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accounting question

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Question;Use;the following to answer questions 7 - 10;Shown below is;information relating to the stockholders' equity of Surf Corporation as of;December 31, 2001;8% cumulative;preferred stock, $100 par;Callable at $106 $;200,000;Common stock, $10 par;500,000 shares;Authorized, 80,000;shares issued and outstanding 800,000;Additional paid-in;capital: common stock 300,000;Retained earnings;(Deficit) (20,000);Dividends in arrears;16,000;7. Refer to the above;data. How many shares of preferred stock are issued and outstanding?;Answer;A) 1,851 shares;B) 2,000 shares.;C) 20,000 shares.;D) Some other amount.;Question 8;8. Refer to the above;data. What was the original issue price per share of common stock?;Answer;A) $10.00 per share.;B) $12.50 per share.;C) $13.75 per share.;D) Some other amount.;Question 9;9. Refer to the above;data. Compute total paid-in capital.;Answer;A) $1,320,000.;B) $1,280,000.;C) $1,300,000.;D) Some other amount.;Question 10;10. Refer to the above;data. Total stockholders' equity is;Answer;A) $1,300,000.;B) $1,320,000.;C) $1,280,000.;D) Some other amount.;Question 11;11. Which of the;following individuals has the most power to influence corporate policy on a;long-term basis?;Answer;A) A shareholder;owning 60% of the outstanding common stock.;B) A shareholder;owning 80% of the outstanding preferred stock.;C) The treasurer of;the corporation.;D) The controller of;the corporation.;Question 12;12. The overall effect;of declaring and distributing a cash dividend includes each of the following;except;Answer;A) Reducing total;assets.;B) Reducing;stockholders' equity;C) Reducing the;balance of the Retained Earnings account;D) Reducing net income;for the period.;Question 13;13. The financial;statements of a corporation that failed during the current year to pay any;dividends on its cumulative preferred stock should;Answer;A) Include the amount;of the omitted dividends among its current liabilities;B) Include a footnote;disclosing the amount of the dividends in arrears.;C) Show the amount of;the omitted dividends as a deduction from retained earnings.;D) List the omitted;dividends as a long-term liability.;Question 14;14. Which of the;following best describes the book value of a share of stock?;Answer;A) Net assets divided;by the number of shares outstanding.;B) The amount at which;the stock would sell on the market if sold by a willing and informed seller to;a willing and informed buyer.;C) Total assets of the;company, as reported in the accounting records, divided by the number of shares;of stock outstanding.;D) Total stockholders;equity divided by the number of shares authorized

 

Paper#45072 | Written in 18-Jul-2015

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