Question 1

Which of the following groups of stockholders receive first priority to the receipt of a dividend?

Accepted Answer

A)  Current-dividend preference 
B)  Cumulative-dividend preference 
C)  Common 
D)  Both current-dividend preference and cumulative-dividend preference 
A)  Current-dividend preference 
B)  Cumulative-dividend preference 
C)  Common 
D)  Both current-dividend preference and cumulative-dividend preference

Question 2

Which of the following is a characteristic of the corporate form of business organization?

Accepted Answer

A)  Unlimited liability 
B)  Limited life 
C)  Ease of formation 
D)  Double taxation 
A)  Unlimited liability 
B)  Limited life 
C)  Ease of formation 
D)  Double taxation

Question 3

Pelletier Corporation has the following stock outstanding:
  
-Refer to Exhibit 11-1. Given the information above, if Pelletier pays a $108,000 dividend, and if the preferred stock is cumulative and three years' dividends are in arrears, preferred stock will receive

Accepted Answer

A)  $18,000 
B)  $24,000 
C)  $90,000 
D)  $84,000 
A)  $18,000 
B)  $24,000 
C)  $90,000 
D)  $84,000

Question 4

Identify the two types of stock that are sold by a corporation and list the characteristics of each one.

Accepted Answer

Common Sto

Question 5

The declaration of a common cash dividend

Accepted Answer

A)  Decreases a company's retained earnings balance 
B)  Decreases the par value of outstanding stock 
C)  Decreases the number of shares of outstanding stock 
D)  Decreases the amount of cash 
A)  Decreases a company's retained earnings balance 
B)  Decreases the par value of outstanding stock 
C)  Decreases the number of shares of outstanding stock 
D)  Decreases the amount of cash

Question 6

On January 1, 2012, Dkembe Corporation was authorized to issue 100,000 shares of common stock, par value $5 per share, and 20,000 shares of 5 percent cumulative preferred stock, par value $40 per share.
Prepare journal entries to record the following 2012 transactions:

Accepted Answer

The answer of On January 1, 2012, Dkembe Corporation was...

Question 7

On January 1, 2012, Georgi Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Georgi Company issued 2,000 shares of common stock (with no known market value) for land with a book value of $15,000 (market value $10,000), the entry to record the transaction would include a

Accepted Answer

A)  Debit to Land of $10,000 
B)  Credit to Common Stock of $15,000 
C)  Credit to Paid-In Capital in Excess of Par, Common Stock of $11,000 
D)  Debit to Land of $15,000 
A)  Debit to Land of $10,000 
B)  Credit to Common Stock of $15,000 
C)  Credit to Paid-In Capital in Excess of Par, Common Stock of $11,000 
D)  Debit to Land of $15,000

Question 8

The accounting records of Jackson Corporation reveal the following data:

Accepted Answer

The answer of The accounting records of Jackson Corporation reveal...

Question 9

Which form of financing allows the source of the funds to share in the wealth if the company who received the financing does well?

Accepted Answer

A)  A loan 
B)  An investment 
C)  Both a loan and an investment 
D)  Neither a loan nor an investment 
A)  A loan 
B)  An investment 
C)  Both a loan and an investment 
D)  Neither a loan nor an investment

Question 10

The investors in a corporation are called

Accepted Answer

A)  Management 
B)  Board of directors 
C)  Corporate owners 
D)  Stockholders 
A)  Management 
B)  Board of directors 
C)  Corporate owners 
D)  Stockholders

Question 11

A loss on the sale of treasury stock is recognized when treasury stock is sold at

Accepted Answer

A)  A higher price than the stock's market value 
B)  A higher price than the stock's cost 
C)  A higher price than the stock's par or stated value 
D)  None of these are correct 
A)  A higher price than the stock's market value 
B)  A higher price than the stock's cost 
C)  A higher price than the stock's par or stated value 
D)  None of these are correct

Question 12

Which of the following is NOT an important date associated with dividends?

Accepted Answer

A)  Dividend payment date 
B)  Date of information 
C)  Date of record 
D)  Declaration date 
A)  Dividend payment date 
B)  Date of information 
C)  Date of record 
D)  Declaration date

Question 13

The following information is available for Pluto Company for the year 2012:   Given this information, what is Pluto's net income for 2012?

Accepted Answer

A)  $26,500 
B)  $40,500 
C)  $37,500 
D)  $33,500 
A)  $26,500 
B)  $40,500 
C)  $37,500 
D)  $33,500

Question 14

On January 1, 2012, Georgi Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Georgi Company issued 3,000 shares of common stock for $7 per share on January 10, 2012, the entry to record the issuance of the stock would include a

Accepted Answer

A)  Debit to Cash of $6,000 
B)  Credit to Paid-In Capital in Excess of Par, Common Stock of $6,000 
C)  Credit to Common Stock of $6,000 
D)  Debit to Cash of $15,000 
A)  Debit to Cash of $6,000 
B)  Credit to Paid-In Capital in Excess of Par, Common Stock of $6,000 
C)  Credit to Common Stock of $6,000 
D)  Debit to Cash of $15,000

Question 15

Treasury stock is stock that is

Accepted Answer

A)  Authorized but not issued 
B)  Issued and outstanding 
C)  Issued but not outstanding 
D)  Authorized and outstanding 
A)  Authorized but not issued 
B)  Issued and outstanding 
C)  Issued but not outstanding 
D)  Authorized and outstanding

Question 16

Dividends declared are reported on the

Accepted Answer

A)  Income statement as an expense 
B)  Balance sheet as an asset 
C)  Statement of retained earnings 
D)  Income statement as a revenue 
A)  Income statement as an expense 
B)  Balance sheet as an asset 
C)  Statement of retained earnings 
D)  Income statement as a revenue

Question 17

Halsey Corporation first issued stock on January 1, 2010. Halsey has the following stock outstanding on December 31, 2013:
  
Halsey Corporation paid cash dividends as follows:
   
Calculate the total cash dividends received by preferred and common stockholders during the years of 2010-2013.

Accepted Answer

Halsey Corporation paid cash d

Question 18

Which of the following is NOT a step that must be taken when starting a corporation that will operate across state lines?

Accepted Answer

A)  Apply to the appropriate state official for a charter 
B)  Sell shares of stock in an initial public offering 
C)  Apply for a charter with the Securities and Exchange Commission 
D)  Provide a prospectus to each potential investor 
A)  Apply to the appropriate state official for a charter 
B)  Sell shares of stock in an initial public offering 
C)  Apply for a charter with the Securities and Exchange Commission 
D)  Provide a prospectus to each potential investor

Question 19

Which of the following is NOT a component of comprehensive income?

Accepted Answer

A)  Net income 
B)  Foreign currency translation adjustment 
C)  Unrealized gains and losses on available-for-sale securities 
D)  Treasury stock 
A)  Net income 
B)  Foreign currency translation adjustment 
C)  Unrealized gains and losses on available-for-sale securities 
D)  Treasury stock

Question 20

Which of the following is a characteristic of corporations?

Accepted Answer

A)  They pay taxes on their profits. 
B)  They provide their investors with no liability. 
C)  A change in ownership usually affects the corporation's legal and economic status. 
D)  In case of bankruptcy, stockholders receive corporate assets before the claims of debt holders are satisfied. 
A)  They pay taxes on their profits. 
B)  They provide their investors with no liability. 
C)  A change in ownership usually affects the corporation's legal and economic status. 
D)  In case of bankruptcy, stockholders receive corporate assets before the claims of debt holders are satisfied.

Exam 11: Financing: Equity

Which of the following groups of stockholders receive first priority to the receipt of a dividend?

Which of the following is a characteristic of the corporate form of business organization?

Pelletier Corporation has the following stock outstanding: -Refer to Exhibit 11-1. Given the information above, if Pelletier pays a $108,000 dividend, and if the preferred stock is cumulative and three years' dividends are in arrears, preferred stock will receive

Identify the two types of stock that are sold by a corporation and list the characteristics of each one.

The declaration of a common cash dividend

On January 1, 2012, Dkembe Corporation was authorized to issue 100,000 shares of common stock, par value $5 per share, and 20,000 shares of 5 percent cumulative preferred stock, par value $40 per share. Prepare journal entries to record the following 2012 transactions:

The accounting records of Jackson Corporation reveal the following data:

Which form of financing allows the source of the funds to share in the wealth if the company who received the financing does well?

The investors in a corporation are called

A loss on the sale of treasury stock is recognized when treasury stock is sold at

Which of the following is NOT an important date associated with dividends?

The following information is available for Pluto Company for the year 2012: Given this information, what is Pluto's net income for 2012?

Treasury stock is stock that is

Dividends declared are reported on the

Halsey Corporation first issued stock on January 1, 2010. Halsey has the following stock outstanding on December 31, 2013: Halsey Corporation paid cash dividends as follows: Calculate the total cash dividends received by preferred and common stockholders during the years of 2010-2013.

Which of the following is NOT a step that must be taken when starting a corporation that will operate across state lines?

Which of the following is NOT a component of comprehensive income?

Which of the following is a characteristic of corporations?

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

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