Ch. 11 Quiz example #41250

Which of the following represents the largest number of common shares? A. Issued shares B. Outstanding shares C. Treasury shares D. Authorized shares

Treasury stock is A.stock of an outside corporation which is purchased and held as an investment in the treasury. B. stock issued by the U.S. Treasury Department. C. a corporation's own stock which has been reacquired. D. corporate stock issued by the treasurer of a company.

Which of the following factors does not affect the initial market price of a stock? A. the par value of the stock B. the company's anticipated future earnings C. the expected dividend rate per share D. the current state of the economy

Hsu, Inc. issued 10,000 shares of stock at a stated value of $8/share. The total issue of stock sold for $15 per share. The journal entry to record this transaction would include a A. credit to Common Stock for $80,000 B. credit to Additional Paid In Capital for $150,000 C. debit to Cash for $80,000 D. credit to Common Stock for $150,000

If common stock is issued for an amount greater than par value, the excess should be credited to A. Legal Capital B. Retained Earnings C. Additional Paid In Capital D. Cash

A corporation purchases 40,000 shares of its own $30 par common stock for $45 per share, recording it at cost. What will be the effect on total stockholders' equity? A. increase by $1,200,000 B. increase by $1,800,000 C. decrease by $1,800,000 D. decrease by $1,200,000

On January 2, 2012, Marshall Inc. issued 5,000 shares of 6% cumulative preferred stock at $100 par value. On December 31, 2015, Marshall Inc. declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders? (Hint: Be careful about the dates)

Carson Packaging Corporation began business in 2015 by issuing 30,000 shares of $3 par common stock for $8 per share and 12,000 share of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2015 balance sheet, Carson Packaging would report A. Common Stock of $240,000 B. Common Stock of $360,000 C. Additional Paid In Capital of $90,000 D. Common Stock of $90,000

Dividends in arrears on cumulative preferred stock A.should be disclosed in the notes to the financial statements. B. are a long-term liability on the balance sheet. C. are a current liability on the balance sheet. D.only occur when preferred dividends have been declared.

Chase Inc. sells 2,000 shares of treasury stock that were purchased for $32,000 at $20/share. The entry to record this sale should include a credit to A. Loss from Sale of Treasury Stock $8000 B. Paid-In Capital from Treasury Stock $8000 C. Retained Earnings $8000 D. Gain from Sale of Treasury Stock $8000