FAR — Financial Accounting & Reporting — Quiz 61

Questions in this quiz (10)

1. Which account records the par value of issued preferred stock?

   • Retained earnings
   • Preferred stock
   • Additional paid-in capital
   • Treasury stock

2. Which account records amounts received above par value for stock issued?

   • Retained earnings
   • Treasury stock
   • Additional paid-in capital
   • Revenue

3. Which of the following best describes retained earnings?

   • Cash collected from customers
   • Accumulated profits not distributed
   • Capital contributions from owners
   • Interest revenue earned

4. Which transaction increases retained earnings?

   • Dividend declaration
   • Net income
   • Stock repurchase
   • Net loss

5. Which transaction decreases retained earnings?

   • Net income
   • Dividend payments
   • Stock issuance
   • Revenue growth

6. Which of the following best describes dividends?

   • Payments to suppliers
   • Distributions of profits to shareholders
   • Employee compensation
   • Interest payments

7. Which date determines which shareholders receive dividends?

   • Declaration date
   • Record date
   • Payment date
   • Issue date

8. Which date is when the board of directors approves a dividend?

   • Record date
   • Payment date
   • Declaration date
   • Maturity date

9. Which date is when dividends are distributed to shareholders?

   • Declaration date
   • Record date
   • Payment date
   • Issue date

10. Which account is debited when dividends are declared?

    • Cash
    • Dividends or retained earnings
    • Revenue
    • Accounts payable