Question 1

The effect of an event or transaction that is infrequent in occurrence and highly unusual in nature is shown as a(n) ____________________ item on the income statement.

Accepted Answer

The answer of The effect of an event or transaction...

Question 2

A corporation reported a net income of $200,000 for its fiscal year and declared and paid cash dividends of $90,000. A stock dividend recorded at $50,000 was also distributed during the year. If the ending balance of the Retained Earnings account was $300,000, calculate the beginning balance in the Retained Earnings account.

Accepted Answer

The answer of A corporation reported a net income of...

Question 3

The entry to record the distribution of a stock dividend includes a credit to Common Stock Dividend Distribution.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is not correct?

Accepted Answer

A)   Corporations must estimate and prepay their income taxes through quarterly tax deposits.
B)   At the end of the year, when the worksheet is prepared, the Income Tax Expense account is adjusted only if the corporation owes additional taxes.
C)   Income Tax Expense may be shown as an operating expense on a corporation's income statement.
D)   On a corporate income statement, the tax effects of each extraordinary item is offset against each gain or loss to show the effect 'net of taxes.'E) All of the above
F) B) and C)

Question 5

The worksheet for a corporation and a sole proprietorship are almost identical. The major difference is the

Accepted Answer

A)   adjustment for accrued revenues.
B)   adjustment for accrued expenses.
C)   income tax adjustment.
D)   adjustment for depreciation.E) C) and D)
F) A) and B)

Question 6

The Topeka Corporation has 40,000 shares of $3 par value common stock outstanding. On July 1, the corporation declared a stock dividend payable July 31, 2014, to common stockholders of record on July 20, 2014, at the rate of one new share of common stock for each ten shares held. The estimated market value of the common stock is $36 per share. Record the transactions on page 15 of a general journal. Omit descriptions.

Accepted Answer

The answer of The Topeka Corporation has 40,000 shares of...

Question 7

When the amount of future taxes that will be paid as a result of the MACRS depreciation deduction taken in this and prior years, an adjustment for the future taxes is made with a debit to

Accepted Answer

A)   Tax Expense and a credit to Deferred Income Tax Liability.
B)   Deferred Income Tax Liability and a credit to Tax Expense.
C)   Tax Expense and a credit to Deferred Income Tax Asset.
D)   Deferred Income Tax Asset and a credit to Tax Expense.E) All of the above
F) C) and D)

Question 8

Both cash dividends and stock dividends decrease the total stockholders' equity.

Accepted Answer

A) True 
 B)False  False

Question 9

A corporation reported a net income of $200,000 for its fiscal year and declared and paid cash dividends of $80,000. A stock dividend recorded at $40,000 was also distributed during the year. If the beginning balance of the Retained Earnings account was $60,000, calculate the ending balance in the Retained Earnings account.

Accepted Answer

The answer of A corporation reported a net income of...

Question 10

Selected transactions of the Streng Corporation during 2013 and 2014 are given below. Record the transactions on page 6 of a general journal. Omit descriptions.

Accepted Answer

The answer of Selected transactions of the Streng Corporation during...

Question 11

When treasury stock is purchased, the Treasury Stock account is debited for the entire amount paid for the stock.

Accepted Answer

A) True 
 B)False

Question 12

The Treasury Stock account is shown on the balance sheet as

Accepted Answer

A)   an asset.
B)   an addition to the Common Stock and Preferred Stock accounts in the Stockholders' Equity section.
C)   a deduction from the Retained Earnings in the Stockholders' Equity section.
D)   a deduction from the sum of all other items in the Stockholders' Equity section.E) A) and C)
F) All of the above

Question 13

When the cumulative taxable income is higher than that reported on the financial statements, this gives rise to

Accepted Answer

A)   a deferred income tax liability.
B)   a deferred income tax asset.
C)   Either of the above
D)   Neither of the above.E) A) and B)
F) A) and D)

Question 14

Treasury stock is

Accepted Answer

A)   stock previously paid for in full by a stockholder, then repurchased by the issuing corporation.
B)   donated by stockholders.
C)   always preferred stock.
D)   categorized under Paid-in Capital on the balance sheet and added to preferred and common stock.E) A) and B)
F) B) and C)

Question 15

Which of the following statements is correct?

Accepted Answer

A)   The Common Stock Dividends Distributable account is shown as a current liability on the balance sheet.
B)   When a stock dividend is distributed, no assets leave or enter the corporation.
C)   When a stock dividend is declared, the total amount debited to Retained Earnings is the par value, or stated value, of the shares to be issued.
D)   When a stock dividend is declared, the total amount of the dividend is debited to the Common Stock account.E) B) and C)
F) A) and D)

Question 16

If a corporation receives a gift of land valued at $10,000 from a city, the accountant will record a debit to Land and a credit to ___________________.

