Question 1

A corporation might buy some of its own stock to help keep the market price from falling.

Accepted Answer

A) True 
 B)False

Question 2

Determine the dollar value of the stock dividend issued by James Corporation.

Accepted Answer

A) $45,600 
B) $79,200 
C) $39,600 
D) $720,000 
A) $45,600 
B) $79,200 
C) $39,600 
D) $720,000

Question 3

In a closely held corporation, exchanges of stock are limited to transactions between individuals.

Accepted Answer

A) True 
 B)False

Question 4

Coleman Co. purchased 500 shares of its own stock as treasury stock for $30 per share. The no-par stock had originally been issued at $25 per share. Show the effects of the purchase.

Accepted Answer

(D) (N) (D) (N) (N) (N) (D)
Explanation:

Question 5

Describe cumulative preferred stock.

Accepted Answer

Cumulative preferred stock is stock whos

Question 6

The book value of a share of stock is equal to the market or selling price of the stock.

Accepted Answer

A) True 
 B)False

Question 7

What is the importance of record date for a corporation that has declared dividends?

Accepted Answer

Record date is the d

Question 8

The term "double taxation" refers to which of the following?

Accepted Answer

A) A sole proprietorship must pay income taxes on its net income and the owner is also required to pay income taxes on withdrawals. 
B) In a partnership, both partners are required to claim their share of net income on their tax returns. 
C) Corporations must pay income taxes on their net income, and their stockholders must pay income taxes on their dividends. 
D) A sole proprietorship must pay income taxes to both the state government and the federal government. 
A) A sole proprietorship must pay income taxes on its net income and the owner is also required to pay income taxes on withdrawals. 
B) In a partnership, both partners are required to claim their share of net income on their tax returns. 
C) Corporations must pay income taxes on their net income, and their stockholders must pay income taxes on their dividends. 
D) A sole proprietorship must pay income taxes to both the state government and the federal government.

Question 9

Calculate the number of shares outstanding after the stock dividend is issued.

Accepted Answer

A) 51,700 shares 
B) 55,000 shares 
C) 58,300 shares 
D) 503,300 shares 
A) 51,700 shares 
B) 55,000 shares 
C) 58,300 shares 
D) 503,300 shares

Question 10

With respect to the current ratio, the declaration of a cash dividend will:

Accepted Answer

A) have no effect on the current ratio. 
B) have an effect that depends on the market price of the stock at the time the dividend is declared. 
C) increase the current ratio. 
D) decrease the current ratio. 
A) have no effect on the current ratio. 
B) have an effect that depends on the market price of the stock at the time the dividend is declared. 
C) increase the current ratio. 
D) decrease the current ratio.

Question 11

Ease of transferability of ownership is one of the important advantages of the corporate form of business organization.

Accepted Answer

A) True 
 B)False

Question 12

Indicate whether each of the following statements is true or false.
_____ a) Double taxation refers to the fact that both a partnership and its partners must pay income tax on the earnings of the partnership.
_____ b) A sole proprietorship is an accounting entity separate from its owner.
_____ c) Limited liability is a benefit to both corporations and partnerships, but not to sole proprietorships.
_____ d) Unlike a partnership, a corporation is not terminated when a major stockholder withdraws his or her investment.
_____ e) Corporations are, generally, subject to fewer governmental regulations than sole proprietorships.

Accepted Answer

a) False b) True c) False d) True e) Fal

Question 13

Woodruff Corporation has 170,000 shares of $10 par value common stock issued and outstanding. If Woodruff Corporation issued a 2-for-1 stock split, what dollar amount would be shown for common stock on the balance sheet after the stock split?

Accepted Answer

Before split: 170,00

A corporation might buy some of its own stock to help keep the market price from falling.

Determine the dollar value of the stock dividend issued by James Corporation.

In a closely held corporation, exchanges of stock are limited to transactions between individuals.

Coleman Co. purchased 500 shares of its own stock as treasury stock for $30 per share. The no-par stock had originally been issued at $25 per share. Show the effects of the purchase.

Describe cumulative preferred stock.

The book value of a share of stock is equal to the market or selling price of the stock.

What is the importance of record date for a corporation that has declared dividends?

The term "double taxation" refers to which of the following?

Calculate the number of shares outstanding after the stock dividend is issued.

With respect to the current ratio, the declaration of a cash dividend will:

Ease of transferability of ownership is one of the important advantages of the corporate form of business organization.

Woodruff Corporation has 170,000 shares of $10 par value common stock issued and outstanding. If Woodruff Corporation issued a 2-for-1 stock split, what dollar amount would be shown for common stock on the balance sheet after the stock split?

An Introduction to Accounting

Accounting for Accruals and Deferrals

The Double-Entry Accounting System

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Statement of Cash Flows

Financial Statement Analysis Available Online in the Connect Library

Filters

Exam 11: Proprietorships, Partnerships, and Corporations

A corporation might buy some of its own stock to help keep the market price from falling.

Determine the dollar value of the stock dividend issued by James Corporation.

In a closely held corporation, exchanges of stock are limited to transactions between individuals.

Coleman Co. purchased 500 shares of its own stock as treasury stock for $30 per share. The no-par stock had originally been issued at $25 per share. Show the effects of the purchase.

Describe cumulative preferred stock.

The book value of a share of stock is equal to the market or selling price of the stock.

What is the importance of record date for a corporation that has declared dividends?

The term "double taxation" refers to which of the following?

Calculate the number of shares outstanding after the stock dividend is issued.

With respect to the current ratio, the declaration of a cash dividend will:

Ease of transferability of ownership is one of the important advantages of the corporate form of business organization.

Woodruff Corporation has 170,000 shares of $10 par value common stock issued and outstanding. If Woodruff Corporation issued a 2-for-1 stock split, what dollar amount would be shown for common stock on the balance sheet after the stock split?

An Introduction to Accounting

Accounting for Accruals and Deferrals

The Double-Entry Accounting System

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Statement of Cash Flows

Financial Statement Analysis Available Online in the Connect Library

Filters