Questions from Financial Accounting

Q: Your parents have just retired and have asked you for some financial

Your parents have just retired and have asked you for some financial advice. They have decided to invest $100,000 in a company very similar to Kroger. The company has issued both common and preferred...

Q: The balance sheet for Ronlad Corporation reported 168,000 shares outstanding

The balance sheet for Ronlad Corporation reported 168,000 shares outstanding, 268,000 shares authorized, and 10,000 shares in treasury stock. Compute the maximum number of new shares that the company...

Q: A journal entry is not recorded on what date? a

A journal entry is not recorded on what date? a. Date of declaration. b. Date of record. c. Date of payment. d. A journal entry is recorded on all of these dates.

Q: A company has net income of $225,000 and declares

A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. What is the net impact on retained earnings? a. Increase of $225,000 b. Decrease of $75,000 c. Increase...

Q: Which statement regarding dividends is false? a. Dividends represent

Which statement regarding dividends is false? a. Dividends represent a sharing of corporate profits with owners. b. Both stock and cash dividends reduce retained earnings. c. Cash dividends paid to st...

Q: When treasury stock is purchased with cash, what is the impact

When treasury stock is purchased with cash, what is the impact on the balance sheet equation? a. No change: the reduction of the asset cash is offset with the addition of the asset treasury stock. b....

Q: The annual report for Walt Disney Company contained the following note:

The annual report for Walt Disney Company contained the following note: The Company has outstanding $1.3 billion of convertible senior notes due on April 15, 2023. The notes bear interest at a fixed a...

Q: Does a stock dividend increase an investor’s personal wealth immediately?

Does a stock dividend increase an investor’s personal wealth immediately? a. No, because the stock price falls when a stock dividend is issued. b. Yes, because the investor has more shares. c. Yes, be...

Q: Katz Corporation has issued 400,000 shares of common stock and

Katz Corporation has issued 400,000 shares of common stock and holds 20,000 shares in treasury. The charter authorized the issuance of 500,000 shares. The company has declared and paid a dividend of $...

Q: Which statement regarding treasury stock is false? a. Treasury

Which statement regarding treasury stock is false? a. Treasury stock is considered to be issued but not outstanding. b. Treasury stock has no voting, dividend, or liquidation rights. c. Treasury stock...