51 on may 1 2017 when the market value of jay ltd 39 s common shares was 15 per shar 4314604

51.On May 1, 2017, when the market value of Jay Ltd.'s common shares was $15 per share, the corporation had 100,000 no par value common shares issued and outstanding. On this day, Jay declared and issued a 15% common stock dividend. As a result of this stock dividend, Jay's total shareholders' equity

a) increased by $225,000.

b) decreased by $225,000.

c) decreased by $15,000.

d) didnot change.

52.How would total shareholders' equity be affected by the declaration of each of the following?

Stock dividendStock split

a) no effectincrease

b) decrease              decrease

c) decreaseno effect

d) no effectno effect

53.Shareholders' equity is generally classified into two major categories:

a) contributed capital and donated capital.

b) contributed surplus and retained earnings.

c) retained earnings and accumulated other comprehensive income.

d) earned capital and contributed capital.

54.How should cumulative preferred dividends in arrears be shown on the balance sheet?

a) as an increase in shareholders' equity

b) as an increase in current liabilities

c) as an increase in current liabilities for the amount expected to be declared within the next year, and as an increase in long-term liabilities for the balance

d) by note disclosure only

55.Under IFRS, the Statement of Changes in Shareholders’ Equity must include

a) share capital and retained earnings only.

b) share capital and contributed surplus only.

c) share capital, accumulated other comprehensive income, contributed surplus, and retained earnings.

d) retained earnings, share capital, and accumulated other comprehensive income.

56.The payout ratio can be calculated by

a) dividingcash dividends per share by earnings per share.

b) dividing cash dividends by net income less preferred dividends.

c) dividing cash dividends by market price per share.

d) dividingnet income by cash dividends per share.

57.The rate of return on common shareholders’ equity shows

a) the amount of leverage the corporation employs.

b) the amount that each common shareholder would receive if the company were liquidated.

c) how many dollars of net income were earned for each dollar invested by the owners.

d) how the market value of the shares relates to the current earnings per share.

58.The price earnings (P/E) ratio is calculated by

a) dividing dividends per share by earnings per share.

b) dividing the market price of the share by earnings per share.

c) dividingnet income by cash dividends per share.

d) dividing cash dividends paid by the market price per share.

59.Hamilton Ltd. has both common shares and non-participating, noncumulative preferred shares outstanding. The book value per common share is NOTaffected by

a) the declaration of a preferred stock dividend.

b) thedeclaration of a common stock dividend when the market price of the common is equal to its issue price.

c) a 2-for-1 split of the common shares.

d) the payment of a previously declared cash dividend on the common shares.

*60.A “gain” on the sale of treasury shares should be credited to

a) contributed surplus.

b) the share capital account.

c) retained earnings.

d) other income.