54.
Advantages of the corporate form of business include which of the following?
I. Double taxation
II. Ability to raise capital
III. Ability to transfer ownership
IV. More paperwork
V. Limited liability
55.
Which of the following statements regarding the corporate form of business is correct?
56.
The disadvantages of the corporate form of business include:
57.
The correct order from the smallest number of shares to the largest number of shares is:
58.
Authorized common stock refers to the total number of shares:
59.
Issued stock refers to the number of shares:
60.
Outstanding common stock refers to the total number of shares:
61.
Outstanding common stock specifically refers to:
62.
The par value of shares issued is normally recorded in the:
63.
The par value of common stock represents:
64.
If a company issues 1,000 shares of $1 par value common stock for $20 per share, what
would be the effect on the accounting equation?
65.
If a company issues 1,000 shares of $1 par value common stock for $20 per share, which
of the following accounts would be credited?
66.
When a company issues 25,000 shares of $1 par value common stock for $10 per share,
the journal entry for this issuance would include:
67.
Wright Inc. issued 20,000 shares of $1 par value common stock for $80,000. The journal
entry to record this issuance includes a:
68.
When a company issues 25,000 shares of $1 par value common stock for $10 per share,
the journal entry for this issuance would include:
69.
Jade Jewelers issued 15,000 shares of $1 par value stock for $20 per share. What is true
about the journal entry to record the issuance?
70.
South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share. What is
true about the journal entry to record the issuance?
71.
Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share.
The entry to record the issuance will not include a:
72.
Preferred stock is called preferred because it usually has two preferences over common
stock. These preferences relate to:
73.
Preferred stock:
74.
Which of the following has the highest expected return to the investor?
75.
Which of the following has the lowest expected return to the investor?
76.
Which of the following is the most likely to have voting rights?
77.
Which of the following financing alternatives has the highest preference of payment in a
case where the company liquidates its assets?
78.
Which of the following is not a potential feature of preferred stock?
79.
A company issued 1,000 shares of $1 par value preferred stock for $5 per share. What is
true about the journal entry to record the issuance?
80.
The Surf’s Up issues 1,000 shares of 6%, $100 par value preferred stock at the beginning
of 2017. All remaining shares are common stock. The company was not able to pay
dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred
stock is
cumulative
, how much of the $18,000 dividend will be paid to preferred
stockholders and how much will be paid to common stockholders in 2018?
81.
The Surf’s Up issues 1,000 shares of 6%, $100 par value preferred stock at the beginning
of 2017. All remaining shares are common stock. The company was not able to pay
dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred
stock is
noncumulative
, how much of the $18,000 dividend will be paid to preferred
stockholders and how much will be paid to common stockholders in 2018?
82.
California Adventures issues 5,000 shares of 8%, $100 par value preferred stock at the
beginning of 2017. All remaining shares are common stock. The company was not able to
pay dividends in 2017, but plans to pay dividends of $100,000 in 2018. Assuming the
preferred stock is
cumulative
, how much of the $100,000 dividend will be paid to preferred
stockholders and how much will be paid to common stockholders in 2018?
83.
California Adventures issues 5,000 shares of 8%, $100 par value preferred stock at the
beginning of 2017. All remaining shares are common stock. The company was not able to
pay dividends in 2017, but plans to pay dividends of $100,000 in 2018. Assuming the
preferred stock is
noncumulative
, how much of the $100,000 dividend will be paid to
preferred stockholders and how much will be paid to common stockholders in 2018?
84.
Treasury Stock is normally reported as:
85.
When treasury stock is resold at a price above cost:
86.
When treasury stock is acquired, what is the effect on total stockholders’ equity?