Question Details

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 initial capital needs of the company.
b. is indicated in its by-laws.
c. is indicated in its charter.
d. must be recorded in a formal accounting entry.
3. Owners' equity for a corporation is identified as each of the following except
a. corporate capital.
b. paid-in capital.
c. shareholders' equity.
d. stockholders' equity.
4. Retained earnings
a. is unique to the corporate form of business.
b. is an optional account in the partnership form of business.
c. reflects cash paid in by shareholders to date.
d. is closed at the end of the year.
5. Dividends are declared out of
a. Capital Stock.
b. Paid-in Capital in Excess of Par Value.
c. Retained Earnings.
d. Treasury Stock.



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