Question 1 of 20

0.0/ 5.0 Points

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause __________.

A. the periods net income to be understated

B. the periods end liabilities to be understated

C. the total periods end stockholders equity to be understated

D. the periods net income to be overstated

Question 2 of 20

0.0/ 5.0 Points

A stock split __________.

A. causes decrease in the number of shares outstanding

B. increases the par or stated value in proportion

C. reduces retained earnings

D. none of the above

Question 3 of 20

0.0/ 5.0 Points

To record the purchase of treasury stock, __________.

A. debit Treasury Stock-Common (par value.; credit Cash (same.

B. debit Treasury Stock-Common (purchase price.; credit Cash (same.

C. debit Treasury Stock-Common (par value.; debit any difference to Paid-in Capital; credit Cash (purchase price.

D. none of the above

Question 4 of 20

0.0/ 5.0 Points

The entry to record the distribution of the stock dividend would include __________.

A. a credit to Common Stock

B. a debit to Common Stock Distributable

C. both A and B

D. none of the above

Question 5 of 20

0.0/ 5.0 Points

A stock-split journal entry would include a __________.

A. debit to Retained Earnings and a credit to Common Stock

B. debit to Common Stock and a credit to Cash

C. debit to Common Stock Dividend Distributable and a credit Common Stock

D. memorandum notation only

Question 6 of 20

0.0/ 5.0 Points

Which of the following dividend dates does not get a formal journal entry?

A. date of payment

B. date of declaration

C. date of record

D. All receive formal journal entries.

Question 7 of 20

0.0/ 5.0 Points

When ORourke Corporation sells treasury stock for more than the original cost, __________.

A. stockholders equity increases

B. paid-in capital increases

C. retained earnings may increase

D. retained earnings may decrease

Question 8 of 20

0.0/ 5.0 Points

Appropriations to retained earnings are __________.

A. recorded as an contra-asset

B. disclosed in the notes to the financial statements

C. recorded as a contra-liability

D. a contra-stockholders equity

Question 9 of 20

0.0/ 5.0 Points

A retained earnings appropriation is a restriction of retained earnings by __________.

A. accountants

B. senior management

C. stockholders

D. the board of directors

Question 10 of 20

0.0/ 5.0 Points

Codys Western Wear has 2,000 shares of $10 par value common stock outstanding. During the current year, the company distributed a 10% stock dividend. The market value of the stock at that time was $16 per share. Codys total stockholders equity should increase or decrease by __________.

A. $0.

B. $1,200

C. $2,000

D. ($3,200.

Question 11 of 20

0.0/ 5.0 Points

Farm and Supply reissued 100 shares of treasury stock at $20 that had been reacquired for $15 per share. What is the entry?

A. debit Cash $2,000; credit Treasury Stock-Common $1,500, credit Paid-In Capital from Treasury Stock $500

B. debit Cash $2,000; credit Treasury Stock-Common $2,000

C. debit Cash $1,500; Paid-In Capital from Treasury Stock $500, credit Treasury Stock-Common $2,000

D. none of the above

Question 12 of 20

0.0/ 5.0 Points

Treasury Stock is what type of account?

A. stockholders equity

B. liability

C. asset

D. contra-stockholders equity

Question 13 of 20

0.0/ 5.0 Points

Ricks Internet Corporations balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriated for future business expansion. This will cause total retained earnings to __________.

A. remain at $30,000

B. increase by $15,000

C. decrease by $15,000

D. increase or decrease $5,000, as determined by the board

Question 14 of 20

0.0/ 5.0 Points

Treasury stock was purchased and recorded as an asset. This error would cause __________.

A. the periods end assets to be understated

B. the periods end liabilities to be overstated

C. the periods end stockholders equity to be overstated

D. none of the above

Question 15 of 20

0.0/ 5.0 Points

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash. This error would cause __________.

A. the periods end assets to be overstated

B. the periods end liabilities to be overstated

C. the periods end stockholders equity to be understated

D. none of the above

Question 16 of 20

0.0/ 5.0 Points

Before a three-for-one stock split, the shares outstanding were 5,000 shares at $12 par. After the split, what was the par and number of shares?

A. 15,000 shares at $12 per share

B. 20,000 shares at $6 per share

C. 15,000 shares at $4 per share

D. 5,000 shares at $48 per share

Question 17 of 20

0.0/ 5.0 Points

A distribution to stockholders in the form of cash is called a __________.

A. stock dividend

B. stock split

C. stock conversion

D. cash dividend

Question 18 of 20

0.0/ 5.0 Points

Treasury stock was sold above cost and the excess was credited to Gain on Sale. This error would cause __________.

A. the periods end assets to be overstated

B. the periods end liabilities to be overstated

C. the total periods end stockholders equity to be overstated

D. the periods net income to be overstated

Question 19 of 20

0.0/ 5.0 Points

Which of the following is the journal entry to record the declaration of a stock dividend?

A. debit Common Stock Dividend Distributable (number of shares par value common stock.; credit Common Stock (same.

B. debit Common Stock Dividend Distributable (number of shares market value common stock.; credit Common Stock (same.

C. debit Retained Earnings (market value number of shares.; credit Common Stock Dividend Distributable (number of shares par value.; credit Paid-In Capital in Excess of Par Stock Dividend (market value - par value. number of shares

D. debit Common Stock (number of shares par value.; credit Cash

Question 20 of 20

0.0/ 5.0 Points

The journal entry to record the issuance of a stock dividend is to __________.

A. debit Common Stock Dividend Distributable (number of shares par value common stock.; credit Common Stock (same.
B. debit Common Stock Dividends Distributable (number of shares market value common stock.; credit Common Stock (same.
C. debit Retained Earnings (market value number of shares.; credit Common Stock Dividends Distributable (number of shares par value.; credit Paid-in Capital in Excess of Par-Stock Dividend
D. debit Common Stock Dividend Distributable (number of shares par value.; credit Cash