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

A corporation acts under its own name rather than in the name of its stockholders.

The declaration and distribution of a stock dividend will

If Keene Company issues 9,000 shares of $5 par value common stock for $160,000, the account

Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par noncumulative preferred stock. In 2014, Core declared and paid dividends of $4,000. In 2015, Core declared and paid dividends of $12,000. How much of the 2015 dividend was distributed to preferred shareholders?

If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000,

A corporation can issue more shares than it is authorized in its charter, if the board of directors approves of an increase in the number of authorized shares.

A stockholder has the right to vote in the election of the board of directors.

Which of the following statements about retained earnings restrictions is incorrect?

A prior period adjustment for understatement of net income will

A dividend based on paid-in capital is termed a liquidating dividend.

Reserves include each of the following except

Additional paid-in capital includes all of the following except the amounts paid in

At December 31, the stockholders' equity of Smith Company was as follow: The book value per share of common stock is

Each of the following is reported for common stock except the

Barton Company is a publicly held corporation whose $1 par value stock is actively traded at $31 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $100,000. When recording this transaction, Barton Company will

The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.

The sale of common stock below par

If a stockholder cannot attend a stockholder's meeting, he may delegate his voting rights by means of

Assume that all balance sheet amounts for Marley Company represent average balance figures. What is the return on common stockholders' equity ratio for Marley?

A retained earnings statement shows the same information as a corporation income statement.