51.The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in thenotes to the financial statements.
a.True
b.False
52.The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining totalstockholders’ equity.
a.True
b.False
53.The retained earnings statement may be combined with the income statement.
a.True
b.False
54.If paid-in-capital in excess of par/preferred stock is $30,000, preferred stock is $200,000, paid-in capital in excess ofpar/common stock is $20,000, common stock is $525,000, and retained earnings is $105,000 (deficit), the totalstockholders' equity is $880,000.
a.True
b.False
55.A corporation has 10,000 shares of $100 par stock outstanding. If the corporation issues a 5-for-1 stock split, thenumber of shares outstanding after the split will be 40,000.
a.True
b.False
56.The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage moreinvestors to enter the market for the company's shares.
a.True
b.False
57.The reduction in the par or stated value of common stock, accompanied by the issuance of a proportionate numberof additional shares, is called a stock split.
a.True
b.False
58.A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150. If thecorporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately $50.
a.True
b.False
59.A stock split results in a transfer at market value from retained earnings to paid-in capital.
a.True
b.False
60.If a company has preferred stock, the preferred stock dividend is added to net income when computing earningsper common share.
a.True
b.False