Recent Question

A corporation acts under its own name 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 not-for-profit. 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 recei ...

Other / Other 22 Mar 2016

corporate form of business organization 1. Which one of the following is a privately held corporation? a. Intel b. General Electric c. Caterpillar Inc. d. Cargill Inc. 2. The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is a. the sole proprietorship. b. the partnership. c. the corporation. d. not known. 3. Under the corporate form of business ...

Other / Other 22 Mar 2016

The sale of common stock 1. If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at a. fair value. b. cost. c. zero. d. a nominal amount. 2. If stock is issued for less than par value, the account a. Paid-In Capital in Excess of Par is credited. b. Paid-In Capital in Excess of Par is debited if a debit balance exists in the account. c. Paid-In Capital in Excess of Par is debi ...

Other / Other 22 Mar 2016

the transferability of ownership rights in a corporation 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 22 Mar 2016

S. Lamar performed legal services for E. Garr 1. If Keene Company issues 4,500 shares of $5 par value common stock for $80,000, the account a. Common Stock will be credited for $22,500. b. Paid-in Capital in Excess of Par will be credited for $22,500. c. Paid-in Capital in Excess of Par will be credited for $80,000. d. Cash will be debited for $57,500. 2. Carson Packaging Corporation began business in 2013 by issuing 25,000 s ...

Other / Other 22 Mar 2016

The sale of common stock 1. If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at a. fair value. b. cost. c. zero. d. a nominal amount. 2. If stock is issued for less than par value, the account a. Paid-In Capital in Excess of Par is credited. b. Paid-In Capital in Excess of Par is debited if a debit balance exists in the account. c. Paid-In Capital in Excess of Par is debi ...

Other / Other 22 Mar 2016

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 po ...

Other / Other 22 Mar 2016

largest number of common shares 1. Barton Company is a publicly held corporation whose $1 par value stock is actively traded at $32 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $100,000. When recording this transaction, Barton Company will a. debit Land for $100,000. b. credit Common Stock for $96,000. c. debit Land for $96,000. d. credit Paid-In Capital in Excess of Par for $98,000. ...

Other / Other 22 Mar 2016

investment firm underwrites a stock issue 1. If a corporation has only one class of stock, it is referred to as a. classless stock. b. preferred stock. c. solitary stock. d. common stock. 2. The term residual claim refers to a stockholders’ right to a. receive dividends. b. share in assets upon liquidation. c. acquire additional shares when offered. d. exercise a proxy vote. 3. Which of the following factor ...

Other / Other 22 Mar 2016

Retained earnings that are restricted are unavailable for dividends. 1. A correction in income of a prior period involves either a debit or credit to the Retained Earnings account. 2. Prior period adjustments to income are reported in the current year's income statement. 3. Retained earnings that are restricted are unavailable for dividends. 4. Restricted retained earnings are available for preferred stock dividends ...

Other / Other 22 Mar 2016