ACCT 2101 Chapters 10+12 Review

A company debits Additional Paid-In Capital for the portion of the cash proceeds above par value received for the issuance of stock.

• True
• False

Outstanding stock

• is the numbered of issued shares repurchased by the company.

• is the total number of issued shares.

• is the number of issued shares held by investors.

• is the number of shares that have been sold to investors.

Only outstanding stock receives dividends.

• True
• False

The number of shares outstanding is​ (a)   to the number of shares​ (b)   by the company minus the number of the company's own shares that it has​ (c)   .

Retained earnings, as reported in the balance sheet, is affected by what?

• Net Income

• Shares Outstanding

• Net Loss

• Dividends Paid

Authorized stock is the total number of shares available to sell.

• True
• False

Other things being equal, the higher the debt to equity ratio, the lower the risk of bankruptcy.

• True
• False

The current ratio is always larger than or equal to the acid-test ratio.

• True
• False

Comparing operating expenses as a percentage of sales is an example of​ (a)   analysis.

What does the receivables turnover ratio measure?