FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Accounting for Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Short Answer

Review LaterAdd Note

Review Later

Stock that has been issued and is held by stockholders is _________________________ stock.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Stated value of no-par stock is:

A) Another name for redemption value.
B) An amount assigned to par value stock by the state of incorporation.
C) The market value of the stock on the date of issuance.
D) The difference between the par value of stock and the amount below or above par value paid-in by the stockholder.
E) An amount assigned to no-par stock by the corporation's board of directors.

F) A) and E)
G) All of the above

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

The following data were reported by a corporation: The number of outstanding shares is:

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend during the current year: Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.

Common shareholders always share equally with all other shareholders in all dividends.

_________________________ has special rights that give it priority or senior status over common stock in one or more areas such as receiving dividends or for the distribution of assets if the corporation is liquidated.

Stock options are often used to encourage employees to:

Explain how to calculate the price-earnings ratio and describe how it is used in analysis of a company's financial condition and performance.

A dividend preference for preferred stock means that:

Record the following transactions of a company in general journal form: (a) Reacquired 8,000 of its own $10 par value common stock at $40 cash per share. The stock was originally issued at $15 per share. (b) Sold 2,000 shares of the stock reacquired under part (a) at $43 cash per share. (c) Sold 3,000 shares of the stock reacquired under part (a) at $39 cash per share.

The date the directors vote to pay a dividend is called the:

A stock dividend reduces a corporation's assets and its stockholders' equity.

Stocks that pay large dividends on a regular basis are growth stocks.

A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

_____________________ is a class of stock assigned a value by the corporation in its charter.

Rights to purchase common stock at a fixed price over a specified period are:

A preemptive right means shareholders can purchase their proportional share of common stock issued later by the corporation.

__________________________ is the annual amount of cash dividends distributed to common shareholders relative to the stock's market price.

If the purchase price of retired stock exceeds the net amount removed from paid-in capital, the excess is debited to Retained Earnings.

When all of the authorized shares have the same rights and characteristics, the stock is called