A7

Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock

Which of the following statements is true? I. The formula for the return on equity is: Return on equity = Net income ÷ Average total stockholders' equity. II. When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.

When preparing the stockholders' equity section of the balance sheet, assume that the following accounts have normal balances.  Which of these account balances would not be an addition to the Paid-In Capital section? Group of answer choices Common Stock (credit balance) Treasury Stock (debit balance) Paid-In Capital in Excess Par Common Stock (credit balance) Preferred Stock (credit balance)

Which of the following statements is true about vertical analysis? O a. It is not useful for analyzing changes in financial statements over time O b. It is useful in analyzing relationships within a financial statement. O c. Each line item is expressed as a percent of stockholders' equity. O d. The amount of change in each line item is calculated.

Which of the following statements about stock dividendsis true?a. Stock dividends are reported on the income statement.b. Stock dividends increase total stockholders’ equity.c. Stock dividends decrease total stockholders’ equity.d. None of the above

Which financial ratio does the DuPont equation help to explain?     ROA (return on assets)     ROE (return on equity)     EPS (earnings per share)     DPS (dividends per share)

hich of the following is not true about the stockholders' equity section of a balance sheet? a. Stock characteristics are indicated. b. Preferred stock subscriptions receivable, common stock subscriptions receivable, and treasury stock are subtracted from the total of paid - in capital and retained earnings. c. Contra equity accounts are shown at the beginning of the stockholders' equity section of a balance sheet. d. Retained earnings is listed after all paid - in capital.

Indicate how each of the following accounts should be classified in the equity section.(a) Share Capital—Ordinary. (e) Share Premium—Treasury.(b) Retained Earnings. (f) Share Capital—Preference.(c) Share Premium—Ordinary. (g) Accumulated Other Comprehensive Income.(d) Treasury Shares.

Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. k

The journal entry to record the sale of treasury stock might include a.a credit to Treasury Stock. b.a credit to Paid-In Capital from Sale of Treasury Stock. c.a debit to Paid-In Capital from Sale of Treasury Stock. d.All of these choices are correct.

Questions: 1. Return on total assets 2. Return on common stockholder's equity 3. Book value per share

The stockholders' equity section of the balance sheet typically includes the line items of retained earnings, common stock, treasury stock, and other comprehensive income. Select two of these line items and explain what their balances might indicate about how the company is utilizing the investment by its stockholders. In your response, address whether you would want to purchase stock in the company based on your analysis

Which is not one of the three sources of return for an investor in a common stock? A-debt repurchase B-dividend C-earnings growth d-valuation change

1. Subscribed Share Capital shall be presented as 2. Treasury shares are an entity’s own shares that were previously issued but are subsequently reacquired but not retired. Treasury shares are favorably accounted for 3. Which of the following is the second priority in the valuation of shares issued for services received? a. Par Value of shares b. Billings on services c, FV of services d. FV of shares

It is calculated, taking into account the outstanding equity shares of the company A. Conversion Earnings per share B. Diluted earnings per share C. Basic earnings per share D. Share options

Return on equity……Select one:a. is calculated by dividing net income plus preferred dividends by average common stockholders’ equity.b. is a measure used to compare companies of different sizes.c. is a measure of the ratio of net income to dividends declared.d. is calculated for preferred stock only.

Which of the following affects the total Shareholders’ Equity?     a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares