Question 1

A large retained earnings account means that there is cash available to pay dividends.

Accepted Answer

A) True 
 B)False

Question 2

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

Accepted Answer

A) True 
 B)False

Question 3

A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Accepted Answer

A) $25,000 
B) $45,000 
C) $20,000 
D) $ 5,000 
A) $25,000 
B) $45,000 
C) $20,000 
D) $ 5,000

Question 4

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:
 
Determine the dividends per share for preferred and common stock for the second year.

Accepted Answer

A) $2.25 and $0.00 
B) $2.25 and $0.45 
C) $0.00 and $0.45 
D) $2.00 and $0.45 
A) $2.25 and $0.00 
B) $2.25 and $0.45 
C) $0.00 and $0.45 
D) $2.00 and $0.45

Question 5

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:
 
Determine the dividends per share for preferred and common stock for the third year.

Accepted Answer

A) $4.50 and $0.25 
B) $3.25 and $0.25 
C) $4.50 and $0.90 
D) $2.00 and $0.25 
A) $4.50 and $0.25 
B) $3.25 and $0.25 
C) $4.50 and $0.90 
D) $2.00 and $0.25

Question 6

Before a stock dividend can be declared or paid,there must be sufficient cash.

Accepted Answer

A) True 
 B)False

Question 7

Under the Internal Revenue Code,corporations are required to pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 8

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Accepted Answer

A) True 
 B)False

Question 9

Double taxation is a disadvantage of a corporation because the same party has to pay taxes twice on the income.

Accepted Answer

A) True 
 B)False

A large retained earnings account means that there is cash available to pay dividends.

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the second year.

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year.

Before a stock dividend can be declared or paid,there must be sufficient cash.

Under the Internal Revenue Code,corporations are required to pay federal income taxes.

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Double taxation is a disadvantage of a corporation because the same party has to pay taxes twice on the income.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 11: Corporations: Organization, stock Transactions, and Dividends

A large retained earnings account means that there is cash available to pay dividends.

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the second year.

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year.

Before a stock dividend can be declared or paid,there must be sufficient cash.

Under the Internal Revenue Code,corporations are required to pay federal income taxes.

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Double taxation is a disadvantage of a corporation because the same party has to pay taxes twice on the income.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters