Eric Ahlers
New member
Help with one, or with all would be awesome!
#1
Authorized stock represents the
a)maximum number of shares that can be issued.
b)number of shares that have been sold.
c)number of shares that are currently held by stockholders.
d)number of shares that have been repurchased by the corporation.
#2
With regard to a corporation's stock, par value is
a)the current market price of the stock.
b)an arbitrary amount that exists to fulfill legal requirements.
c)the amount at which the stock has been repurchased.
d)the amount at which treasury stock can be sold.
#3
Harvey Corporation shows the following in the stockholders' equity section of its balance sheet: The stated value of its common stock is $0.50 and the total balance in the common stock account is $37,500. Also noted is that 5,000 shares are currently designated as treasury stock. The number of shares outstanding is
a)80,000.
b)75,000.
c)72,500.
d)70,000.
#4
Richards Corporation reported the following in the stockholders' equity section of its balance sheet at December 31, 2010:
Common stock, $1 stated value
$10,000
Additional paid-in capital - common
40,000
Retained earnings
25,000
Total contributed capital and retained earnings
$75,000
Less: Treasury stock (at cost $20 per share)
2,000
Total stockholders' equity
$73,000
How many shares of stock are issued?
a)9,000
b)10,000
c)10,100
d)Not enough information to determine.
#5
On January 1, 2008, Copper Kettle Company issued 10,000 shares of 10%, $20 par value cumulative preferred stock. In 2008 and 2009 no dividends were declared on preferred stock. In 2010, Copper Kettle had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. If they have $200,000 available for dividends in 2010, how much could it pay to the common stockholders?
a)$140,000
b)$160,000
c)$180,000
d)$200,000
#6
Cookie King Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital--Common account will increase by
a)$ 10,000.
b)$110,000.
c)$120,000.
d)$130,000.
#7
When a company purchases treasury stock, which of the following statements is true?
a)Treasury stock is considered to be an asset because cash is paid for the stock.
b)The cost of the treasury stock reduces stockholders' equity.
c)Dividends continue to be paid on the treasury stock because it is still issued.
d)Since treasury stock is held by the original issuer, it is no longer considered to be issued.
#8
When a company declares a 3-for-1 stock split, the number of outstanding shares
a)is tripled compared to the number of shares that were outstanding prior to the split.
b)stays the same, but, the number of issued shares triples.
c)is tripled, while the number of issued shares is reduced to one-third of the original issued shares.
d)is reduced, and the number of issued shares is tripled.
#9
Carlson Company reported the following:
Common stock, $5 par, 200,000 shares authorized, 50,000 shares issued and outstanding
What is the effect of issuing 2,000 shares of common stock in exchange for land with a market value of $36,000 if the market value of the common stock is $12 per share?
a)Land increases $24,000.
b)Retained Earnings decreases $10,000.
c)Common Stock increases $36,000.
d)Additional Paid-in Capital - Common increases $24,000.
#10
The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents
a)earnings that have not been distributed to shareholders.
b)cash in the bank.
c)the amount of cash available for dividends.
d)revenues for all past years of operations.
#1
Authorized stock represents the
a)maximum number of shares that can be issued.
b)number of shares that have been sold.
c)number of shares that are currently held by stockholders.
d)number of shares that have been repurchased by the corporation.
#2
With regard to a corporation's stock, par value is
a)the current market price of the stock.
b)an arbitrary amount that exists to fulfill legal requirements.
c)the amount at which the stock has been repurchased.
d)the amount at which treasury stock can be sold.
#3
Harvey Corporation shows the following in the stockholders' equity section of its balance sheet: The stated value of its common stock is $0.50 and the total balance in the common stock account is $37,500. Also noted is that 5,000 shares are currently designated as treasury stock. The number of shares outstanding is
a)80,000.
b)75,000.
c)72,500.
d)70,000.
#4
Richards Corporation reported the following in the stockholders' equity section of its balance sheet at December 31, 2010:
Common stock, $1 stated value
$10,000
Additional paid-in capital - common
40,000
Retained earnings
25,000
Total contributed capital and retained earnings
$75,000
Less: Treasury stock (at cost $20 per share)
2,000
Total stockholders' equity
$73,000
How many shares of stock are issued?
a)9,000
b)10,000
c)10,100
d)Not enough information to determine.
#5
On January 1, 2008, Copper Kettle Company issued 10,000 shares of 10%, $20 par value cumulative preferred stock. In 2008 and 2009 no dividends were declared on preferred stock. In 2010, Copper Kettle had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. If they have $200,000 available for dividends in 2010, how much could it pay to the common stockholders?
a)$140,000
b)$160,000
c)$180,000
d)$200,000
#6
Cookie King Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital--Common account will increase by
a)$ 10,000.
b)$110,000.
c)$120,000.
d)$130,000.
#7
When a company purchases treasury stock, which of the following statements is true?
a)Treasury stock is considered to be an asset because cash is paid for the stock.
b)The cost of the treasury stock reduces stockholders' equity.
c)Dividends continue to be paid on the treasury stock because it is still issued.
d)Since treasury stock is held by the original issuer, it is no longer considered to be issued.
#8
When a company declares a 3-for-1 stock split, the number of outstanding shares
a)is tripled compared to the number of shares that were outstanding prior to the split.
b)stays the same, but, the number of issued shares triples.
c)is tripled, while the number of issued shares is reduced to one-third of the original issued shares.
d)is reduced, and the number of issued shares is tripled.
#9
Carlson Company reported the following:
Common stock, $5 par, 200,000 shares authorized, 50,000 shares issued and outstanding
What is the effect of issuing 2,000 shares of common stock in exchange for land with a market value of $36,000 if the market value of the common stock is $12 per share?
a)Land increases $24,000.
b)Retained Earnings decreases $10,000.
c)Common Stock increases $36,000.
d)Additional Paid-in Capital - Common increases $24,000.
#10
The Retained Earnings account balance for a large corporation is $10,000,000. This amount represents
a)earnings that have not been distributed to shareholders.
b)cash in the bank.
c)the amount of cash available for dividends.
d)revenues for all past years of operations.