Question 1

All of the following are normally found in a corporation's stockholders' equity section except

Accepted Answer

A)   Common Stock
B)   Paid-In Capital in Excess of Par
C)   Dividends in Arrears
D)   Retained EarningsE) A) and D)
F) A) and C)

Question 2

A corporation purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?

Accepted Answer

A)   $0
B)   $5,000
C)   $2,500
D)   $10,000E) A) and B)
F) All of the above

Question 3

The entry to record the issuance of common stock at a price above par includes a debit to

Accepted Answer

A)   Organizational Expenses
B)   Common Stock
C)   Cash
D)   Paid-In Capital in Excess of Par-Common StockE) B) and D)
F) A) and B)

Question 4

The stock dividends distributable account is listed in the current liability section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

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 6

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

Accepted Answer

A)   increase, $100,000
B)   increase, $350,000
C)   decrease, $100,000
D)   decrease, $350,000E) B) and C)
F) A) and D)

Question 7

Match the value to the appropriate account. For the year ended 2012 ABC had the following transactions:

Accepted Answer

- issued 10,000 shares of $2.00 par valu...

Question 8

Those most responsible for the major policy decisions of a corporation are the

Accepted Answer

A)   management.
B)   board of directors.
C)   employees.
D)   stockholders.E) A) and B)
F) A) and C)

Question 9

Cash dividends are normally paid on shares of treasury stock.

Accepted Answer

A) True 
 B)False

Question 10

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 first year.

Accepted Answer

A)   $0.50 and $0.10
B)   $0.00 and $0.10
C)   $0.50 and $0.00
D)   $2.00 and $0.00E) A) and D)
F) None of the above

Question 11

Which statement below is not a reason for a corporation to buy back its own stock.

Accepted Answer

A)   resale to employees
B)   bonus to employees
C)   for supporting the market price of the stock
D)   to increase the shares outstandingE) A) and B)
F) A) and C)

Question 12

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

The answer of Sabas Company has 20,000 shares of $100...

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

Cash dividends are normally paid on shares of treasury stock.

Correct Answer
verified

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

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

Which statement below is not a reason for a corporation to buy back its own stock.

Correct Answer
verified

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 first year.

Correct Answer
verified

The entry to record the issuance of common stock at a price above par includes a debit to

Correct Answer
verified

The stock dividends distributable account is listed in the current liability section of the balance sheet.

Correct Answer
verified

Match the value to the appropriate account. For the year ended 2012 ABC had the following transactions:

Correct Answer
verified
- issued 10,000 shares of $2.00 par valu...
View Answer

A corporation purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?

Correct Answer
verified

Those most responsible for the major policy decisions of a corporation are the

Correct Answer
verified

All of the following are normally found in a corporation's stockholders' equity section except

Correct Answer
verified

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

Correct Answer
verified

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

Cash dividends are normally paid on shares of treasury stock.

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedShow Answer

Which statement below is not a reason for a corporation to buy back its own stock.

Correct AnswerverifiedShow Answer

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 first year.

Correct AnswerverifiedShow Answer

The entry to record the issuance of common stock at a price above par includes a debit to

Correct AnswerverifiedShow Answer

The stock dividends distributable account is listed in the current liability section of the balance sheet.

Correct AnswerverifiedShow Answer

Match the value to the appropriate account. For the year ended 2012 ABC had the following transactions:

Correct Answerverified- issued 10,000 shares of $2.00 par valu...View AnswerShow Answer

A corporation purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?

Correct AnswerverifiedShow Answer

Those most responsible for the major policy decisions of a corporation are the

Correct AnswerverifiedShow Answer

All of the following are normally found in a corporation's stockholders' equity section except

Correct AnswerverifiedShow Answer

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

Correct AnswerverifiedShow Answer

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- issued 10,000 shares of $2.00 par valu...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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