Question 1

An underwriter keeps shareholder records and prepares official lists of shareholders and dividend payments.

Accepted Answer

A) True 
 B)False  False

Question 2

Special rights for preferred shares may include a preference in receiving dividends and in the distribution of assets if the corporation is liquidated.

Accepted Answer

A) True 
 B)False  True

Question 3

The total amount of cash and other assets received by a corporation from its shareholders in exchange for common shares is included in:

Accepted Answer

A)  Organization costs. 
B)  Private held shares. 
C)  Contributed capital. 
D)  Retained earnings. 
E)  Equity. 
A)  Organization costs. 
B)  Private held shares. 
C)  Contributed capital. 
D)  Retained earnings. 
E)  Equity. C

Question 4

The two main areas of the equity section of a corporation's balance sheet are share capital and retained earnings.

Accepted Answer

A) True 
 B)False

Question 5

When a corporation issues only one class of shares they are:

Accepted Answer

A)  Special shares. 
B)  Preferred shares. 
C)  Common shares. 
D)  Private shares. 
E)  Public shares. 
A)  Special shares. 
B)  Preferred shares. 
C)  Common shares. 
D)  Private shares. 
E)  Public shares.

Question 6

_______________ have special rights that give them priority or senior status over common shares in one or more areas.

Accepted Answer

The answer of _______________ have special rights that give them...

Question 7

During 2015,Moore Corporation had Revenues of $525,000 and Expenses of $423,000 and declared cash dividends of $22,000.Retained Earnings on January 1,2015 was $210,000.
1.Prepare closing entries on December 31,2015.
2.Calculate the balance in Retained Earnings on December 31,2015.

Accepted Answer

The answer of During 2015,Moore Corporation had Revenues of $525,000...

Question 8

On August 1,Gary Corporation issued 20,000 common shares in exchange for land with a fair market value of $205,000.Prepare the journal entry to record the transaction.

Accepted Answer

The answer of On August 1,Gary Corporation issued 20,000 common...

Question 9

Corporations can be either public or limited.

Accepted Answer

A) True 
 B)False

Question 10

Whether a business is organized as a corporation or as a proprietorship,the net income reported on the income statement will be the same.

Accepted Answer

A) True 
 B)False

Question 11

If a corporation is authorized to issue 1,000 preferred shares,which have a current market value of $80 per share,it has $80,000 worth of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 12

Common shares:

Accepted Answer

A)  Represent residual equity in a corporation. 
B)  Always represent total contributed capital. 
C)  Allow shareholders to bind the corporation to contracts because they share in ownership. 
D)  Make shareholders liable for acts of the corporation because they share in ownership. 
E)  Are usually redeemablE. 
A)  Represent residual equity in a corporation. 
B)  Always represent total contributed capital. 
C)  Allow shareholders to bind the corporation to contracts because they share in ownership. 
D)  Make shareholders liable for acts of the corporation because they share in ownership. 
E)  Are usually redeemablE.

Question 13

The total amount of shares that a corporation's charter allows it to issue is:

Accepted Answer

A)  Authorized. 
B)  Issued. 
C)  Outstanding. 
D)  Common. 
E)  Preferred. 
A)  Authorized. 
B)  Issued. 
C)  Outstanding. 
D)  Common. 
E)  Preferred.

Question 14

The achievement of an increased return on common shares by paying dividends on preferred shares or interest at a rate that is less than the rate of return earned with the assets invested in the corporation by the preferred shareholders or creditors is called:

Accepted Answer

A)  Financial leverage. 
B)  Contributed capital. 
C)  No par value. 
D)  Preemptive right. 
E)  Capital gain. 
A)  Financial leverage. 
B)  Contributed capital. 
C)  No par value. 
D)  Preemptive right. 
E)  Capital gain.

Question 15

The following account balances for Katherine Corporation are for the year ended October 31,2015.Complete an Income Statement for the year assuming the income tax rate is 20%.

Accepted Answer

The answer of The following account balances for Katherine Corporation...

Question 16

A preferred share on which the right to receive dividends is lost for any year that the dividends are not declared is a:

Accepted Answer

A)  Participating preferred share. 
B)  Callable preferred share. 
C)  Cumulative preferred share. 
D)  Convertible preferred share. 
E)  Noncumulative preferred sharE. 
A)  Participating preferred share. 
B)  Callable preferred share. 
C)  Cumulative preferred share. 
D)  Convertible preferred share. 
E)  Noncumulative preferred sharE.

Question 17

The main differences between net income reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

Accepted Answer

A) True 
 B)False

Question 18

A corporation is a legal entity separate from its owners.

