Question

Edit 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

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.

True

Paid-in capital is presented in the stockholders' equity section of the balance sheet. Each source of paid-in capital is listed separately.

True

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".

True

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

False-

income available to common stockholders is net income LESS any dividends on preferred stock.