ChoiceConceptualAnswer No. Description c 21. Nature of stockholders interest. b 22. Pre-emptive right. d 23. Pre-emptive right. b S24. Definition of legal capital. c S25. Definition of residual owner. c 26. Nature of stockholde

5、rs equity. d 27. Sources of stockholders equity. d 28. Classification of stockholders equity. d 29. Allocation methods for a lump sum issuance. b 30. Capital stock issued in payment of services. a 31. Costs of issuing capital stock. b 32. Creation of secret reserves. a P33. Authorized shares. d S34.

6、 Par value stock. b S35. Legal restrictions for profit distributions. a S36. Acquisition of treasury shares. d P37. Treasury shares definition. c 38. Purchase of treasury stock at greater than par value.Multiple ChoiceConceptual (cont.)Answer No. Description a 39. Sale of treasury stock. a 40. Reiss

7、ued treasury stock at less than acquisition cost. b 41. Reissued treasury stock at greater than acquisition cost. c 42. Effect of treasury stock transactions. c 43. Preferred stockdebt features. b 44. Cumulative feature of preferred stock. b P45. Reporting redeemable stock. c S46. Reporting dividend

8、s in arrears. c 47. Issued vs. outstanding common stock. b 48. Timing of entry to record dividends. c 49. Shares entitled to receive a cash dividend. c 50. Accounting for a property dividend. a 51. Distribution of a property dividend. a 52. Liquidating dividend. b 53. Entry to record a liquidating d

9、ividend. b 54. Effects of a stock dividend. b 55. Effects of a stock dividend. b 56. Effect of a large stock dividend. b 57. Large stock dividend. a 58. Small stock dividend. a 59. Small stock dividend. b 60. Classification of stock dividends distributable. b 61. Effect of stock splits and stock div

10、idends. c 62. Effect of a stock split. b 63. Disclosures in the balance sheet. a 64. Return on common stock equity calculation. b 65. Payout ratio calculation. c 66. Book value per share. a P67. Computing book value per share. c *68. Dividends and treasury stock. a *69. Noncumulative preferred stock

11、 and dividends in arrears. a *70. Disclosure of preferred dividends in arrears.P These questions also appear in the Problem-Solving Survival Guide.S These questions also appear in the Study Guide.*This topic is dealt with in an Appendix to the chapter.Multiple ChoiceComputationalAnswer No. Descripti

12、on a 71. Composition of stockholders equity. b 72. Calculation of total paid-in capital. b 73. Allocating proceeds in lump sum sales. c 74. Allocating proceeds in lump sum sales. d 75. Computing total paid-in capital. b 76. Allocating proceeds in lump sum sales. c 77. Allocating proceeds in lump sum

13、 sales.Multiple ChoiceComputational (cont.)Answer No. Description d 78. Computing paid-in capital from treasury stock transactions. d 79. Recording purchase of treasury stock. b 80. Reissue treasury stockabove acquisition cost. c 81. Reissue treasury stockcost method. c 82. Additional paid-in capita

14、l with treasury stock transactions. d 83. Calculation of additional paid-in capital. c 84. Calculation of additional paid-in capital. a 85. Total stockholders equity with treasury stock transactions. c 86. Total stockholders equity with treasury stock exchange. c 87. Calculate dividends for cumulati

15、ve preferred shares. a 88. Calculate dividends for common shares. a 89. Calculate dividends for common shares. c 90. Reduction in retained earnings from property dividends. d 91. Reduction in retained earnings from property dividends. b 92. Reduction in retained earnings caused by a property dividen

16、d. d 93. Reduction in retained earnings from property dividends. d 94. Reduction in retained earnings from property dividends. a 95. Decrease in retained earnings from cash and stock dividends. c 96. Calculation of a large stock dividend. a 97. Calculation of a small stock dividend. b 98. Calculatio

17、n of a small stock dividend. b 99. Small stock dividends effect on retained earnings. b 100. Balance of retained earnings after a small stock dividend. a 101. Calculate retained earnings available for dividends. a 102. Calculate decrease in retained earnings. c 103. Calculate the payout ratio. a 104

18、. Calculate book value per share. d 105. Calculate retained earnings available for dividends. d 106. Calculate decrease in retained earnings. c 107. Calculate rate of return on common stock equity. c 108. Calculate price-earnings ratio. a 109. Calculate dividends paid to common stockholders. b 110.

19、Rate of return on common stock equity. c 111. Determine the rate of return on common stock equity. a 112. Determine book value per share. b 113. Computation of payout ratio. b 114. Computation of book value per share. b *115. Allocation of cash dividend to common and preferred shares. d *116. Cash d

20、ividends for cumulative preferred shares. b *117. Cash dividends for cumulative participating preferred shares. c *118. Cash dividend allocation with participating preferred shares. b *119. Cash dividend for cumulative preferred shares.Multiple ChoiceCPA AdaptedAnswer No. Description d 120. Capital

21、stock issued in payment of services. b 121. Proceeds from preferred stock in lump sum issue. c 122. Determine paid-in capital from treasury stock. b 123. Reissue treasury stockcost method. c 124. Effect of the reissuance of treasury stock. d 125. Entry to record property dividends declared. b 126. E

22、ffect of a liquidating dividend. d 127. Effect of a stock dividend. d 128. Stock dividend when market price exceeds par value. a 129. Balance of retained earnings following stock dividend. c *130. Allocation of cash dividend to common and preferred shares.Exercises Item Description E15-131 Lump sum

23、issuance of stock. E15-132 Treasury stock. E15-133 Treasury stock. E15-134 Treasury stock. E15-135 Treasury stock. E15-136 Stockholders equity. E15-137 Stock dividends. E15-138 Stock dividends and stock splits. E15-139 Computation of selected ratios. *E15-140 Dividends on preferred stock. *E15-141 D

24、ividends on preferred stock.PROBLEMS Item Description P15-142 Equity transactions. P15-143 Treasury stock transactions. P15-144 Stock dividends. P15-145 Equity transactions. *P15-146 Dividends on preferred and common stock.CHAPTER LEARNING OBJECTIVES 1. Discuss the characteristics of the corporate f

25、orm of organization. 2. Identify the key components of stockholders equity. 3. Explain the accounting procedures for issuing shares of stock. 4. Describe the accounting for treasury stock. 5. Explain the accounting for and reporting of preferred stock. 6. Describe the policies used in distributing d

26、ividends. 7. Identify the various forms of dividend distributions. 8. Explain the accounting for small and large stock dividends, and for stock splits. 9. Indicate how to present and analyze stockholders equity. *10. Explain the different types of preferred stock dividends and their effect on book v

27、alue per share.*11. Compare the procedures for accounting for stockholders equity under GAAP and IFRS.SUMMARY OF LEARNING OBJECTIVES BY QUESTIONSItemTypeItemTypeItemTypeItemTypeItemTypeItemTypeItemTypeLearning Objective 11.TF2.TF3.TF21.MC22.MC23.MCS24.MCLearning Objective 24.TFS25.MC26.MC27.MC28.MCL

28、earning Objective 35.TF29.MC32.MCS35.MC73.MC76.MC121.MC6.TF30.MCP33.MC71.MC74.MC77.MC131.E7.TF31.MCS34.MC72.MC75.MC120.MC142.PLearning Objective 48.TFP37.MC41.MC80.MC84.MC123.MC134.E9.TF38.MC42.MC81.MC85.MC124.MC135.E10.TF39.MC78.MC82.MC86.MC132.E - CT143.PS36.MC40.MC79.MC83.MC122.MC133.ELearning Ob

29、jective 511.TF43.MCP45.MC87.MC89.MC12.TF44.MCS46.MC88.MCLearning Objective 613.TF14.TFLearning Objective 715.TF48.MC51.MC90.MC93.MC126.MC145.P16.TF49.MC52.MC91.MC94.MC136.E47.MC50.MC53.MC92.MC125.MC144.P- CTLearning Objective 817.TF57.MC62.MC99.MC104.MC127.MC144.P- CT18.TF58.MC95.MC100.MC105.MC128.MC145.P54.MC59.MC96.MC101.MC106.MC129.MC55.MC60.MC97.MC102.MC107.MC137.E56.MC61.MC98.MC103.MC108.MC138.ELearning Objective 919.TF63.MC65.MCP67.MC110.MC112.MC114.MC20.TF64.MC66.MC109.MC111.MC113.MC139.ELearning Objective *1068.MC70.MC