Accepted Answer

The answer of If a corporation receives a gift of...

Question 17

The Dividends Payable accounts appear on the balance sheet as ____________________ liabilities.

Accepted Answer

current

Question 18

Although the balance of the Retained Earnings account is decreased, a(n) ____________________ dividend will not result in a decrease in total stockholders' equity.

Accepted Answer

stock

Question 19

The effect of issuing a stock dividend is to convert a portion of the corporation's ____________________ to permanent capital.

Accepted Answer

The answer of The effect of issuing a stock dividend...

Question 20

The Retained Earnings Appropriated-Treasury Stock account is shown in the ____________________ section of the balance sheet.

Accepted Answer

Stockholde...

Exam 21: Corporate Earnings and Capital Transactions

The effect of an event or transaction that is infrequent in occurrence and highly unusual in nature is shown as a(n) ____________________ item on the income statement.

Correct Answer
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Correct Answer
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The entry to record the distribution of a stock dividend includes a credit to Common Stock Dividend Distribution.

Correct Answer
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Which of the following statements is not correct?

Correct Answer
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The worksheet for a corporation and a sole proprietorship are almost identical. The major difference is the

Correct Answer
verified

Correct Answer
verified

When the amount of future taxes that will be paid as a result of the MACRS depreciation deduction taken in this and prior years, an adjustment for the future taxes is made with a debit to

Correct Answer
verified

Both cash dividends and stock dividends decrease the total stockholders' equity.

Correct Answer
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False

Correct Answer
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Selected transactions of the Streng Corporation during 2013 and 2014 are given below. Record the transactions on page 6 of a general journal. Omit descriptions.

Correct Answer
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When treasury stock is purchased, the Treasury Stock account is debited for the entire amount paid for the stock.

Correct Answer
verified

The Treasury Stock account is shown on the balance sheet as

Correct Answer
verified

When the cumulative taxable income is higher than that reported on the financial statements, this gives rise to

Correct Answer
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Treasury stock is

Correct Answer
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Which of the following statements is correct?

Correct Answer
verified

If a corporation receives a gift of land valued at $10,000 from a city, the accountant will record a debit to Land and a credit to ___________________.

Correct Answer
verified

The Dividends Payable accounts appear on the balance sheet as ____________________ liabilities.

Correct Answer
verified
current

Although the balance of the Retained Earnings account is decreased, a(n) ____________________ dividend will not result in a decrease in total stockholders' equity.

Correct Answer
verified
stock

The effect of issuing a stock dividend is to convert a portion of the corporation's ____________________ to permanent capital.

Correct Answer
verified

The Retained Earnings Appropriated-Treasury Stock account is shown in the ____________________ section of the balance sheet.

Correct Answer
verified
Stockholde...
View Answer

Exam 21: Corporate Earnings and Capital Transactions

The effect of an event or transaction that is infrequent in occurrence and highly unusual in nature is shown as a(n) ____________________ item on the income statement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The entry to record the distribution of a stock dividend includes a credit to Common Stock Dividend Distribution.

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

The worksheet for a corporation and a sole proprietorship are almost identical. The major difference is the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the amount of future taxes that will be paid as a result of the MACRS depreciation deduction taken in this and prior years, an adjustment for the future taxes is made with a debit to

Correct AnswerverifiedShow Answer

Both cash dividends and stock dividends decrease the total stockholders' equity.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

Selected transactions of the Streng Corporation during 2013 and 2014 are given below. Record the transactions on page 6 of a general journal. Omit descriptions.

Correct AnswerverifiedShow Answer

When treasury stock is purchased, the Treasury Stock account is debited for the entire amount paid for the stock.

Correct AnswerverifiedShow Answer

The Treasury Stock account is shown on the balance sheet as

Correct AnswerverifiedShow Answer

When the cumulative taxable income is higher than that reported on the financial statements, this gives rise to

Correct AnswerverifiedShow Answer

Treasury stock is

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If a corporation receives a gift of land valued at $10,000 from a city, the accountant will record a debit to Land and a credit to ___________________.

Correct AnswerverifiedShow Answer

The Dividends Payable accounts appear on the balance sheet as ____________________ liabilities.

Correct Answerverifiedcurrent

Although the balance of the Retained Earnings account is decreased, a(n) ____________________ dividend will not result in a decrease in total stockholders' equity.

Correct Answerverifiedstock

The effect of issuing a stock dividend is to convert a portion of the corporation's ____________________ to permanent capital.

Correct AnswerverifiedShow Answer

The Retained Earnings Appropriated-Treasury Stock account is shown in the ____________________ section of the balance sheet.

Correct AnswerverifiedStockholde...View AnswerShow Answer

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False

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current

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stock

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Stockholde...
View Answer