Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 stock 
A)  treasury stock 
B)  issued stock 
C)  outstanding stock 
D)  authorized stock

Question 3

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 ownership 
A)  mutual agency for stockholders 
B)  unlimited liability for stockholders 
C)  corporations are subject to more governmental regulations 
D)  the ease of transfer of ownership

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, $4,000 
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, $4,000

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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)  $48,800 
A)  $12,800 
B)  $19,200 
C)  $32,000 
D)  $48,800

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

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

A disadvantage of the corporate form of business entity is

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

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

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters

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

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

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

A disadvantage of the corporate form of business entity is

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

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

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters