Question 1

The issue price of the stock usually is equal to the par value of the stock.

Accepted Answer

A) True 
 B)False  False

Question 2

Common Stock is most often listed after Additional Paid-in Capital in the Stockholders' Equity section of the Balance Sheet.

Accepted Answer

A) True 
 B)False  False

Question 3

Caesar Corporation has 250,000 shares of $7-par common stock outstanding.They have declared a 7% stock dividend.The current market price of the common stock is $11/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

Accepted Answer

A) $122,500. 
B) $192,500. 
C) $70,000. 
D) $315,000. 
A) $122,500. 
B) $192,500. 
C) $70,000. 
D) $315,000. C

Question 4

If there is only one class of stock outstanding,such stock would be classified as:

Accepted Answer

A) authorized stock. 
B) common stock. 
C) preferred stock. 
D) issued stock. 
A) authorized stock. 
B) common stock. 
C) preferred stock. 
D) issued stock.

Question 5

Earnings that a stockholder receives from a corporation is an example of which stockholder right?

Accepted Answer

A) Vote 
B) Dividends 
C) Liquidation 
D) Preemption 
A) Vote 
B) Dividends 
C) Liquidation 
D) Preemption

Question 6

The Wellington Winery's Stockholders' Equity section includes the following information:
 
What was the total selling price of the preferred stock?

Accepted Answer

A) $12,000 
B) $14,700 
C) $16,100 
D) $20,200 
A) $12,000 
B) $14,700 
C) $16,100 
D) $20,200

Question 7

If a company has 3,000 shares authorized and 2,000 have been issued,the annual dividends on $18 par 3% preferred stock is $1,620.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are considered to be legal entities that exist separate and distinct from their owners?

Accepted Answer

A) Sole proprietorships 
B) Partnerships 
C) Corporations 
D) Organizations with more than 100 partners 
A) Sole proprietorships 
B) Partnerships 
C) Corporations 
D) Organizations with more than 100 partners

Question 9

A company has 25,000 shares of $12 par,8% preferred stock.The 8% refers to the stock's:

Accepted Answer

A) market rate. 
B) dividend rate. 
C) paid-in capital rate. 
D) interest rate. 
A) market rate. 
B) dividend rate. 
C) paid-in capital rate. 
D) interest rate.

Question 10

At least one "class" of stock MUST have:

Accepted Answer

A) preemptive rights. 
B) dividend rights. 
C) liquidation rights. 
D) voting rights. 
A) preemptive rights. 
B) dividend rights. 
C) liquidation rights. 
D) voting rights.

Question 11

Authorized capital stock are those shares:

Accepted Answer

A) listed in the charter. 
B) issued to the corporation's officers. 
C) sold and in stockholder possession. 
D) that pay dividends. 
A) listed in the charter. 
B) issued to the corporation's officers. 
C) sold and in stockholder possession. 
D) that pay dividends.

Question 12

A journal entry for the sale of $10 par-common stock for $18 per share would include a:

Accepted Answer

A) credit to Cash. 
B) debit to Common Stock. 
C) credit to Paid-In Capital in Excess of Par-Common Stock. 
D) debit to Paid-In Capital in Excess of Par-Common Stock. 
A) credit to Cash. 
B) debit to Common Stock. 
C) credit to Paid-In Capital in Excess of Par-Common Stock. 
D) debit to Paid-In Capital in Excess of Par-Common Stock.

Question 13

The formula needed to compute "additional paid-in capital in excess of par" is:

Accepted Answer

A) number of shares of stock times par value per share of stock. 
B) number of shares of stock times selling price per share of stock. 
C) number of shares of stock times (selling price per share - par value per share). 
D) number of shares of stock times (selling price per share + par value per share). 
A) number of shares of stock times par value per share of stock. 
B) number of shares of stock times selling price per share of stock. 
C) number of shares of stock times (selling price per share - par value per share). 
D) number of shares of stock times (selling price per share + par value per share).

Question 14

A company issues 50,000 shares of its $8 par common stock for $15 per share.The amount to be debited to Cash is:

Accepted Answer

A) $50,000. 
B) $400,000. 
C) $350,000. 
D) $750,000. 
A) $50,000. 
B) $400,000. 
C) $350,000. 
D) $750,000.

Question 15

A stock dividend may be given to reduce the market price of the stock.

Accepted Answer

A) True 
 B)False

Question 16

The denominator in calculating return on equity is average common Stockholders' Equity.

