Question Details

Legal capital per share cannot be equal to 



1. Barr, Inc. reports $3,000,000 of common stock, and $4,500,000 of additional paid-in
capital on its balance sheet. The number of common shares issued and outstanding is
500,000 shares. The book value per share is
a. $15.
b. $9.
c. $6.
d. not determinable.
2. Which of the following is an incorrect statement about a corporation?
a. A corporation is an entity separate and distinct from its owners.
b. Creditors ordinarily have recourse only to corporate assets in satisfaction of their
claims.
c. A corporation may be formed in writing, orally, or implied.
d. A corporation is subject to numerous state and federal regulations.
3. Capital stock to which the charter has assigned a value per share is called
a. par value stock.
b. no-par value stock.
c. stated value stock.
d. assigned value stock.
4. Legal capital per share cannot be equal to the
a. par value per share of par value stock.
b. total proceeds from the sale of par value stock above par value.
c. stated value per share of no-par value stock.
d. total proceeds from the sale of no-par value stock.
5. When common stock is issued for services or non-cash assets, cost should be
a. only the fair market value of the consideration given up.
b. only the fair market value of the consideration received.
c. the book value of the common stock issued.
d. either the fair market value of the consideration given up or the consideration
received, whichever is more clearly evident.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help