Question 1

The financial statement that shows the changes to a corporation's contributed capital is called:

Accepted Answer

A)  Balance Sheet. 
B)  Statement of Changes in Equity. 
C)  Income Statement. 
D)  Statement of Contributed Capital. 
E)  None of these answers is correct. 
A)  Balance Sheet. 
B)  Statement of Changes in Equity. 
C)  Income Statement. 
D)  Statement of Contributed Capital. 
E)  None of these answers is correct.

Question 2

___________________ is the total amount of cash and other assets received by the corporation from its shareholders in exchange for common and preferred shares.

Accepted Answer

The answer of ___________________ is the total amount of cash...

Question 3

A proxy is:

Accepted Answer

A)  A legal document that gives an agent of a shareholder the power to exercise the voting rights of that shareholder's shares. 
B)  A contractual commitment by an investor to purchase unissued shares and become a shareholder. 
C)  An amount of assets defined by law that shareholders must invest and leave invested in a corporation. 
D)  The right of common shareholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common shares issued by the corporation. 
E)  An arbitrary value a corporation places on each of the corporation's shares. 
A)  A legal document that gives an agent of a shareholder the power to exercise the voting rights of that shareholder's shares. 
B)  A contractual commitment by an investor to purchase unissued shares and become a shareholder. 
C)  An amount of assets defined by law that shareholders must invest and leave invested in a corporation. 
D)  The right of common shareholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common shares issued by the corporation. 
E)  An arbitrary value a corporation places on each of the corporation's shares.

Question 4

When preferred shares are issued,this will always cause an increase in the future return to common shareholders.

Accepted Answer

A) True 
 B)False

Question 5

Owners of preferred shares often do not have:

Accepted Answer

A)  Ownership rights to assets of the corporation. 
B)  Voting rights. 
C)  Preference to dividends. 
D)  The right to sell their shares. 
E)  Rights in liquidation. 
A)  Ownership rights to assets of the corporation. 
B)  Voting rights. 
C)  Preference to dividends. 
D)  The right to sell their shares. 
E)  Rights in liquidation.

Question 6

On January 1,Sharon Ltd's equity was as follows: common shares,unlimited shares authorized and 75,000 shares issued and outstanding.
Prepare journal entries to record the following transactions:

Accepted Answer

The answer of On January 1,Sharon Ltd's equity was as...

Question 7

The equity section for the single proprietorship can be called owner's equity because the equity belongs to the owner.The equity section for a corporation can be called shareholders' equity because the equity belongs to a group of owners known as shareholders.

Accepted Answer

A) True 
 B)False

Question 8

Adam Corporation received its charter and began business in 2015.The company was authorized to issue 100,000,$4,noncumulative,preferred shares and 500,000 common shares.Prepare journal entries to record the following transactions that occurred during 2015:

Accepted Answer

The answer of Adam Corporation received its charter and began...

Question 9

During 2015,Lee Corporation reported revenues of $527,000 and expenses of $330,000,and declared cash dividends of $45,000.Retained Earnings on January 1,2015 was $168,000.
1.Prepare closing entries at December 31,2015.
2.Calculate the balance in Retained Earnings on December 31,2015.

Accepted Answer

The answer of During 2015,Lee Corporation reported revenues of $527,000...

Question 10

A dividend preference for preferred shares means that:

Accepted Answer

A)  Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders. 
B)  Preferred shareholders are guaranteed dividends. 
C)  Dividends are paid quarterly. 
D)  Only preferred shareholders will receive dividends. 
E)  All of these answers are correct. 
A)  Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders. 
B)  Preferred shareholders are guaranteed dividends. 
C)  Dividends are paid quarterly. 
D)  Only preferred shareholders will receive dividends. 
E)  All of these answers are correct.

Question 11

The date of record is the date the directors vote to pay a dividend to shareholders.

Accepted Answer

A) True 
 B)False

Question 12

A corporation can issue two general types of shares: common and preferred.

