Business

CHAPTER 11

STOCKHOLDERS’ EQUITY

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

Estimated

Time in

Learning Outcomes Exercises Minutes Level

1. Understand the concept of stockholders’ equity and identify the 1 10 Easy

components of the Stockholders’ Equity category of the balance 2 10 Mod

sheet and the accounts found in each component.

2. Show that you understand the characteristics of common

and preferred stock and the differences between the classes

of stock.

3. Determine the financial statement impact when stock is 3 10 Mod

issued for cash or other consideration. 4 20 Mod

4. Describe the financial statement impact of stock treated as 5 15 Mod

treasury stock. 6 15 Mod

5. Compute the amount of cash dividends when a firm has 7 10 Mod

issued both preferred and common stock. 8 15 Mod

6. Show that you understand the difference between cash 9 15 Mod

and stock dividends and the effect of stock dividends.

7. Determine the difference between stock dividends and stock 10 15 Diff

splits. 11 15 Diff

8. Show that you understand the statement of stockholders’ 12 10 Easy

equity and comprehensive income. 13 15 Diff

9. Understand how investors use ratios to evaluate stockholders’ 14 5 Mod

equity.

10. Explain the effects that transactions involving stockholders’ 15 5 Mod

equity have on the statement of cash flows. 16 5 Mod

17 5 Mod

18 5 Easy

11. Describe the important differences between the sole 19 15 Mod

proprietorship and partnership forms of organization 20 10 Mod

versus the corporate form. (Appendix)

*Exercise, problem, or case covers two or more learning outcomes

Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

Problems Estimated

and Time in

Learning Outcomes Alternates Minutes Level

1. Understand the concept of stockholders’ equity and identify the 1 20 Mod

components of the Stockholders’ Equity category of the balance 12* 15...