Question 1

A liquidating dividend is usually paid when a company is going out of business or reducing its operations.

Accepted Answer

A) True 
 B)False

Question 2

Underwriters typically charge 1 percent of the selling price to guarantee the sale of initial public offerings of stock.

Accepted Answer

A) True 
 B)False

Question 3

Stockholders elect the board of directors who then appoint the officers of a corporation.

Accepted Answer

A) True 
 B)False

Question 4

An advantage of the corporate form is the separation of ownership and control.

Accepted Answer

A) True 
 B)False

Question 5

A stock dividend is a pro rata distribution of cash to a corporation's stockholders.

Accepted Answer

A) True 
 B)False

Question 6

No entry is required on the date of payment for a cash dividend.

Accepted Answer

A) True 
 B)False

Question 7

A corporation's board of directors may influence dividend policies,but the company's senior management has sole authority to declare dividends.

Accepted Answer

A) True 
 B)False

Question 8

When no-par common stock without a stated value is issued for cash,the Common Stock account is credited for an amount equal to the cash proceeds.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Par value is the minimum cushion of capital established for the protection of

Accepted Answer

A) investors (stockholders). 
B) management. 
C) creditors. 
D) customers. 
A) investors (stockholders). 
B) management. 
C) creditors. 
D) customers.

Question 11

Why might someone prefer to invest in a company by purchasing preferred stock rather than common stock?

Accepted Answer

The primary advantages of owning preferr

Question 12

A corporation records a dividend-related liability

Accepted Answer

A) on the payment date. 
B) on the record date. 
C) on the declaration date. 
D) when the stock sells ex-dividend. 
A) on the payment date. 
B) on the record date. 
C) on the declaration date. 
D) when the stock sells ex-dividend.

Question 13

Treasury shares are shares that are authorized but unissued.

Accepted Answer

A) True 
 B)False

Question 14

Book value per share refers to the

Accepted Answer

A) net assets represented by one share of a company's stock. 
B) highest price that investors will pay for a share of stock. 
C) issue price of the stock,less any market decline since issuance. 
D) par or stated value of a share of stock. 
A) net assets represented by one share of a company's stock. 
B) highest price that investors will pay for a share of stock. 
C) issue price of the stock,less any market decline since issuance. 
D) par or stated value of a share of stock.

Question 15

A stock dividend will cause an increase in total contributed capital at the date the dividend is declared.

Accepted Answer

A) True 
 B)False

Question 16

The information that follows pertains to stockholders' equity data of the Beagle Corporation on December 31,20x5.Compute the amount of each item indicated by a letter in the listing below.Where necessary,carry answers to two decimal place.

Accepted Answer

a.$300,000 (15,000 ´ $20)
b.$1

Question 17

A 2-for-1 stock split will have the same effect on the number of shares outstanding as a 200 percent stock dividend.

Accepted Answer

A) True 
 B)False

Question 18

The entry required to record start-up and organization costs will cause a increase in assets.

Accepted Answer

A) True 
 B)False

Question 19

The value at which one share of stock can be bought or sold is called

Accepted Answer

A) book value. 
B) call value. 
C) par or stated value. 
D) market value. 
A) book value. 
B) call value. 
C) par or stated value. 
D) market value.

Question 20

Book value per share of stock represents the amount the shareholder will receive per share if the company is sold or liquidated.

Accepted Answer

A) True 
 B)False

Exam 13: Accounting for Corporations

A liquidating dividend is usually paid when a company is going out of business or reducing its operations.

Underwriters typically charge 1 percent of the selling price to guarantee the sale of initial public offerings of stock.

Stockholders elect the board of directors who then appoint the officers of a corporation.

An advantage of the corporate form is the separation of ownership and control.

A stock dividend is a pro rata distribution of cash to a corporation's stockholders.

No entry is required on the date of payment for a cash dividend.

A corporation's board of directors may influence dividend policies,but the company's senior management has sole authority to declare dividends.

When no-par common stock without a stated value is issued for cash,the Common Stock account is credited for an amount equal to the cash proceeds.

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

Par value is the minimum cushion of capital established for the protection of

Why might someone prefer to invest in a company by purchasing preferred stock rather than common stock?

A corporation records a dividend-related liability

Treasury shares are shares that are authorized but unissued.

Book value per share refers to the

A stock dividend will cause an increase in total contributed capital at the date the dividend is declared.

The information that follows pertains to stockholders' equity data of the Beagle Corporation on December 31,20x5.Compute the amount of each item indicated by a letter in the listing below.Where necessary,carry answers to two decimal place.

A 2-for-1 stock split will have the same effect on the number of shares outstanding as a 200 percent stock dividend.

The entry required to record start-up and organization costs will cause a increase in assets.

The value at which one share of stock can be bought or sold is called

Book value per share of stock represents the amount the shareholder will receive per share if the company is sold or liquidated.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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