Question 1

Common shares

Accepted Answer

A) Represent residual equity in a corporation 
B) Always represent total contributed capital 
C) Allow shareholders to bind the corporation to contracts because they share in ownership 
D) Make shareholders liable for acts of the corporation because they share in ownership 
E) Are usually redeemable 
A) Represent residual equity in a corporation 
B) Always represent total contributed capital 
C) Allow shareholders to bind the corporation to contracts because they share in ownership 
D) Make shareholders liable for acts of the corporation because they share in ownership 
E) Are usually redeemable

Question 2

Whenever the dividend rate on preferred shares is higher than the rate the corporation earns on its assets,the effect of issuing preferred shares is to increase the dividend rate earned by common shareholders.

Accepted Answer

A) True 
 B)False

Question 3

Quality Cleaning Corp.issued 50 no-par-value common shares for land with a market value of $4,000.Dillon had originally issued common shares at $100 two years ago,but there is currently no market value available for their shares.The amount of contributed capital arising from this transaction is

Accepted Answer

A) $100 
B) $600 
C) $1,000 
D) $4,000 
E) $6,000 
A) $100 
B) $600 
C) $1,000 
D) $4,000 
E) $6,000

Question 4

Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called

Accepted Answer

A) Convertible preferred shares 
B) Callable preferred shares 
C) Private shares 
D) Cumulative preferred shares 
E) Participating preferred shares 
A) Convertible preferred shares 
B) Callable preferred shares 
C) Private shares 
D) Cumulative preferred shares 
E) Participating preferred shares

Question 5

A limited liability company is a corporation for professionals such as lawyers and accountants.

Accepted Answer

A) True 
 B)False

Question 6

Callable preferred shares give the shareholders the option of exchanging their preferred shares into common shares at a specified rate.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the effect of the dividend preference for preferred shares.

Accepted Answer

Preferred shareholders have the right to

Question 8

When issuing common shares,the initial investment is credited to Common Shares.

Accepted Answer

A) True 
 B)False

Question 9

The following account balances for Bucha Corporation are for the year ended October 31,2021.Complete an Income Statement for the year assuming the income tax rate is 20%.
 $\begin{array}{|l|r|}
\hline \text { Revenues } & 3,880.00 \
\hline \text { Operating Expense } & 895.00 \
\hline \text { Gain on Sale of Assets } & 80.00 \
\hline \text { Interest Expense } & 22.00 \
\hline
\end{array}$

Accepted Answer

The answer of The following account balances for Bucha Corporation...

Question 10

Owners of preferred shares often do not have

Accepted Answer

A) Ownership rights to assets of the corporation 
B) Voting rights 
C) Preference to dividends 
D) The right to sell their shares 
E) Rights in liquidation 
A) Ownership rights to assets of the corporation 
B) Voting rights 
C) Preference to dividends 
D) The right to sell their shares 
E) Rights in liquidation

Question 11

Dividends represent the distribution of profits to the shareholders of a corporation.

Accepted Answer

A) True 
 B)False

Question 12

Reporting procedures are the same for private and public corporations.

Accepted Answer

A) True 
 B)False

Question 13

A privately held corporation has a limited life because it is tied to the physical lives of its owners.

Accepted Answer

A) True 
 B)False

Question 14

A dividend preference for preferred shares means that

Accepted Answer

A) Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders 
B) Preferred shareholders are guaranteed dividend 
C) Dividends are paid quarterly 
D) Only preferred shareholders will receive dividends 
E) All of these 
A) Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders 
B) Preferred shareholders are guaranteed dividend 
C) Dividends are paid quarterly 
D) Only preferred shareholders will receive dividends 
E) All of these

Question 15

Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share.The company has 15,000 common shares authorized,with 10,000 issued and outstanding.The amount of the dividend is

Accepted Answer

A) $7,500 
B) $7,125 
C) $5,625 
D) $3,750 
E) $375 
A) $7,500 
B) $7,125 
C) $5,625 
D) $3,750 
E) $375

Question 16

Shares are most commonly issued for cash.

