Name ACG 302 Quiz Chapter 11 Spring 2013 Multiple Choice Choose the most correct answer Provide work if possible 1 Which one of the following would not be considered an advantage of the corporate form.
Name: ACG 302 Quiz Chapter 11 Spring 2013 Multiple Choice: Choose the most correct answer Provide work if possible Which one of the following would not be considered an advantage of the corporate form of organization? A) Limited liability of stockholders B) Separate legal existence C) Continuous life D) Government regulation Which one of the following is not an ownership right of a stockholder in a corporation? A) To vote in the election of directors B) To declare dividends on the common stock C) To share in assets upon liquidation D) To share in corporate earnings The authorized stock of a corporation A) only reflects the initial capital needs of the company B) is indicated in its by-laws C) is indicated in its charter D) must be recorded in a formal accounting entry If Norben Company issues 2,000 shares of $5 par value common stock for $140,000, the account A) Common Stock will be credited for $140,000 B) Paid-in Capital in Excess of Par Value will be credited for $10,000 C) Paid-in Capital in Excess of Par Value will be credited for $130,000 ($140,000(2,000 shs*$5/sh par)) D) Cash will be debited for $130,000 Paid-in Capital in Excess of Par Value A) is credited when no-par stock does not have a stated value B) is reported as part of paid-in capital on the balance sheet C) represents the amount of legal capital D) normally has a debit balance Page Cey, Inc issued 5,000 shares of stock at a stated value of $10/share The total issue of stock sold for $15/share The journal entry to record this transaction would include a A) debit to Cash for $50,000 B) credit to Common Stock for $50,000 (5,000 shs * $10/sh stated) C) credit to Paid-in Capital in Excess of Par Value for $25,000 D) credit to Common Stock for $75,000 Treasury stock is A) stock issued by the U.S Treasury Department B) stock purchased by a corporation and held as an investment in its treasury C) corporate stock issued by the treasurer of a company D) a corporation's own stock, which has been reacquired and held for future use The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2012 The dividend is to be paid on August 15, 2012, to stockholders of record on July 31, 2012 The correct entry to be recorded on July 15, 2012, will include a A) debit to Dividends Payable B) debit to Cash Dividends C) credit to Cash D) credit to Cash Dividends A corporation records a dividend-related liability A) on the record date B) on the payment date C) when dividends are in arrears D) on the declaration date 10 Alt Corp issues 2,000 shares of $10 par value common stock at $14 per share When the transaction is recorded, credits are made to: A) Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $8,000 B) Common Stock $28,000 C) Common Stock $20,000 and Paid-in Capital in Excess of Par Value $8,000 (2,000 shs * $10/sh); (2,000 shs * ($14 - $10)) D) Common Stock $20,000 and Retained Earnings $8,000 Page