Accepted Answer

A) True 
 B)False

Question 13

A new corporation ended its first year of operations with assets of $100,000,liabilities of $75,000,and contributed capital (common shares)of $10,000.What was the corporation's net income for the year?

Accepted Answer

A)  $25,000. 
B)  $65,000. 
C)  $90,000. 
D)  $75,000. 
E)  $15,000. 
A)  $25,000. 
B)  $65,000. 
C)  $90,000. 
D)  $75,000. 
E)  $15,000.

Question 14

The category of equity for a corporation which represents the cumulative net incomes less losses and dividends is called:

Accepted Answer

A)  Contributed capital. 
B)  Preferred shares. 
C)  Retained earnings. 
D)  Financial leverage. 
E)  The income statement. 
A)  Contributed capital. 
B)  Preferred shares. 
C)  Retained earnings. 
D)  Financial leverage. 
E)  The income statement.

Question 15

Brian's Stereo Ltd issued preferred shares that have a $10 dividend.This means that:

Accepted Answer

A)  Preferred shareholders have a guaranteed dividend. 
B)  The amount of the dividend is $10 per year per share. 
C)  Preferred shareholders are entitled to 10% of the annual profit. 
D)  The market price is $100 per share. 
E)  The market price is $10 per sharE. 
A)  Preferred shareholders have a guaranteed dividend. 
B)  The amount of the dividend is $10 per year per share. 
C)  Preferred shareholders are entitled to 10% of the annual profit. 
D)  The market price is $100 per share. 
E)  The market price is $10 per sharE.

Question 16

Susan Inc.is authorized to issue 70,000,$5,cumulative,preferred shares,and an unlimited number of common shares.Prepare journal entries to record the following transactions that occurred during the first 3 months of operations:

Accepted Answer

The answer of Susan Inc.is authorized to issue 70,000,$5,cumulative,preferred shares,and...

Question 17

Sanders Limited,since it was organized in January 2014,has had outstanding 1,200,$15,preferred shares,and 15,000 common shares.The corporation declared and paid dividends each year as shown below.Calculate the total dividends distributed to each class of shares under each of the assumptions given.

Accepted Answer

The answer of Sanders Limited,since it was organized in January...

Question 18

Discuss the effect of the dividend preference for preferred shares.

Accepted Answer

Preferred shareholders have the right to

Question 19

Lucie Corporation was formed on January 1 of the current year.The corporate charter authorized the company to issue 100,000 common shares.During the first month of operation,the corporation issued 300 shares to its lawyer in payment of a $5,600 bill for preparing the articles of incorporation.The entry to record this transaction would include:

Accepted Answer

A)  A debit to Organization Costs for $3,000. 
B)  A debit to Organization Costs for $5,600. 
C)  A credit to Organization Costs for $5,600. 
D)  A debit to Common Shares for $5,600. 
E)  A credit to Common Shares for $3,300. 
A)  A debit to Organization Costs for $3,000. 
B)  A debit to Organization Costs for $5,600. 
C)  A credit to Organization Costs for $5,600. 
D)  A debit to Common Shares for $5,600. 
E)  A credit to Common Shares for $3,300.

Question 20

Legal costs incurred to get a corporation up and running should be accounted for by debiting:

Accepted Answer

A)  Retained earnings. 
B)  Share capital. 
C)  Organization costs. 
D)  Cash. 
E)  Common shares. 
A)  Retained earnings. 
B)  Share capital. 
C)  Organization costs. 
D)  Cash. 
E)  Common shares.

The financial statement that shows the changes to a corporation's contributed capital is called:

___________________ is the total amount of cash and other assets received by the corporation from its shareholders in exchange for common and preferred shares.

A proxy is:

When preferred shares are issued,this will always cause an increase in the future return to common shareholders.

Owners of preferred shares often do not have:

On January 1,Sharon Ltd's equity was as follows: common shares,unlimited shares authorized and 75,000 shares issued and outstanding. Prepare journal entries to record the following transactions:

The equity section for the single proprietorship can be called owner's equity because the equity belongs to the owner.The equity section for a corporation can be called shareholders' equity because the equity belongs to a group of owners known as shareholders.

