Question 1

The par value of stock is an arbitrary per share amount defined in many states as legal capital.

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

Treasury stock shares are

Accepted Answer

A)  shares held by the U.S. Treasury Department 
B)  part of the total outstanding shares but not part of the total issued shares of a corporation 
C)  unissued shares that are held by the treasurer of the corporation 
D)  issued shares that have been reacquired by a corporation 
A)  shares held by the U.S. Treasury Department 
B)  part of the total outstanding shares but not part of the total issued shares of a corporation 
C)  unissued shares that are held by the treasurer of the corporation 
D)  issued shares that have been reacquired by a corporation

Question 4

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 5

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:   Determine the dividends per share for preferred and common stock for the first year.

Accepted Answer

A)  $0.50 and $0.10 
B)  $0.00 and $0.10 
C)  $0.50 and $0.00 
D)  $2.00 and $0.00 
A)  $0.50 and $0.10 
B)  $0.00 and $0.10 
C)  $0.50 and $0.00 
D)  $2.00 and $0.00

Question 6

Match between columns
                        Premises: authorized shares
preferred stock
common stock
par value
outstanding shares
issued shares
additional paid in capital
market price

Accepted Answer

The Answer of account used when issue price exceeds par is...

Question 7

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported in the income statement.

Accepted Answer

A) True 
 B)False

Question 8

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

Accepted Answer

A) True 
 B)False

Question 9

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

Accepted Answer

A) True 
 B)False

Question 10

A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be:

Accepted Answer

A)  60,000 
B)  10,000 
C)  300,000 
D)  30,000 
A)  60,000 
B)  10,000 
C)  300,000 
D)  30,000

Question 11

The liability for a dividend is recorded on which of the following dates?

Accepted Answer

A)  the date of record 
B)  the date of payment 
C)  the last day of the fiscal year 
D)  the date of declaration 
A)  the date of record 
B)  the date of payment 
C)  the last day of the fiscal year 
D)  the date of declaration

Question 12

Organizational expenses are classified as intangible assets on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder.

Accepted Answer

A) True 
 B)False

Question 14

Miriah Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?

Accepted Answer

A)  $50 per share 
B)  $50,000 in total 
C)  $10,000 in total 
D)  $0.50 per share 
A)  $50 per share 
B)  $50,000 in total 
C)  $10,000 in total 
D)  $0.50 per share

Question 15

The par value of common stock must always be equal to its market value on the date the stock is issued.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is not true about a 2-for-1 split?

Accepted Answer

A)  Par value per share is reduced to half of what it was before the split. 
B)  Total contributed capital increases. 
C)  The market price will probably decrease. 
D)  A stockholder with ten shares before the split owns twenty shares after the split. 
A)  Par value per share is reduced to half of what it was before the split. 
B)  Total contributed capital increases. 
C)  The market price will probably decrease. 
D)  A stockholder with ten shares before the split owns twenty shares after the split.

Question 17

Match between columns
                        Premises:  distribution of a company’s earnings to stockholders
 equity account reflecting shares “owed” to stockholders
 account used when shares are issued for an amount greater than par value
 when dividends are actually distributed to stockholders
 Shares of common stock re-acquired by a company
 entitled to receive dividends first
 this event creates a liability to company

Accepted Answer

The Answer of stock dividends distributable and treasury stock and is...

Question 18

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Accepted Answer

A)  $ 60,000 
B)  $ 20,000 
C)  $120,000 
D)  $100,000 
A)  $ 60,000 
B)  $ 20,000 
C)  $120,000 
D)  $100,000

Question 19

When a corporation issues stock at a premium, it reports the premium as an other income item on the income statement.

Accepted Answer

A) True 
 B)False

Question 20

If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.

Accepted Answer

A) True 
 B)False

The par value of stock is an arbitrary per share amount defined in many states as legal capital.

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

Treasury stock shares are

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the first year.

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported in the income statement.

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be:

The liability for a dividend is recorded on which of the following dates?

Organizational expenses are classified as intangible assets on the balance sheet.

The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder.

Miriah Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?

The par value of common stock must always be equal to its market value on the date the stock is issued.

Which of the following statements is not true about a 2-for-1 split?

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

When a corporation issues stock at a premium, it reports the premium as an other income item on the income statement.

If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 13: Corporations: Organization, Stock Transactions, and Dividends

The par value of stock is an arbitrary per share amount defined in many states as legal capital.

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

Treasury stock shares are

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the first year.

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported in the income statement.

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be:

The liability for a dividend is recorded on which of the following dates?

Organizational expenses are classified as intangible assets on the balance sheet.

The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder.

Miriah Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?

The par value of common stock must always be equal to its market value on the date the stock is issued.

Which of the following statements is not true about a 2-for-1 split?

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

When a corporation issues stock at a premium, it reports the premium as an other income item on the income statement.

If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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