Question 1

If a company has preferred stock, the preferred stock dividend is added to net income when computing earnings per common share.

Accepted Answer

A) True 
 B)False

Question 2

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Accepted Answer

A)   $12,800
B)   $19,200
C)   $32,000
D)   $48,800E) A) and D)
F) All of the above

Question 4

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credits are made to

Accepted Answer

A)   Common Stock, $14,000
B)   Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000
C)   Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000
D)   Common Stock, $10,000, and Retained Earnings, $4,000E) B) and C)
F) A) and C)

Question 5

The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called

Accepted Answer

A)   treasury stock
B)   issued stock
C)   outstanding stock
D)   authorized stockE) C) and D)
F) A) and B)

Question 6

A restriction/appropriation of retained earnings establishes cash assets that are set aside for a specific purpose.

Accepted Answer

A) True 
 B)False

Question 7

A disadvantage of the corporate form of business entity is

Accepted Answer

A)   mutual agency for stockholders
B)   unlimited liability for stockholders
C)   corporations are subject to more governmental regulations
D)   the ease of transfer of ownershipE) C) and D)
F) All of the above

Exam 11: Corporations: Organization, Stock Transactions, and Dividends

The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called

Correct Answer
verified

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credits are made to

Correct Answer
verified

If a company has preferred stock, the preferred stock dividend is added to net income when computing earnings per common share.

Correct Answer
verified

Correct Answer
verified

A disadvantage of the corporate form of business entity is

Correct Answer
verified

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

Correct Answer
verified

A restriction/appropriation of retained earnings establishes cash assets that are set aside for a specific purpose.

Correct Answer
verified

Exam 11: Corporations: Organization, Stock Transactions, and Dividends

The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called

Correct AnswerverifiedShow Answer

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credits are made to

Correct AnswerverifiedShow Answer

If a company has preferred stock, the preferred stock dividend is added to net income when computing earnings per common share.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A disadvantage of the corporate form of business entity is

Correct AnswerverifiedShow Answer

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

Correct AnswerverifiedShow Answer

A restriction/appropriation of retained earnings establishes cash assets that are set aside for a specific purpose.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified