Question :
41. The corporation’s own stock that has been issued and then : 1236036
41. The corporation’s own stock that has been issued and then repurchased by the company is referred to as:
A. Preferred Stock.
B. Authorized Stock.
C. Treasury Stock.
D. Common Stock.
42. When treasury stock is resold at a gain, the difference between its cost and the cash received when resold:
A. Increases net income.
B. Increases stockholders’ equity.
C. Has no effect on net income or stockholders’ equity.
D. Increases net income but decreases stockholders’ equity.
43. Crossroads Mall had 100,000 outstanding shares of common stock. On June 16, 2012, Crossroads repurchased 20,000 shares of its own stock at $30 per share. On July 23, 2012, Crossroads resold 10,000 shares at $28 per share. What net effect did the repurchase and the resell of common stock have on the accounting equation?
A. Increase in assets and decrease in stockholders’ equity.
B. Decrease in assets and increase in stockholders’ equity.
C. Increase in assets and increase in stockholders’ equity.
D. Decrease in assets and decrease in stockholders’ equity.
44. On December 2, Coley Corp. reacquired 1,000 shares of its $2 par value common stock for $27 each. On December 20, Coley Corp. reissued 400 shares for $15 each. Which of the following is correct regarding the journal entry for the reissued shares?
A. Debit Cash $15,000.
B. Credit Treasury Stock $10,800.
C. Credit Paid in Capital – Treasury Stock $5,200.
D. Credit Treasury Stock $6,000.
45. On November 6, Coleman Corp. reacquired 1,000 shares of its $2 par value common stock for $27 each. On November 20, Coleman Corp. reissued 400 shares for $30 each. Which of the following is correct regarding the effect of the journal entry for the reissued shares?
A. Assets decrease.
B. Liabilities decrease.
C. Expenses increase.
D. Stockholders’ Equity increases.
46. On February 22, Brett Corporation reacquired 200 shares of its $5 par value common stock for $25 each. On March 15, the company reissued 70 shares for $30 each. What is true of the journal entry for reissuing their shares?
A. Credit Cash $1,750.
B. Credit Additional Paid in Capital $350.
C. Debit Treasury Stock $1,750.
D. Credit Treasury Stock $2,100.
47. Retained Earnings represent a company’s:
A. Net income less dividends since the company first started.
B. Undistributed net assets.
C. Extra paid-in capital.
D. Undistributed cash.
48. The Retained Earnings balance reported on the balance sheet typically is not affected by:
A. Net income.
B. Net loss.
C. Dividends paid.
D. Stock splits.
49. The balance of Retained Earning at the end of the year represents:
A. current year’s profits less payments to owners.
B. total earnings less payments to owners over the life of the company.
C. total contributions from owners less withdrawals over the life of the company.
D. total earnings over the life of the company.
50. Retained Earnings:
A. has a normal debit balance.
B. decreases stockholders’ equity.
C. is equal to the balance in cash.
D. increases stockholders’ equity.