Accepted Answer

A) True 
 B)False

Question 17

Vegas Corporation had the following shares outstanding when the board of directors declared a $95,000 cash dividend:

Accepted Answer

Allocate the dividend between the prefer

Question 18

Pam Corporation sold 10,000 common shares at $25 per share cash.The entry to record this transaction would include

Accepted Answer

A) A debit to Contributed Capital for $250,000 
B) A credit to Cash for $250,000 
C) A credit to Common Shares for $250,000 
D) A credit to Common Shares for $25,000 
E) A debit to Common Shares for $250,000 
A) A debit to Contributed Capital for $250,000 
B) A credit to Cash for $250,000 
C) A credit to Common Shares for $250,000 
D) A credit to Common Shares for $25,000 
E) A debit to Common Shares for $250,000

Question 19

Describe the components of shareholders' equity.

Accepted Answer

Shareholders' equity is composed of two

Question 20

A corporation can issue two general types of shares: common and preferred.

Accepted Answer

A) True 
 B)False

Common shares

Whenever the dividend rate on preferred shares is higher than the rate the corporation earns on its assets,the effect of issuing preferred shares is to increase the dividend rate earned by common shareholders.

Quality Cleaning Corp.issued 50 no-par-value common shares for land with a market value of $4,000.Dillon had originally issued common shares at $100 two years ago,but there is currently no market value available for their shares.The amount of contributed capital arising from this transaction is

Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called

A limited liability company is a corporation for professionals such as lawyers and accountants.

Callable preferred shares give the shareholders the option of exchanging their preferred shares into common shares at a specified rate.

Discuss the effect of the dividend preference for preferred shares.

When issuing common shares,the initial investment is credited to Common Shares.

The following account balances for Bucha Corporation are for the year ended October 31,2021.Complete an Income Statement for the year assuming the income tax rate is 20%. Revenues 3,880.00 Operating Expense 895.00 Gain on Sale of Assets 80.00 Interest Expense 22.00

Owners of preferred shares often do not have

Dividends represent the distribution of profits to the shareholders of a corporation.

Reporting procedures are the same for private and public corporations.

A privately held corporation has a limited life because it is tied to the physical lives of its owners.

A dividend preference for preferred shares means that

Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share.The company has 15,000 common shares authorized,with 10,000 issued and outstanding.The amount of the dividend is

Shares are most commonly issued for cash.

Vegas Corporation had the following shares outstanding when the board of directors declared a $95,000 cash dividend:

Pam Corporation sold 10,000 common shares at $25 per share cash.The entry to record this transaction would include

Describe the components of shareholders' equity.

A corporation can issue two general types of shares: common and preferred.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters

Exam 4: Organization and Operation of Corporations

Common shares

Whenever the dividend rate on preferred shares is higher than the rate the corporation earns on its assets,the effect of issuing preferred shares is to increase the dividend rate earned by common shareholders.

Quality Cleaning Corp.issued 50 no-par-value common shares for land with a market value of $4,000.Dillon had originally issued common shares at $100 two years ago,but there is currently no market value available for their shares.The amount of contributed capital arising from this transaction is

Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called

A limited liability company is a corporation for professionals such as lawyers and accountants.

Callable preferred shares give the shareholders the option of exchanging their preferred shares into common shares at a specified rate.

Discuss the effect of the dividend preference for preferred shares.

When issuing common shares,the initial investment is credited to Common Shares.

The following account balances for Bucha Corporation are for the year ended October 31,2021.Complete an Income Statement for the year assuming the income tax rate is 20%. Revenues 3,880.00 Operating Expense 895.00 Gain on Sale of Assets 80.00 Interest Expense 22.00

Owners of preferred shares often do not have

Dividends represent the distribution of profits to the shareholders of a corporation.

Reporting procedures are the same for private and public corporations.

A privately held corporation has a limited life because it is tied to the physical lives of its owners.

A dividend preference for preferred shares means that

Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share.The company has 15,000 common shares authorized,with 10,000 issued and outstanding.The amount of the dividend is

Shares are most commonly issued for cash.

Vegas Corporation had the following shares outstanding when the board of directors declared a $95,000 cash dividend:

Pam Corporation sold 10,000 common shares at $25 per share cash.The entry to record this transaction would include

Describe the components of shareholders' equity.

A corporation can issue two general types of shares: common and preferred.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters