Question 1

The excess of issue price over par of common stock is termed a(n)

Accepted Answer

A)  discount 
B)  income 
C)  deficit 
D)  premium 
A)  discount 
B)  income 
C)  deficit 
D)  premium

Question 2

Prepare entries to record the following selected transactions completed during the current fiscal year:

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 3

Match between columns
                        Premises:  a company whose shares can be bought and sold on a stock exchange
 creditors cannot pursue stockholder’s personal assets to satisfy claims
 rules and procedures for corporate conduct of its affairs
 formally creates a corporation
 company whose shares are not bought or sold on a stock exchange
 responsible for establishing corporate policies
 a legal entity, separate from the people who create and operate it
 earnings of a company distributed to stockholders

Accepted Answer

The Answer of corporation and publicly held corporation and bylaws is...

Question 4

A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

Accepted Answer

A)  $7.00 
B)  $112.00 
C)  $37.50 
D)  $600.00 
A)  $7.00 
B)  $112.00 
C)  $37.50 
D)  $600.00

Question 5

When no-par stock is issued, the Common Stock account is credited for the selling price of the stock issued.

Accepted Answer

A) True 
 B)False

Question 6

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.

Accepted Answer

A) True 
 B)False

Question 7

The date on which a cash dividend becomes a binding legal obligation is on the

Accepted Answer

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

Question 8

Sabas Company has 20,000 shares of $100 par, 1% non-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 each year.

Accepted Answer

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Question 9

Stockholders' equity

Accepted Answer

A)  is usually equal to cash on hand 
B)  includes paid-in capital and liabilities 
C)  includes retained earnings and paid-in capital 
D)  is shown on the income statement 
A)  is usually equal to cash on hand 
B)  includes paid-in capital and liabilities 
C)  includes retained earnings and paid-in capital 
D)  is shown on the income statement

Question 10

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Accepted Answer

A)  Retained Earnings 
B)  Treasury Stock 
C)  Organizational Expenses 
D)  Common Stock 
A)  Retained Earnings 
B)  Treasury Stock 
C)  Organizational Expenses 
D)  Common Stock

Question 11

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

The excess of issue price over par of common stock is termed a(n)

Prepare entries to record the following selected transactions completed during the current fiscal year:

A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

When no-par stock is issued, the Common Stock account is credited for the selling price of the stock issued.

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.

The date on which a cash dividend becomes a binding legal obligation is on the

Sabas Company has 20,000 shares of $100 par, 1% non-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 each year.

Stockholders' equity

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

A disadvantage of the corporate form of business entity is

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 excess of issue price over par of common stock is termed a(n)

Prepare entries to record the following selected transactions completed during the current fiscal year:

A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

When no-par stock is issued, the Common Stock account is credited for the selling price of the stock issued.

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.

The date on which a cash dividend becomes a binding legal obligation is on the

Sabas Company has 20,000 shares of $100 par, 1% non-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 each year.

Stockholders' equity

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

A disadvantage of the corporate form of business entity is

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

Filters