Corporations Accounting
 
  1. Question: Which of the following is not a major advantage of a corporation?

    A
    Separate legal existence.

    B
    Continuous life.

    C
    Government regulations.

    D
    Transferable ownership rights.

    Note: Not available
    1. Report
  2. Question: A major disadvantage of a corporation is:

    A
    limited liability of stockholders.

    B
    transferable ownership rights.

    C
    additional taxes.

    D
    None

    Note: Not available
    1. Report
  3. Question: Which of the following statements is false?

    A
    Ownership of common stock gives the owner a voting right.

    B
    The stockholders equity section begins with paid-in capital.

    C
    The authorization of capital does not result in a formal accounting entry.

    D
    Legal capital per share applies to par value stock but not to no-par value stock.

    Note: Not available
    1. Report
  4. Question: The accounting Retained Earnings is:

    A
    a subdivision of paid-in capital.

    B
    net income retained in the corporation.

    C
    reported as an expense in the income statement.

    D
    closed to capital stock.

    Note: Not available
    1. Report
  5. Question: ABC Corporation issues 1,000 shares of $10 par value common stock at $12 per share. In recording the transaction, credit are made to:

    A
    Common Stock $10,000 and Paid-in Capital in Excess of State Value $2000.

    B
    Common Stock $2000.

    C
    Common Stock $10,000 and Retained Earning $2000.

    D
    Common Stock $10,000 and Paid-in Capital in Excess of Par Value $2,000

    Note: Not available
    1. Report
  6. Question: XYZ, Inc sells 100 shares of $5 par value treasury stock at $13 per share. If the cost of acquiring the shares was $10 per share, the entry for the sales should include credits to:

    A
    Treasury Stock $1000 and Paid-in Capital from Treasury Stock $300.

    B
    Treasury Stock $500 and Paid-in Capital from Treasury Stock $800.

    C
    Treasury Stock $1000 and Retained Earning $300.

    D
    Treasury Stock $500 and Paid-in Capital in Excess of Par Value $800.

    Note: Not available
    1. Report
  7. Question: In stockholders equity section, the cost of treasury stock is deducted from:

    A
    total paid-in capital and retained earning.

    B
    retained earnings.

    C
    total stockholders equity.

    D
    common stock in paid-in capital.

    Note: Not available
    1. Report
  8. Question: Preferred stock may have priority over common stock except in:

    A
    dividends.

    B
    assets in the event of liquidation.

    C
    conversion.

    D
    voting.

    Note: Not available
    1. Report
  9. Question: Which of the following in not reported under additional paid-in capital?

    A
    Paid-in capital in excess of par value.

    B
    Common stock.

    C
    Paid-in capital in excess of stated value.

    D
    Paid-in capital from treasury stock.

    Note: Not available
    1. Report
  10. Question: The ledger of JFK, Inc. Shows common stock, common treasury stock, and no preferred stock. For this company, the formula for computing book value per share is:

    A
    total paid-in capital and retained earning divided by the number of shares of common stock issued.

    B
    common stock divided by the number of shares of common stock issued.

    C
    total stockholders equity divided by the number of shares of common stock outstanding.

    D
    total stockholders equity divided by the number of shares of common stock issued.

    Note: Not available
    1. Report
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