Preferred stockholders________.

A.receive a set percentage of corporation net income

B.are guaranteed that they will not have a loss on their investment

C.receive a dividend preference over common stockholders

D.are guaranteed to receive an annual dividend payment

For accountingpurposes, par value stock is treated the same as stated value stock except for the account names.

True

False

Which of the following actions will increase the Common Stockaccount?

A.stock split

B.purchase of treasury stock

C.cash dividend

D.stock dividend declared and distributed

Which of the following requires a formal journalentry?

A.selection of a new CEO

B.stock split

C.date of record for cash dividends

D.stock dividend distribution

A company originally issued 10,000 shares of $9.00 par value common stock at $17.00 per share. The board of directors declares a 14% stock dividend when the market price of the stock is $21.00 a share. Which of the following is included in the entry to record the declaration of a stockdividend?

A.Stock Dividends is debited for $14,700.

B.Common Stock$9.00 Par Value is credited for $28,000.

C.Stock Dividends is debited for $29,400.

D.Common Stock is credited for $29,400.

The following information is from the December31, 2018 balance sheet of May Corporation.

PreferredStock, $100 par $390,000

Paid-In Capital in Excess of ParPreferred 25,000

CommonStock, $1 par 152,000

Paid-In Capital in Excess of ParCommon 346,000

Retained Earnings 83,900

TotalStockholders' Equity $996,900

What was the totalpaid-in capital as of December31, 2018?

A.$888,000

B.$913,000

C.$996,900

D.$736,000

The entry to record the payment of a previously declared dividend of$0.25 per share on18,500 shares of common stock includes a________.

A.debit to Dividends Payable for$4,625

B.debit to Cash$4,625

C.debit to Cash Dividends for$4,625

D.credit to Cash Dividends for$4,625

The disposal of a business segment is reported as discontinued operations.

True

False

To compare companies of differentsizes, investors need some standard profitability ratios.

True

False

The 2019 balance sheet for Standard Electronics reported the following items with 2018 figures given for comparison:

Standard Electronics

Balance Sheet

As of December31, 2019

Total Assets

$571,000

Total Liabilities

330,000

TotalStockholders' Equity(all common)

241,000

Total Liabilities and Stockholders' Equity $571,000

Standard Electronics

Balance Sheet

As of December31, 2018

Total Assets $494,000

Total Liabilities 284,000

TotalStockholders' Equity(all common) 210,000

Total Liabilities and Stockholders' Equity $494,000

Net income for 2019 was$25,000. Compute the rate of return on commonstockholders' equity for 2019.(Round your final answer to two decimalplaces.)

A.4.38%

B.4.69%

C.10.37%

D.11.09%

The declaration of a stock dividend creates a liability for the corporation.

True

False

When 8,000 shares of $4.00 stated value common stock is issued at $16.00 pershare, ________.

A.the accounting is exactly the same as the accounting for par value stock

B.the difference between the issue price and the stated value is credited to PaidIn Capital in Excess of StatedCommon

C.Common Stock $4.00 Stated is credited for $128,000

D.the account titled PaidIn Capital in Excess of StatedCommon is used to record the issue price of the stock

The purchase of treasury stock________.

A.increases assets andstockholders' equity

B.decreases assets andstockholders' equity

C.increases assets and decreasesstockholders' equity

D.decreases assets and increasesstockholders' equity

A profitable corporation may make distributions to stockholders in the form of bonuses.

True

False