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I took off a lot. here is only 15 questions 1. (P...

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I took off a lot. here is only 15 questions 1. (Points: 3) Which of the following is a characteristic of a corporation? a. A corporation has a limited life. b. The owners of a corporation have limited liability for the corporation's debts. c. The owners of a corporation have co-ownership of the property of the corporation. d. A corporation is not taxed on the corporation's business income. Save Answer 2. (Points: 3) Which of the following characteristics of a corporation exists because corporations pay taxes on corporate earnings? a. No mutual agency b. Separation of ownership and management c. Double taxation d. Transferability of ownership Save Answer 3. (Points: 3) Which of the following would be included in the entry to record the issuance of 5,000 shares of $10 par value common stock at $13 per share? a. Paid in capital in excess of par, common would be debited for $5,000. b. Common stock would be debited for $50,000. c. Cash would be debited for $65,000. d. Common stock would be credited for $65,000. Save Answer 4. (Points: 3) Which of the following is TRUE of retained earnings? a. Retained earnings are a liability on the corporate balance sheet. b. Retained earnings represent capital that the corporation has earned through profitable operations. c. Retained earnings represent investments by the stockholders of a corporation. d. Retained earnings do not appear on any financial statement. Save Answer 5. (Points: 3) The following information is from the balance sheet of Tudor Corporation as of December 31, 2010. Preferred stock, $100 par $ 500,000 Paid-in capital in excess of par - preferred 35,000 Common stock, $1 par 190,000 Paid-in capital in excess of par - common 380,000 Retained earnings 131,500 Total stockholders' equity $1,236,500 Preferred stock, $100 par What was the average issue price of the common stock shares? a. $1.00 b. The average price cannot be determined from the information given. c. $1.90 d. $3.00 Save Answer 6. (Points: 3) The following information is from the balance sheet of Tudor Corporation as of December 31, 2010. Preferred stock, $100 par $ 500,000 Paid-in capital in excess of par - preferred 35,000 Common stock, $1 par 190,000 Paid-in capital in excess of par - common 380,000 Retained earnings 131,500 Total stockholders' equity $1,236,500 What was the total paid-in capital as of December 31, 2010? a. $ 956,000 b. Total paid-in capital cannot be determined from the information given. c. $1,236,600 d. $1,105,000 Save Answer 7. (Points: 3) A corporation declares a dividend of $.75 per share on 12,500 shares of common stock. Which of the following would be included in the entry to record the declaration? a. Retained earnings would be credited for $9,375. b. Paid-in capital in excess of par-common would be credited for $9,375. c. Retained earnings would be debited for $9,375. d. Dividends payable would be debited for $9,375. Save Answer 8. (Points: 3) When companies "pass the dividend", the dividends are said to be: a. declared. b. in arrears. c. preferred. d. cumulative. Save Answer 9. (Points: 3) The following information is from the balance sheet of a corporation as of December 31, 2010. Preferred dividends are in arrears for the 2009 and 2010. Preferred stock, cumulative, 7%, $50 par, 6,000 shares issued What is the book value for the preferred stock? a. The book value is $50.00 per share. b. The book value is $53.50 per share. c. The book value is $51.00 per share. d. The book value is $62.00 per share. Save Answer 10. (Points: 3) Which of the following is the amount computed by the following formula? (Net income + interest expense. / Average total assets a. The amount computed from the formula is the rate of return on total assets. b. The amount computed from the formula is income tax expense. c. The amount computed from the formula is the rate of return on stockholders' equity. d. The amount computed from the formula is deferred taxes payable. Save Answer 11. (Points: 3) The following information is from the books of Eastern Corporation. Net income $170,000 Preferred dividends 24,000 Interest expense 17,500 Beginning of the year amounts: Total assets 900,000 Total liabilities 375,000 Total common stockholders' equity 395,000 End of the year amounts: Total assets 930,000 Total liabilities 405,000 Total common stockholders' equity 435,000 Which of the following is the return on assets for Eastern Corporation? a. 19.2% b. 17.5% c. 20.5% d. 16.8% Save Answer 12. (Points: 3) The following information is from the books of Eastern Corporation. Net income $170,000 Preferred dividends 24,000 Interest expense 17,500 Beginning of the year amounts: Total assets 900,000 Total liabilities 375,000 Total common stockholders' equity 395,000 End of the year amounts: Total assets 930,000 Total liabilities 405,000 Total common stockholders' equity 435,000 Which of the following is the return on equity for Eastern Corporation? a. 35.9% b. 33.4% c. 35.2% d. 30.3% Save Answer 13. (Points: 3) A corporation has an income tax rate of 35%, taxable income of $100,000, and income before income tax of $300,000. Which of the following would be included in the entry to record income tax expense? a. Income tax expense is debited for $70,000. b. Deferred tax liability is credited for $35,000. c. Income tax payable is credited for $35,000. d. Prepaid income tax is credited for $35,000. Save Answer 14. (Points: 3) A company issued 40,000 shares of $5 common stock at $8. The company has now issued a 5% stock dividend when the market price of the stock is $10 a share. What is the amount transferred from the Retained earnings account to the Paid-in capital accounts as a result of the stock dividend? a. $20,000 b. $45,000 c. $16,000 d. $10,000 Save Answer 15. (Points: 3) Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share. Common stock, $5 par, 100,000 shares authorized, 40,000 shares issued $200,000 Paid in capital in excess of par - common 120,000 Retained earnings 290,000 Total stockholders' equity $610,000 What would be the total paid-in capital after a 10% common stock dividend? a. Total paid-in capital would be $320,000. b. Total paid-in capital would be $610,000. c. Total paid-in capital would be $366,000. d. Total paid-in capital would be $656,000. Save Answer

 

Paper#8196 | Written in 18-Jul-2015

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