ACCN 2010 Quiz 11

ACCN 2010 Quiz 11 | Tulane University

Question 1

The amount of stock that may be issued according to the corporation's charter is referred to as the

·         authorized stock.  

·         issued stock.

·         outstanding stock.

·         unissued stock.

Question 2

The date on which a cash dividend becomes a binding legal obligation is on the

·         declaration date.

·         date of record.

·         last day of the fiscal year-end.

·         payment date.

Question 3

The two ways that a corporation can be classified by purpose are

·         general and limited.

·         publicly held and privately held.

·         state and federal.

·         profit and not-for-profit.

Question 4

The acquisition of treasury stock by a corporation

·         has no effect on total assets and total stockholders' equity.

·         requires that a gain or loss be recognized on the income statement.

·         decreases its total assets and total stockholders' equity.  

·         increases its total assets and total stockholders' equity.

Question 5

Which one of the following would not be considered an advantage of the corporate form of organization?

·         Separate legal existence.

·         Limited liability of stockholders.

·         Government regulation.  

·         Continuous life.

Question 6

                If common stock is issued for an amount greater than par value, the excess should be credited to

·         Legal Capital.

·         Paid-in Capital in Excess of Par Value

·         Retained Earnings.

·         Cash.

Question 7

The number of shares of issued stock equals

·         authorized shares minus treasury shares.

·         outstanding shares plus authorized shares.

·         unissued shares minus outstanding shares.

·         outstanding shares plus treasury shares.