Question : 91. Which of the following statements correct? A. A treasury stock purchase for : 1228439

91. Which of the following statements is correct? 
A. A treasury stock purchase for less than its original issue cost results in a decrease in total stockholders’ equity.
B. A treasury stock purchase for less than its original issue cost results in an increase in total stockholders’ equity.
C. A treasury stock purchase for an amount equal to its original issue cost results in no change to total stockholders’ equity.
D. A treasury stock purchase for more than its original issue cost results in an increase in total stockholders’ equity.

92. Atkins Company had 20,000 shares of $5 par value common stock outstanding prior to a 10% common stock dividend declaration and distribution. The market value of the common stock on the declaration date was $11. Which of the following statements correctly describes the affect of the common stock dividend and declaration? 
A. Retained earnings decreased $22,000.
B. Retained earnings decreased $10,000.
C. Total stockholders’ equity decreased $22,000.
D. Total stockholders’ equity decreased $10,000.

93. Katie Company had 40,000 shares of $2 par value common stock outstanding prior to a 40% common stock dividend declaration and distribution. The market value of the common stock on the declaration date was $10. Which of the following statements incorrectly describes the affect of the common stock dividend and declaration? 
A. Retained earnings decreased $32,000.
B. Capital in excess of par remained the same.
C. Contributed capital increased $128,000.
D. Total stockholders’ equity remained the same.

94. Which of the following statements is correct? 
A. The dividend yield and earnings per share both have the same denominator.
B. The dividend yield and earnings per share both have the same numerator.
C. Dividends per share are used in calculation of both earnings per share and dividend yield.
D. Net income is used in the calculation of earnings per share but not in the calculation of dividend yield.

95. Which of the following statements correctly describes either the dividend yield or earnings per share? 
A. The dividend yield decreases when net income increases.
B. Earnings per share are per share of both common and preferred stock.
C. The dividend yield increases when the market price per share decreases.
D. Earnings per share decreases when dividends per share decrease.

96. Which of the following statements incorrectly describes earnings per share? 
A. Earnings per share are per common share.
B. An increase in the market price per common share does not result in a decrease in earnings per share.
C. An increase in dividends per share results in an increase in earnings per share.
D. The reissue of treasury stock decreases earnings per share.

97. Which of the following is not a primary advantage of a general partnership relative to a corporation? 
A. The ease of formation.
B. The limited liability for the owners.
C. There isn’t income taxation on the business itself.
D. The complete control of the business given to the partners.

98. Which of the following is true about a proprietorship? 
A. The capital account is used to record only the investments of the owner.
B. The drawing account records distribution of assets to the proprietor.
C. A proprietorship is a separate legal entity from the owner.
D. A proprietorship is subject to income tax.

99. Which of the following statements is true about a partnership? 
A. One capital and drawing account is used for each partnership.
B. The capital account is used to record each partner’s investment and their designated share of the earnings.
C. Partnerships are subject to income taxes.
D. The drawings account is closed to retained earnings at the end of the period.

100. Which of the following statements is true about partnership accounting? 
A. A particular partner’s capital account is debited when a withdrawal takes place by that partner.
B. The process of closing, through the closing entry process, a positive net income results in an increase in overall partner capital.
C. The drawings account balances are deducted to arrive at the net income to allocate to the partners.
D. The drawings account is closed to retained earnings at the end of the period.