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Which one of the following would not be considered an advantage of the corporate form of organization?

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Question

Which one of the following would not be considered an advantage of the corporate form of organization?;A);Limited liability of owners;B);Separate legal existence;C);Continuous life;D);Government regulation;2.;The par value of a stock;A);is legally significant.;B);reflects the most recent market price.;C);is selected by the SEC.;D);is indicative of the worth of the stock.;3.;A separate paid-in capital account is used to record each of the following except the issuance of;A);no-par stock.;B);par value stock.;C);stated value stock.;D);treasury stock above cost.;4.;Paid-In Capital in Excess of Stated Value;A);is credited when no-par stock does not have a stated value.;B);is reported as part of paid-in capital on the balance sheet.;C);represents the amount of legal capital.;D);normally has a debit balance.;5.;The _______________ feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends.;6.;In the financial statements, organization costs appears;A);immediately below Retained Earnings in the stockholders' equity section.;B);in the income statement.;C);as part of paid-in capital in the stockholders' equity section.;D);as an intangible asset.;7.;In published annual reports;A);subdivisions within the stockholders' equity section are routinely reported in detail.;B);capital surplus is used in place of retained earnings.;C);the individual sources of additional paid-in capital are often combined.;D);retained earnings is often not shown separately.;8.;If stock is issued in exchange for noncash assets, the assets should be valued at the ____________________ of the consideration ___________________ or the assets ____________________, whichever is more clearly evident.;9.;Beckham Company has 1,000 shares of 6%, $100 par cumulative preferred stock outstanding at December 31, 2010. No dividends have been paid on this stock for 2009 or 2010. Dividends in arrears at December 31, 2010 total;A);$0.;B);$600.;C);$6,000.;D);$12,000.;10.;Renner Corporation's December 31, 2010 balance sheet showed the following;8% preferred stock, $20 par value, cumulative, 20,000 shares;authorized, 15,000 shares issued;$ 300,000;Common stock, $10 par value, 2,000,000 shares authorized;1,950,000 shares issued, 1,930,000 shares outstanding;19,500,000;Paid-in capital in excess of par value ? preferred stock;60,000;Paid-in capital in excess of par value ? common stock;27,000,000;Retained earnings;7,650,000;Treasury stock (20,000 shares);630,000;Renner's total stockholders' equity was;A);$55,140,000.;B);$46,860,000.;C);$54,510,000.;D)

 

Paper#29903 | Written in 18-Jul-2015

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