Questions from Financial Accounting

Q: Define treasury stock. Why do corporations acquire treasury stock?

Define treasury stock. Why do corporations acquire treasury stock?

Q: How is treasury stock reported on the balance sheet? How is

How is treasury stock reported on the balance sheet? How is the “gain or loss” on treasury stock that has been sold reported on the financial statements?

Q: What are the two basic requirements to support the declaration of a

What are the two basic requirements to support the declaration of a cash dividend? What are the effects of a cash dividend on assets and stockholders’ equity?

Q: Differentiate between cumulative and noncumulative preferred stock.

Differentiate between cumulative and noncumulative preferred stock.

Q: Define stock dividend. How does a stock dividend differ from a

Define stock dividend. How does a stock dividend differ from a cash dividend?

Q: What are the primary reasons for issuing a stock dividend?

What are the primary reasons for issuing a stock dividend?

Q: Identify and explain the three important dates with respect to dividends.

Identify and explain the three important dates with respect to dividends.

Q: Define retained earnings. What are the primary components of retained earnings

Define retained earnings. What are the primary components of retained earnings at the end of each period?

Q: Define the term corporation and identify the primary advantages of this form

Define the term corporation and identify the primary advantages of this form of business organization.

Q: On January 1, 2011, Frog Corporation sold a $2

On January 1, 2011, Frog Corporation sold a $2,000,000, 10 percent bond issue (8.5 percent market rate). The bonds were dated January 1, 2011, pay interest each June 30 and December 31, and mature in...