Multiple Choice Question 100 a corporation\'s own stock, which has been reacquir
ID: 2601419 • Letter: M
Question
Multiple Choice Question 100
a corporation's own stock, which has been reacquired and held for future use.
stock issued by the U.S. Treasury Department.
stock purchased by a corporation and held as an investment in its treasury.
corporate stock issued by the treasurer of a company.
Multiple Choice Question 101
has no effect on total assets and total stockholders' equity.
increases its total assets and total stockholders' equity.
decreases its total assets and total stockholders' equity.
requires that a gain or loss be recognized on the income statement.
Multiple Choice Question 104
Treasury stock should be reported in the financial statements of a corporation as a(n)
liability.
deduction from total paid-in capital and retained earnings.
deduction from total paid-in capital.
investment.
Multiple Choice Question 109
Preference to corporate assets in case of liquidation.
First claim to dividends.
To receive dividends in arrears before common stockholders receive dividends.
The right to vote.
Multiple Choice Question 115
common dividends that have been declared but have not yet been paid.
non-cumulative preferred stock that have not been declared for a given period of time.
cumulative preferred stock that have not been declared for a given period of time.
cumulative preferred stock that have been declared but have not been paid.
Multiple Choice Question 124
last day of the fiscal year end.
date of record.
payment date.
declaration date.
Multiple Choice Question 137
Stock dividends and stock splits have the following effects on retained earnings:
Stock Splits
Stock Dividends
No change
Decrease
Decrease
Decrease
Increase
No change
No change
No change
Multiple Choice Question 140
common stock.
retained earnings.
paid-in capital in excess of par value.
treasury stock.
Multiple Choice Question 100
Treasury stock is
a corporation's own stock, which has been reacquired and held for future use.
stock issued by the U.S. Treasury Department.
stock purchased by a corporation and held as an investment in its treasury.
corporate stock issued by the treasurer of a company.
Explanation / Answer
Q.100) Treasury Stock is a corporation's own stock, which has been reaquired and held for future use, Because a company buys tresury stock to reduce the oustanding stock in the market. so that the current fluctuating price of the stock get stable in th market.
Q.101) The acquisition of treasury stock by a corporation decrease its total assets and total stockholder's equity. Because company have to pay for acquision of treasury stock in open market, which reduce the total assets of the company and the respective amount of treasury stock will deduct from the oustanding equity, finally reducing the total liability side of balance sheet also.
Q.104) Treasury stock should be reported in the financial statements of a corporation as an deduction from total paid-in capital and retained earning.Because company have to pay for acquision of treasury stock in open market, which reduce the total assets of the company and the respective amount of treasury stock will deduct from the oustanding equity, finally reducing the total liability side of balance sheet also.
Q.109) The answer will be The right to vote. because he does not have voting rights to take part in decision making of the company operation.
Q.115) Dividends in arrears are dividends on cumulative preferred stock that have not been declared for a given period of time.
Q.124) The date on which a cash dividend becomes a binding legal obligation is on the declaration date.
Q.137) Stock dividends and stock splits have the following effects on retained earnings: No Change Decrease.
Q.140) Regular dividends are declared out of retained earning.
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