Adam Corporation received its charter and began business in 2015.The company was authorized to issue 100,000,$4,noncumulative,preferred shares and 500,000 common shares.Prepare journal entries to record the following transactions that occurred during 2015:

During 2015,Lee Corporation reported revenues of $527,000 and expenses of $330,000,and declared cash dividends of $45,000.Retained Earnings on January 1,2015 was $168,000. 1.Prepare closing entries at December 31,2015. 2.Calculate the balance in Retained Earnings on December 31,2015.

A dividend preference for preferred shares means that:

The date of record is the date the directors vote to pay a dividend to shareholders.

A corporation can issue two general types of shares: common and preferred.

A new corporation ended its first year of operations with assets of $100,000,liabilities of $75,000,and contributed capital (common shares)of $10,000.What was the corporation's net income for the year?

The category of equity for a corporation which represents the cumulative net incomes less losses and dividends is called:

Brian's Stereo Ltd issued preferred shares that have a $10 dividend.This means that:

Susan Inc.is authorized to issue 70,000,$5,cumulative,preferred shares,and an unlimited number of common shares.Prepare journal entries to record the following transactions that occurred during the first 3 months of operations:

Sanders Limited,since it was organized in January 2014,has had outstanding 1,200,$15,preferred shares,and 15,000 common shares.The corporation declared and paid dividends each year as shown below.Calculate the total dividends distributed to each class of shares under each of the assumptions given.

Discuss the effect of the dividend preference for preferred shares.

Legal costs incurred to get a corporation up and running should be accounted for by debiting:

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

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Exam 13: Organization and Operation of Corporations

The financial statement that shows the changes to a corporation's contributed capital is called:

___________________ is the total amount of cash and other assets received by the corporation from its shareholders in exchange for common and preferred shares.

A proxy is:

When preferred shares are issued,this will always cause an increase in the future return to common shareholders.

Owners of preferred shares often do not have:

On January 1,Sharon Ltd's equity was as follows: common shares,unlimited shares authorized and 75,000 shares issued and outstanding. Prepare journal entries to record the following transactions:

The equity section for the single proprietorship can be called owner's equity because the equity belongs to the owner.The equity section for a corporation can be called shareholders' equity because the equity belongs to a group of owners known as shareholders.

Adam Corporation received its charter and began business in 2015.The company was authorized to issue 100,000,$4,noncumulative,preferred shares and 500,000 common shares.Prepare journal entries to record the following transactions that occurred during 2015:

During 2015,Lee Corporation reported revenues of $527,000 and expenses of $330,000,and declared cash dividends of $45,000.Retained Earnings on January 1,2015 was $168,000. 1.Prepare closing entries at December 31,2015. 2.Calculate the balance in Retained Earnings on December 31,2015.

A dividend preference for preferred shares means that:

The date of record is the date the directors vote to pay a dividend to shareholders.

A corporation can issue two general types of shares: common and preferred.

A new corporation ended its first year of operations with assets of $100,000,liabilities of $75,000,and contributed capital (common shares)of $10,000.What was the corporation's net income for the year?

The category of equity for a corporation which represents the cumulative net incomes less losses and dividends is called:

Brian's Stereo Ltd issued preferred shares that have a $10 dividend.This means that:

Susan Inc.is authorized to issue 70,000,$5,cumulative,preferred shares,and an unlimited number of common shares.Prepare journal entries to record the following transactions that occurred during the first 3 months of operations:

Sanders Limited,since it was organized in January 2014,has had outstanding 1,200,$15,preferred shares,and 15,000 common shares.The corporation declared and paid dividends each year as shown below.Calculate the total dividends distributed to each class of shares under each of the assumptions given.

Discuss the effect of the dividend preference for preferred shares.

Legal costs incurred to get a corporation up and running should be accounted for by debiting:

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters