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

A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

A stock split

Which of the following statements reflects the transferability of ownership rights in a corporation?

The two ways that a corporation can be classified by purpose are

A prior period adjustment that corrects income of a prior period requires that an entry be made to

Which of the following is not a significant date with respect to dividends?

If a corporation declares a dividend based upon paid-in capital, it is known as a

Start Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2015. What is the annual dividend on the preferred stock?

When the selling price of treasury stock is greater than its cost, the company credits the difference to

Arm, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2015. If the board of directors declares a $200,000 dividend, the

Which of the following represents the largest number of common shares?

Preferred stockholders generally do not have the right to vote for the board of directors.

The board of directors must assign a per share value to a stock dividend declared that is

A credit balance in retained earnings represents

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

Evergreen Manufacturing Corporation purchased 5,000 shares of its own previously issued $10 par common stock for $115,000. As a result of this event,

On the dividend record date,

The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is

A stockholders' equity statement shows

Seven thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a