Recent Question

What is ordinarily the first step in the formation 1. Which of the following statements is not considered a disadvantage of the corporate form of organization? a. Additional taxes b. Government regulations c. Limited liability of stockholders d. Separation of ownership and management 2. What is ordinarily the first step in the formation of a corporation? a. Development of by-laws for the corporation b. Issuance of the corporate ch ...

Other / Other 05 Apr 2016

A factor which distinguishes the corporate form of organization 1. A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a a. corporation is organized for the purpose of making a profit. b. corporation is subject to numerous federal and state government regulations. c. corporation is an accounting economic entity. d. corporation’s temporary accounts are closed at the ...

Other / Other 05 Apr 2016

The stockholders' equity section of a corporation's balance sheet True or False: 1. A corporation can issue more shares than it is authorized in its charter, if the board of directors approves of an increase in the number of authorized shares. 2. The market value of a corporation's stock is determined by the number of shares that the corporation has been authorized to issue. 3. Each stockholder in a corporation has a separate capit ...

Other / Other 05 Apr 2016

Which of the following statements reflects the transferability 1. Which of the following would not be true of a privately held corporation? a. It is sometimes called a closely held corporation. b. Its shares are regularly traded on the New York Stock Exchange. c. It does not offer its shares for sale to the general public. d. It is usually smaller than a publicly held company. 2. Which of the following is not true of a corporation? ...

Other / Other 05 Apr 2016

Owners' equity for a corporation 1. A corporation has the following account balances: Common stock, $1 par value, $30,000; Paid-in Capital in Excess of Par Value, $1,350,000. Based on this information, the a. legal capital is $1,380,000. b. number of shares issued are 30,000. c. number of shares outstanding are 1,380,000. d. average price per share issued is $4.60. 2. The authorized stock of a corporation a. only reflects the initi ...

Other / Other 05 Apr 2016

Retained earnings are subtracted from paid-in capital True or False: 1. When a corporation has only one class of capital stock, it is identified as preferred stock. 2. Retained earnings are a part of stockholders' equity. 3. Retained earnings are subtracted from paid-in capital to arrive at total stockholders' equity. 4. Stock can be issued only in exchange for cash. 5. The par value of stock issued for noncash assets is never a fac ...

Other / Other 05 Apr 2016

If common stock is issued for an amount 1. Retained earnings is a. always equal to the amount of cash that the corporation has generated from operations. b. a part of the paid-in capital of the corporation. c. a part of the stockholders' claim on the total assets of the corporation. d. closed at the end of each accounting period. 2. When stock is issued for legal services, the transaction is recorded by debiting Organization Expens ...

Other / Other 05 Apr 2016

A corporation can be organized for the purpose of making a profit 1. A corporation is not an entity which is separate and distinct from its owners. 2. A corporation can be organized for the purpose of making a profit or it may be nonprofit. 3. A corporation acts under its own name rather than in the name of its stockholders. 4. If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends rec ...

Other / Other 05 Apr 2016

A proxy is a legal document that instructs a stockholder’s agent True or False: 1. A stockholder has the right to vote in the election of the board of directors. 2. A proxy is a legal document that instructs a stockholder’s agent how to vote shares of stock for the stockholder. 3. As soon as a corporation is authorized to sell stock, an accounting journal entry should be made recording the total value of the shares au ...

Other / Other 05 Apr 2016

The ability of a corporation to obtain capital 1. A typical organization chart showing delegation of authority would show a. stockholders delegating to the board of directors. b. the board of directors delegating to stockholders. c. the chief executive officer delegating to the board of directors. d. the controller delegating to the chief executive officer. 2. The officer who is generally responsible for maintaining the cash position o ...

Other / Other 05 Apr 2016