Question : 31. Changes in accounting estimates are: A. Considered accounting errors.B. Reported as prior period : 1256405

31. Changes in accounting estimates are: 
A. Considered accounting errors.
B. Reported as prior period adjustments.
C. Accounted for with a cumulative “catch-up” adjustment.
D. Extraordinary items.
E. Accounted for in current and future periods.

32. A company had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5,625 in the current period. The ending balance in retained earnings account is equal to: 
A. $108,625
B. $(12,625)
C. $11,375
D. $43,375
E. $(11,375)

33. The statement of changes in stockholders’ equity: 
A. Is part of the statement of retained earnings.
B. Shows only the ending balances in stockholders’ equity.
C. Describes changes in contributed capital and retained earnings subcategories
D. Does not include changes in treasury stock.
E. Is reported by very few companies.

34. When all of the authorized shares have the same rights and characteristics, the stock is referred to as:
A. Preferred shares under both IFRS and GAAP.
B. Common shares under both IFRS and GAAP.
C. Plain shares under IFRS and common shares under GAAP.
D. Simple shares under IFRS and pure shares under GAAP.
E. Share capital under IFRS and common shares under GAAP.

35. A company has 2,000 shares of $1 par value common stock and 200 shares of 5%, $110 par, noncumulative preferred stock outstanding. The balance in Retained Earnings at the  of the year was $500,000. Net income for the current year was $300,000. If the company paid a dividend of $2 per share on its common stock, what is the balance in Retained Earnings at the  of the year? 
A. $800,000
B. $805,100
C. $794,900
D. $494,900
E. $194,900

36. A company has 3,000 shares of $2 par value common stock and 1,500 shares of 8%, $150 par, noncumulative preferred stock outstanding. The balance in Retained Earnings at the  of the year was $400,000. The net loss for the current year was $30,000. If the company paid a dividend of $1 per share on its common stock, what is the balance in Retained Earnings at the  of the year? 
A. $349,000
B. $365,800
C. $451,000
D. $400,000
E. $409,000

37. A company has 5,000 shares of $1 par value common stock and 6,000 shares of 2%, $98 par, noncumulative preferred stock outstanding. The balance in Retained Earnings at the  of the year was $750,000. Net income for the current year was $400,000. If the company paid a dividend of $3 per share on its common stock, what is the balance in Retained Earnings at the  of the year? 
A. $1,123,240
B. $1,135,000
C. $1,150,000
D. $735,000
E. $723,240

38. The amount of income earned per share of a company’s common stock is known as: 
A. Restricted retained earnings per share.
B. Earnings per share.
C. Continuing operations per share.
D. Dividends per share.
E. Book value per share.

39. Shamrock Company had net income of $30,000. On January 1, there were 8,000 shares of common stock outstanding. On April 1, the company issued an additional 2,000 shares of common stock. There were no other stock transactions. The company has earnings per share of: 
A. $3.75
B. $3.00
C. $3.33
D. $15.00
E. $3.16

40. Shamrock Company had net income of $30,000. On January 1, there were 8,000 shares of common stock outstanding. On April 1, the company issued an additional 2,000 shares of common stock. The company declared a $2,700 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company has an earnings per share of: 
A. $2.87
B. $2.73
C. $3.41
D. $3.16
E. $3.75