Question 1

The excess of issue price over par of common stock is termed a(n)

Accepted Answer

A)   discount
B)   income
C)   deficit
D)   premiumE) B) and C)
F) All of the above

Question 2

Prepare entries to record the following selected transactions completed during the current fiscal year:

Accepted Answer

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Question 3

Match between columns
                        Premises:  a company whose shares can be bought and sold on a stock exchange
 creditors cannot pursue stockholder’s personal assets to satisfy claims
 rules and procedures for corporate conduct of its affairs
 formally creates a corporation
 company whose shares are not bought or sold on a stock exchange
 responsible for establishing corporate policies
 a legal entity, separate from the people who create and operate it
 earnings of a company distributed to stockholders

Accepted Answer

The Answer of corporation and publicly held corporation and bylaws is...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A disadvantage of the corporate form of business entity is

Accepted Answer

A)   mutual agency for stockholders
B)   unlimited liability for stockholders
C)   corporations are subject to more governmental regulations
D)   the ease of transfer of ownershipE) B) and C)
F) None of the above

Question 6

Sabas Company has 20,000 shares of $100 par, 1% non-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 each year.

Accepted Answer

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Question 7

A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $150. 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)   $600.00E) B) and D)
F) A) and B)

Question 8

When no-par common stock with 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

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Accepted Answer

A)   Retained Earnings
B)   Treasury Stock
C)   Organizational Expenses
D)   Common StockE) B) and D)
F) A) and B)

Question 10

The date on which a cash dividend becomes a binding legal obligation is on the

Accepted Answer

A)   declaration date.
B)   date of record.
C)   payment date.
D)   last day of the fiscal year.E) A) and D)
F) A) and C)

Question 11

Stockholders' equity

Accepted Answer

A)   is usually equal to cash on hand
B)   includes paid-in capital and liabilities
C)   includes retained earnings and paid-in capital
D)   is shown on the income statementE) All of the above
F) C) and D)

Exam 13: Corporations: Organization, Stock Transactions, and Dividends

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.

Correct Answer
verified

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

Correct Answer
verified

Sabas Company has 20,000 shares of $100 par, 1% non-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 each year.

Correct Answer
verified
_TB2085_00...
View Answer

The date on which a cash dividend becomes a binding legal obligation is on the

Correct Answer
verified

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

Correct Answer
verified

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Correct Answer
verified

The excess of issue price over par of common stock is termed a(n)

Correct Answer
verified

Match the following descriptions to stockholders equity concepts

Prepare entries to record the following selected transactions completed during the current fiscal year:

Correct Answer
verified
_TB2085_00...
View Answer

Stockholders' equity

Correct Answer
verified

A disadvantage of the corporate form of business entity is

Correct Answer
verified

Exam 13: Corporations: Organization, Stock Transactions, and Dividends

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sabas Company has 20,000 shares of $100 par, 1% non-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 each year.

Correct Answerverified_TB2085_00...View AnswerShow Answer

The date on which a cash dividend becomes a binding legal obligation is on the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Correct AnswerverifiedShow Answer

The excess of issue price over par of common stock is termed a(n)

Correct AnswerverifiedShow Answer

Match the following descriptions to stockholders equity concepts

Prepare entries to record the following selected transactions completed during the current fiscal year:

Correct Answerverified_TB2085_00...View AnswerShow Answer

Stockholders' equity

Correct AnswerverifiedShow Answer

A disadvantage of the corporate form of business entity is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
_TB2085_00...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
_TB2085_00...
View Answer

Correct Answer
verified

Correct Answer
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