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ACC 551 Week 5 Quiz

This document summarizes an exam grading results for a student. The student received 12 out of 20 points total for the multiple choice exam, answering 3 out of 5 questions correctly. Details are provided for each question, including the student's answer and instructor explanation and comments. The last question was about the amount preferred stockholders would receive in a $63,000 dividend distribution, to which the student incorrectly answered $63,000 when the correct amount was $48,000.

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Natasha Declan
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1K views

ACC 551 Week 5 Quiz

This document summarizes an exam grading results for a student. The student received 12 out of 20 points total for the multiple choice exam, answering 3 out of 5 questions correctly. Details are provided for each question, including the student's answer and instructor explanation and comments. The last question was about the amount preferred stockholders would receive in a $63,000 dividend distribution, to which the student incorrectly answered $63,000 when the correct amount was $48,000.

Uploaded by

Natasha Declan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Grading Summary These are the automatically computed results of your exam.

Grades for essay questions, and comments from your instructor, are in the "Details" section below. Question Type: Multiple Choice Date Taken: Time Spent: Points Received: # Of Questions: 5 2/1/2012 34 min , 06 secs 12 / 20 (60%) # Correct: 3

Grade Details 1. Question :

(TCO E) Stockholders' equity is generally classified into two major categories: contributed capital and appropriated capital. appropriated capital and retained earnings. retained earnings and unappropriated capital. earned capital and contributed capital.

Student Answer:

Instructor Explanation:

Chapter 15. Page 744


4 of 4

Points Received: Comments:

2.

Question : Student Answer:

(TCO E) A "secret reserve" will be created if inadequate depreciation is charged to income. a capital expenditure is charged to expense. liabilities are understated. stockholders' equity is overstated.

Instructor Explanation:

Chapter 15. Page 748


4 of 4

Points Received: Comments:

3.

Question :

(TCO E) Norton Company issues 4,000 shares of its $5 par value common stock having a market value of $25 per share, and 6,000 shares of its $15 par value preferred stock having a market value of $20 per share, all for a lump sum of $192,000. What amount of the

proceeds should be allocated to the preferred stock?


Student Answer:

$172,000 $120,000 $104,727 $90,000


Instructor Explanation:

(4,000 X $25) + (6,000 X $20) = $220,000 ($120,000 $220,000) X $192,000 = $104,727. Chapter 15.
0 of 4

Points Received: Comments:

4.

Question :

(TCO F) Anders, Inc., has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 dividend in 2010 and in 2011. What is the amount of dividends received by the common stockholders in 2011? $15,000 $25,000 $45,000 $0

Student Answer:

Instructor Explanation:

5,000 X $100 X .05 = $25,000 ($45,000 X 2) - ($25,000 X 3) = $15,000. Chapter 15.


4 of 4

Points Received: Comments:

5.

Question :

(TCO F) Written, Inc. has outstanding 300,000 shares of $2 par common stock and 60,000 shares of no-par 8% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that $63,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?

Student Answer:

$21,000. $24,000. $48,000. $63,000.


Instructor Explanation:

60,000 X $5 X .08 X 3 = $72,000 > $63,000. Chapter 15.

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