Multiple Choice

5. Which of the following is not in the Statement of Shareholders Equity?

A) Common Stock.

B) Treasury Stock.

C) Retained Earnings.

D) Interest Expense.

6. Which of the following represents the number of shares currently owned by investors?

A) Authorized shares.

B) Issued shares.

C) Outstanding shares.

D) Treasury shares.

7. Rye Company has provided the following information:

Weighted average number of outstanding common shares, 200,000

Net income, $500,000

Number of authorized common shares, 400,000

Number of treasury shares, 25,000

If Rye has issued 225,000 shares, what is Rye's earnings per share (EPS)?

A) $2.50

B) $1.25

C) $2.00

D) $1.33

8. CGJ Company has provided the following:

200,000 shares of $5 par value common stock are authorized

140,000 shares of common stock were issued for $11 per share

130,000 shares are outstanding

Which of the following statements is false or unknown?

A) Common stock is reported at $700,000 on the balance sheet.

B) Additional paid-in capital is reported at $840,000 on the balance sheet.

C) There are 10,000 shares of treasury stock.

D) Stockholders' equity decreased $110,000 when the treasury stock was purchased.