Exam 12: Corporations: Paid-In Capital and the Balance Sheet

Which of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation?

A company had $80,000 of Sales revenue and $75,000 of Expenses. Which of the following would be the third of three year-end closing entries? (Assume no dividends were paid.)

Which of the following statements describes the corporate characteristic termed double taxation?

Which of the following is an advantage of preferred stock?

Please refer to the equity section of the balance sheet shown below: The amount shown for Retained earnings would be called a(n):

If a company has a strong rate of return on common stockholders' equity, that is an indication of strong profitability.

The rate of return on total assets and the rate of return on common stockholders' equity are used to evaluate the:

Which of the following statements describes the corporate characteristic termed limited liability?

Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold at $25 per share. The journal entry for this transaction would:

When a company records the year-end closing entries, the first step is to close the Revenues to Retained earnings.

Please refer to the equity section of the balance sheet, below: Preferred stock, \ 50 par, 4\% , cumulative \ 5,000 1,000 shares authorized, 100 shares outstanding Common stock, \ 0.01 par 120 1,000,000 shares authorized, 12,000 shares outstanding Paid-in capital in exces of par 359,600 Retained earnings 153,280 Total stockholders' equity \ 518,000 - Assume there are no dividends in arrears. What is the book value per share of common stock?

Which of the following occurs when a previously declared dividend is paid?

Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value. On October 15, 2014, the company declares a total dividend payment of $40,000. -How much dividend will be paid to the preferred shareholders?

Different classes and types of stock carry different degrees of risk for the shareholder.

Which of the following shows the relationship between net income available to common shareholders and average common equity?

Which of the following occurs when a dividend is declared?

Which of the following is the correct order of accounts in the stockholders' equity section of the balance sheet? (Assume preferred stock is issued at par.)

Ajax Company was founded in 2012. Its yearly earnings are shown here: 2012: Net income of $4,000 2013: Net income of $23,000 2014: Net income of $2,000 2015: Net loss of $30,000 No dividends were paid. At the end of the year 2015, what amount would be shown on the balance sheet for Retained earnings?

Hot Tamale Company had $120,000 of revenues and $113,000 of expenses. No dividends were paid. These factors will result in which of the following?

Hot Tamale Company had $120,000 of revenues and $125,000 of expenses. No dividends were paid. The first of the year-end closing entries should include which of the following line items?