Accepted Answer

A) True 
 B)False

Question 17

Payment of a cash dividend causes a(n):

Accepted Answer

A) increase in liabilities. 
B) decrease in an assets. 
C) increase in Stockholders' Equity. 
D) increase in revenue. 
A) increase in liabilities. 
B) decrease in an assets. 
C) increase in Stockholders' Equity. 
D) increase in revenue.

Question 18

S&C,Inc.has 400,000 shares of $10-par common stock outstanding.They have declared a 5% stock dividend.The current market price of the common stock is $18/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

Accepted Answer

A) $560,000. 
B) $160,000. 
C) $200,000. 
D) $360,000. 
A) $560,000. 
B) $160,000. 
C) $200,000. 
D) $360,000.

Question 19

A company can have a profit or loss when buying or selling its own stock.

Accepted Answer

A) True 
 B)False

Question 20

Changes in ownership through transfer of shares of stock have no effect on the life of a corporation.

Accepted Answer

A) True 
 B)False

The issue price of the stock usually is equal to the par value of the stock.

Common Stock is most often listed after Additional Paid-in Capital in the Stockholders' Equity section of the Balance Sheet.

Caesar Corporation has 250,000 shares of $7-par common stock outstanding.They have declared a 7% stock dividend.The current market price of the common stock is $11/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

If there is only one class of stock outstanding,such stock would be classified as:

Earnings that a stockholder receives from a corporation is an example of which stockholder right?

The Wellington Winery's Stockholders' Equity section includes the following information: What was the total selling price of the preferred stock?

If a company has 3,000 shares authorized and 2,000 have been issued,the annual dividends on $18 par 3% preferred stock is $1,620.

Which of the following are considered to be legal entities that exist separate and distinct from their owners?

A company has 25,000 shares of $12 par,8% preferred stock.The 8% refers to the stock's:

At least one "class" of stock MUST have:

Authorized capital stock are those shares:

A journal entry for the sale of $10 par-common stock for $18 per share would include a:

The formula needed to compute "additional paid-in capital in excess of par" is:

A company issues 50,000 shares of its $8 par common stock for $15 per share.The amount to be debited to Cash is:

A stock dividend may be given to reduce the market price of the stock.

The denominator in calculating return on equity is average common Stockholders' Equity.

Payment of a cash dividend causes a(n):

S&C,Inc.has 400,000 shares of $10-par common stock outstanding.They have declared a 5% stock dividend.The current market price of the common stock is $18/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

A company can have a profit or loss when buying or selling its own stock.

Changes in ownership through transfer of shares of stock have no effect on the life of a corporation.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

The Statement of Cash Flows

Financial Statement Analysis

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Exam 10: Corporations: Paid-In Capital and Retained Earnings

The issue price of the stock usually is equal to the par value of the stock.

Common Stock is most often listed after Additional Paid-in Capital in the Stockholders' Equity section of the Balance Sheet.

Caesar Corporation has 250,000 shares of $7-par common stock outstanding.They have declared a 7% stock dividend.The current market price of the common stock is $11/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

If there is only one class of stock outstanding,such stock would be classified as:

Earnings that a stockholder receives from a corporation is an example of which stockholder right?

The Wellington Winery's Stockholders' Equity section includes the following information: What was the total selling price of the preferred stock?

If a company has 3,000 shares authorized and 2,000 have been issued,the annual dividends on $18 par 3% preferred stock is $1,620.

Which of the following are considered to be legal entities that exist separate and distinct from their owners?

A company has 25,000 shares of $12 par,8% preferred stock.The 8% refers to the stock's:

At least one "class" of stock MUST have:

Authorized capital stock are those shares:

A journal entry for the sale of $10 par-common stock for $18 per share would include a:

The formula needed to compute "additional paid-in capital in excess of par" is:

A company issues 50,000 shares of its $8 par common stock for $15 per share.The amount to be debited to Cash is:

A stock dividend may be given to reduce the market price of the stock.

The denominator in calculating return on equity is average common Stockholders' Equity.

Payment of a cash dividend causes a(n):

S&C,Inc.has 400,000 shares of $10-par common stock outstanding.They have declared a 5% stock dividend.The current market price of the common stock is $18/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

A company can have a profit or loss when buying or selling its own stock.

Changes in ownership through transfer of shares of stock have no effect on the life of a corporation.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

The Statement of Cash Flows

Financial Statement Analysis

Filters