Question

(T / F) Assuming a company has not issued any preferred shares, the return on average common stockholders' equity equals net income available to common stockholders divided by average common stockholders' equity.

Select one:

True

False

(T / F) Paid-in capital is presented in the stockholders' equity section of the balance sheet. Each source of paid-in capital is listed separately.

Select one:

True

False

(T / F) Extraordinary items are both usual and interesting in nature. Extraordinary items appear on the income statement (net-of-tax effect) as part of "Income from continuing operations".

Select one:

True

False

(T / F) Income available to common stockholders is net income plus any dividends on preferred stock.

Select one:

True

False

(T / F) The retained earnings balance of a corporation is part of its paid-in capital.

Select one:

True

False

Answer 1

	Answer =1
	When there is no preferred shares than all available balance after tax is distributed
	only to the commonshareholders.
	So, the given statement is True
	Answer = True
	Answer = 2
	Yes , the given statement is correct because each sources of paid in capital will presented separtely.
	Answer = True
	Answer =3
	Extrordinary items are not from a part of "Income from continuing operations"
	So, the given statement is not true.
	Answer = False
	Answer =4
	No, dividend on preferred stock will not included in the income of common shareholders
	Answer = False
	Answer = 5
	Retained earning balance of a corporation is not a part of its paid-in capital
	So, Answer = False