FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Proprietorships, partnerships, and Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

A corporation must record a liability for cash dividends on the date of record.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

On January 2,Year 1,Torres Corporation issued 20,000 shares of $10 par-value common stock for $11 per share.Which of the following statements is true?

A) The Common Stock account will increase by $220,000.
B) The Cash account will increase by $200,000.
C) Total stockholders' equity will increase by $200,000.
D) The Paid-in Capital in Excess of Par Value account will increase by $20,000.

E) B) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

The most commonly reported measure of a company's value is earnings per share.

Curtain Co.paid dividends of $6,000,$12,000,and $20,000 during Year 1,Year 2,and Year 3,respectively.The company had 1,000 shares of 5%,$200 par value preferred stock outstanding that paid a cumulative dividend.What is the total amount of dividends paid to common shareholders during Year 3?

Napoli Industries had net income for Year 2 of $650,000.Napoli had an average number of shares outstanding at the end of the year of 500,000 shares.On January 1,Year 2,the market price of Napoli's stock was $20 per share.On December 31,Year 2,the market price was $22 per share.What is the price-earnings ratio for Napoli at the end of Year 2?

Establishing a sole proprietorship generally requires the owner to get a charter from the state government.

Ogilvie Corp.issued 12,000 shares of no-par stock for $40 per share.Ogilvie was authorized to issue 35,000 shares.What effect will this event have on the elements of the company's financial statements?

All corporations are subject to extensive government regulation.

Van Buren Corporation issued 5,000 shares of $6 par common stock for $24 per share.For this transaction,Common Stock should be increased by $120,000.

At the time that Kirby Company issued a 2-for-1 stock split,the company had 5,000 shares of $6 par value common stock outstanding.Stockholders' equity also included $15,000 of paid in capital in excess of par value-common and $22,000 of retained earnings.Which of the following statements regarding the impact of the stock split is true?

Lack of ease in transferability of ownership is one of the disadvantages of the corporate form of business organization.

How will the May 1 payment of the dividend affect the elements of the financial statements?

At the end of the accounting period,Houston Company had $12,000 of common stock,paid-in capital in excess of par value-common of $11,000,retained earnings of $12,000,and $4,000 of treasury stock.What is the total amount of stockholders' equity?

Which of the following would not be a reason to expect an increase in the market price of the stock of Carlyle Corporation?

What is the expected impact of a 2-for-1 stock split?

Which of the following statements about Treasury Stock is correct?

Preferred stockholders' claims to a corporation's assets take precedence over the claims of some creditors.

Blair Scott started a sole proprietorship by depositing $75,000 cash in a business checking account.During the accounting period,the business borrowed $30,000 from a bank,earned $18,000 of net income,and Scott withdrew $12,000 cash from the business.Based on this information,what is the balance in Scott's capital account at the end of the accounting period?

How would the declaration of a cash dividend affect the calculation of a company's price-earnings ratio? (Hint: Do not consider any change in the market price of the stock that might occur because of the declaration of the dividend.)

A distribution by a sole proprietorship to the owner is called a withdrawal.