Question 1

The day on which the board of directors of the corporation distributes a dividend is called the declaration date.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The ability of a corporation to obtain capital is

Accepted Answer

A)  less than the ability of a partnership 
B)  about the same as the ability of a partnership 
C)  restricted because of the limited life of the corporation 
D)  enhanced because of limited liability and ease of share transferability 
A)  less than the ability of a partnership 
B)  about the same as the ability of a partnership 
C)  restricted because of the limited life of the corporation 
D)  enhanced because of limited liability and ease of share transferability

Question 4

The par value of common stock must always be equal to its market value on the date the stock is issued.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a right possessed by common stockholders of a corporation?

Accepted Answer

A)  the right to vote in the election of the board of directors 
B)  the right to receive a minimum amount of dividends 
C)  the right to sell their stock to anyone they choose 
D)  the right to share in assets upon liquidation 
A)  the right to vote in the election of the board of directors 
B)  the right to receive a minimum amount of dividends 
C)  the right to sell their stock to anyone they choose 
D)  the right to share in assets upon liquidation

Question 6

Oregon,Inc.reported net income of $105,000.During the current year,the company had 5,000 shares of $100 par,5% preferred stock and 10,000 of $5 par common stock outstanding.The company declared and paid all preferred dividends.Oregon's earnings per share is

Accepted Answer

A)  $8.00 
B)  $18.00 
C)  $5.08 
D)  $5.00 
A)  $8.00 
B)  $18.00 
C)  $5.08 
D)  $5.00

Question 7

When a corporation completes a 3-for-1 stock split

Accepted Answer

A)  the ownership interest of current stockholders is decreased 
B)  the market price per share of the stock is decreased 
C)  the par value per share is decreased 
D)  the market price per share of the stock and the par value per share is decreased 
A)  the ownership interest of current stockholders is decreased 
B)  the market price per share of the stock is decreased 
C)  the par value per share is decreased 
D)  the market price per share of the stock and the par value per share is decreased

Question 8

Vincent Corporation has 100,000 shares of $100 par common stock outstanding.On June 30,Vincent Corporation declared a 5% stock dividend to be issued on July 30 to stockholders of record July 15.The market price of the stock was $132 a share on June 30.Journalize the entries required on June 30,July 15,and July 30.

Accepted Answer

The answer of Vincent Corporation has 100,000 shares of $100...

Question 9

Under the corporate form of business organization,

Accepted Answer

A)  ownership rights are easily transferred 
B)  a stockholder is personally liable for the debts of the corporation 
C)  corporations are not subject to the Sarbanes-Oxley Act 
D)  stockholders wishing to sell their corporate shares must get the approval of other stockholders 
A)  ownership rights are easily transferred 
B)  a stockholder is personally liable for the debts of the corporation 
C)  corporations are not subject to the Sarbanes-Oxley Act 
D)  stockholders wishing to sell their corporate shares must get the approval of other stockholders

Question 10

For accounting purposes,stated value is treated the same way as par value.

Accepted Answer

A) True 
 B)False

Question 11

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

Accepted Answer

A)  Organizational Expenses 
B)  Goodwill 
C)  Common Stock 
D)  Cash 
A)  Organizational Expenses 
B)  Goodwill 
C)  Common Stock 
D)  Cash

Question 12

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share.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 13

Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credit(s)are made to

Accepted Answer

A)  Common Stock,$14,000 
B)  Common Stock,$10,000,and Paid-In Capital in Excess of Par,$4,000 
C)  Common Stock,$4,000,and Paid-In Capital in Excess of Stated Value,$10,000 
D)  Common Stock,$10,000,and Retained Earnings,$4,000 
A)  Common Stock,$14,000 
B)  Common Stock,$10,000,and Paid-In Capital in Excess of Par,$4,000 
C)  Common Stock,$4,000,and Paid-In Capital in Excess of Stated Value,$10,000 
D)  Common Stock,$10,000,and Retained Earnings,$4,000

Question 14

On January 1,Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding.All 40,000 shares had been issued in a prior period at $20.00 per share.On February 1,Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. ​
The journal entry to record the purchase of the treasury shares on February 1 would include a

Accepted Answer

A)  ​credit to Treasury Stock for $90,000 
B)  ​debit to Treasury Stock for $90,000 
C)  ​debit to a loss account for $112,500 
D)  ​credit to a gain account for $112,500 
A)  ​credit to Treasury Stock for $90,000 
B)  ​debit to Treasury Stock for $90,000 
C)  ​debit to a loss account for $112,500 
D)  ​credit to a gain account for $112,500

Question 15

Match the following stockholders' equity concepts to the appropriate term (a-h).​
-Shares of common stock that were issued and then reacquired by a company

Accepted Answer

A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par
   
A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par

Question 16

If 20,000 shares are authorized,15,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $15,000.

Accepted Answer

A) True 
 B)False

Question 17

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

Accepted Answer

A)  increase by $100,000 
B)  increase by $350,000 
C)  decrease by $100,000 
D)  decrease by $350,000 
A)  increase by $100,000 
B)  increase by $350,000 
C)  decrease by $100,000 
D)  decrease by $350,000

Question 18

How is treasury stock shown on the balance sheet?

Accepted Answer

A)  as an asset 
B)  as a decrease in stockholders' equity 
C)  as an increase in stockholders' equity 
D)  treasury stock is not shown on the balance sheet 
A)  as an asset 
B)  as a decrease in stockholders' equity 
C)  as an increase in stockholders' equity 
D)  treasury stock is not shown on the balance sheet

Question 19

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 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

The answer of Macy Company has 10,000 shares of 2%...

Question 20

Treasury stock shares are

Accepted Answer

A)  shares held by the U.S.Treasury Department 
B)  part of the total outstanding shares but not part of the total issued shares of a corporation 
C)  unissued shares that are held by the treasurer of the corporation 
D)  issued shares that have been reacquired by a corporation 
A)  shares held by the U.S.Treasury Department 
B)  part of the total outstanding shares but not part of the total issued shares of a corporation 
C)  unissued shares that are held by the treasurer of the corporation 
D)  issued shares that have been reacquired by a corporation

Exam 12: Corporations: Organization, stock Transactions, and Dividends

The day on which the board of directors of the corporation distributes a dividend is called the declaration date.

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

The ability of a corporation to obtain capital is

The par value of common stock must always be equal to its market value on the date the stock is issued.

Which of the following is not a right possessed by common stockholders of a corporation?

Oregon,Inc.reported net income of $105,000.During the current year,the company had 5,000 shares of $100 par,5% preferred stock and 10,000 of $5 par common stock outstanding.The company declared and paid all preferred dividends.Oregon's earnings per share is

When a corporation completes a 3-for-1 stock split

Under the corporate form of business organization,

For accounting purposes,stated value is treated the same way as par value.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

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

Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credit(s)are made to

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Shares of common stock that were issued and then reacquired by a company

If 20,000 shares are authorized,15,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $15,000.

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

How is treasury stock shown on the balance sheet?

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 par common stock.The following amounts were distributed as dividends: ​ ​ Determine the dividends per share for preferred and common stock for each year.

Treasury stock shares are

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Match the following stockholders' equity concepts to the appropriate term (a-h). -Shares of common stock that were issued and then reacquired by a company

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.