Question;1.;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);$53,880,000.
Paper#45524 | Written in 18-Jul-2015Price : $22