Accepted Answer

A) True 
 B)False

Question 19

Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share.The company has 15,000 common shares authorized,with 10,000 issued and outstanding.The amount of the dividend is:

Accepted Answer

A)  $7,500. 
B)  $7,125. 
C)  $5,625. 
D)  $3,750. 
E)  $375. 
A)  $7,500. 
B)  $7,125. 
C)  $5,625. 
D)  $3,750. 
E)  $375.

Question 20

Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called:

Accepted Answer

A)  Convertible preferred shares. 
B)  Callable preferred shares. 
C)  Private shares. 
D)  Cumulative preferred shares. 
E)  Participating preferred shares. 
A)  Convertible preferred shares. 
B)  Callable preferred shares. 
C)  Private shares. 
D)  Cumulative preferred shares. 
E)  Participating preferred shares.

An underwriter keeps shareholder records and prepares official lists of shareholders and dividend payments.

Special rights for preferred shares may include a preference in receiving dividends and in the distribution of assets if the corporation is liquidated.

The total amount of cash and other assets received by a corporation from its shareholders in exchange for common shares is included in:

The two main areas of the equity section of a corporation's balance sheet are share capital and retained earnings.

When a corporation issues only one class of shares they are:

_______________ have special rights that give them priority or senior status over common shares in one or more areas.

During 2015,Moore Corporation had Revenues of $525,000 and Expenses of $423,000 and declared cash dividends of $22,000.Retained Earnings on January 1,2015 was $210,000. 1.Prepare closing entries on December 31,2015. 2.Calculate the balance in Retained Earnings on December 31,2015.

On August 1,Gary Corporation issued 20,000 common shares in exchange for land with a fair market value of $205,000.Prepare the journal entry to record the transaction.

Corporations can be either public or limited.

Whether a business is organized as a corporation or as a proprietorship,the net income reported on the income statement will be the same.

If a corporation is authorized to issue 1,000 preferred shares,which have a current market value of $80 per share,it has $80,000 worth of shares outstanding.

Common shares:

The total amount of shares that a corporation's charter allows it to issue is:

The achievement of an increased return on common shares by paying dividends on preferred shares or interest at a rate that is less than the rate of return earned with the assets invested in the corporation by the preferred shareholders or creditors is called:

The following account balances for Katherine Corporation are for the year ended October 31,2015.Complete an Income Statement for the year assuming the income tax rate is 20%.

A preferred share on which the right to receive dividends is lost for any year that the dividends are not declared is a:

The main differences between net income reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

A corporation is a legal entity separate from its owners.

Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share.The company has 15,000 common shares authorized,with 10,000 issued and outstanding.The amount of the dividend is:

Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called:

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters

Exam 13: Organization and Operation of Corporations

An underwriter keeps shareholder records and prepares official lists of shareholders and dividend payments.

Special rights for preferred shares may include a preference in receiving dividends and in the distribution of assets if the corporation is liquidated.

The total amount of cash and other assets received by a corporation from its shareholders in exchange for common shares is included in:

The two main areas of the equity section of a corporation's balance sheet are share capital and retained earnings.

When a corporation issues only one class of shares they are:

_______________ have special rights that give them priority or senior status over common shares in one or more areas.

During 2015,Moore Corporation had Revenues of $525,000 and Expenses of $423,000 and declared cash dividends of $22,000.Retained Earnings on January 1,2015 was $210,000. 1.Prepare closing entries on December 31,2015. 2.Calculate the balance in Retained Earnings on December 31,2015.

On August 1,Gary Corporation issued 20,000 common shares in exchange for land with a fair market value of $205,000.Prepare the journal entry to record the transaction.

Corporations can be either public or limited.

Whether a business is organized as a corporation or as a proprietorship,the net income reported on the income statement will be the same.

If a corporation is authorized to issue 1,000 preferred shares,which have a current market value of $80 per share,it has $80,000 worth of shares outstanding.

Common shares:

The total amount of shares that a corporation's charter allows it to issue is:

The achievement of an increased return on common shares by paying dividends on preferred shares or interest at a rate that is less than the rate of return earned with the assets invested in the corporation by the preferred shareholders or creditors is called:

The following account balances for Katherine Corporation are for the year ended October 31,2015.Complete an Income Statement for the year assuming the income tax rate is 20%.

A preferred share on which the right to receive dividends is lost for any year that the dividends are not declared is a:

The main differences between net income reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

A corporation is a legal entity separate from its owners.

Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share.The company has 15,000 common shares authorized,with 10,000 issued and outstanding.The amount of the dividend is:

Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called:

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters