Accounting helppppppp?

Accounting helppppppp?

Postby lairgnen22 » Sat Apr 30, 2011 10:18 am

1.
For accounting purposes, stated value is treated the same way as par value.
A) True
B) False
2.
The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.
A) True
B) False
Multiple Choice
3.
Which of the following is not a significant date with respect to dividends?
A) The declaration date.
B) The incorporation date.
C) The record date.
D) The payment date.
4.
All of the following statements about preferred stock are true except
A) preferred stock will have a paid-in capital account that is separate from other stock.
B) preferred stock is presented first on the stockholder's equity section.
C) preferred stock can be either par value or no-par value.
D) there can be only one class of preferred stock.
5.
Johnson Company issued 600 shares of no-par common stock for $10,200. Which of the following journal entries would be made if the stock has no stated value?
A)
B)
C)
D)
6.
XYZ Company has $20,000 of dividends in arrears. Based on this information, which of the following statements is false?
A) Dividends in arrears are not considered to be liabilities.
B) An obligation for dividends in arrears exists only after the board of directors declares payment.
C) The investment community looks favorably on companies with dividends in arrears, since the money is redirected toward more important growth opportunities.
D) The amount of dividends in arrears should be disclosed in the notes to the financial statements.
7.
Hutchinson Company had retained earnings of $10,000 on the balance sheet but disclosed in the footnotes that $2,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
A) $7,000.
B) $8,000.
C) $10,000.
D) $5,000.
8.
On the dividend record date
A) a dividend becomes a current obligation.
B) no entry is required.
C) an entry may be required if it is a stock dividend.
D) Dividends Payable is debited.
9.
Which of the following phrases is not descriptive of the corporate form of business?
A) Professional management.
B) Double taxation on distributed earnings.
C) Unlimited liability.
D) Continuous existence.
10.
Which of the following would not affect the balance of the Retained Earnings account?
A) Net income.
B) Stock dividend.
C) Stock split.
D) Gains and losses of a company.
11.
The following data is available for BOX Corporation at December 31, 2010:
Based on the data, how many shares of common stock are outstanding?
A) 15,000.
B) 10,000.
C) 14,960.
D) 9,960.
lairgnen22
 
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