Accounting 100

1) The shareholders equity section of the statement of financial position, includes all of the following accounts except for

a) contributed surplus.

b) accumulated OCI.

c) dividends.

d) share Capital.

2) Unrealized gains and losses from the revaluation of certain types of investments to fair value would be reported on

a) the income statement.

b) the statement of financial position.

c) the statement of changes in shareholders equity.

d) the comprehensive income statement.

3) Bailey Inc. issues 100,000 shares at $11 / share in January. Later that year the company is able to repurchase 9,000 of these shares at $10 per share. The effect of this is

a) a decrease to the share capital account of $90,000.

b) an increase to the contributed surplus account of $9,000.

c) a decrease to total shareholders equity of $99,000.

d) an increase in retained earnings by $9,000.

4) Which of the following accounts is not reported on the Statement of Changes in Shareholders Equity?

a) Accumulated Other Comprehensive Income

b) Retained Earnings

c) Goodwill

d) Share Capital

5) The maximum number of shares that a firm can issue is the number of

a) issued shares.

b) authorized shares.

c) outstanding shares.

d) permissible shares.

6) The one class of shares that represent a companys basic voting rights are

a) preferred shares.

b) capital shares.

c) cumulative shares.

d) common shares.

7) The type of preferred share that can be bought back by the company at a specified time and price is a

a) cumulative preferred share.

b) convertible preferred share.

c) redeemable preferred share.

d) non-participating preferred share.

8) Repurchasing shares

a) increases the number of shares outstanding.

b) decreases the number of shares outstanding.

c) has no effect on the number of shares outstanding.

d) splits shares in half.

9) Which of the following happens at the date of declaration of a cash dividend?

a) Dr. Dividends Expense, Cr. Dividends Declared

b) Dr. Dividends Declared, Cr. Cash

c) Dr. Dividends Declared, Cr. Dividends Payable

d) The board of directors approves the dividend but no entry is made in the accounts.