121.Which of the following amounts should be disclosed in the stockholders' equity section of the balance sheet?
a.the number of shares of common stock outstanding
b.the number of shares of common stock issued
c.the number of shares of common stock authorized
d.all of these
122.Significant changes in stockholders' equity are reported in
a.income statement
b.retained earnings statement
c.statement of stockholders' equity
d.statement of cash flows
123.Retained earnings
a.is the same as contributed capital
b.cannot have a debit balance
c.changes are summarized in the retained earnings statement
d.is equal to cash on hand
124.Which of the following would appear as a prior period adjustment?
a.loss resulting from the sale of fixed assets
b.difference between the actual and estimated uncollectible accounts receivable
c.error in the computation of depreciation expense in the preceding year
d.loss from the restructuring of assets
125.A restriction/appropriation of retained earnings
a.decreases total assets
b.increases total retained earnings
c.decreases total retained earnings
d.has no effect on total retained earnings
126.The Dayton Corporation began the current year with a retained earnings balance of $32,000. During the year, thecompany corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000on equipment. Also, during the current year, the company earned net income of $12,000 and declared cashdividends of $7,000. Compute the year-end retained earnings balance.
a. $34,000
b. $37,000
c. $41,000
d. $44,000
127.What is the total stockholders' equity based on the following data?
Common Stock$360,000
Excess of Issue Price Over Par735,000
Retained Earnings (Deficit)(56,000)
a. $1,095,000
b. $1,151,000
c. $1,039,000
d. $679,000
128.The two main sources of stockholders' equity are
a.investments by stockholders and net income retained in the business
b.investments by stockholders and dividends paid
c.net income retained in the business and dividends paid
d.investments by stockholders and purchases of assets
129.Treasury stock should be reported in the financial statements of a corporation as a(n)
a.investment
b.liability
c.current asset
d.deduction from stockholders' equity
130.A reduction of par or stated value of stock results from a
a.liquidating dividend
b.stock split
c.stock option
d.preferred dividend