Question 1

If a corporation's stock is traded on the major stock exchanges, the corporation must generally report periodically to a federal agency known as the ____________________.

Accepted Answer

The answer of If a corporation's stock is traded on...

Question 2

Par value of stock represents the __________________ per share that must be retained in the business for the protection of corporate ___________________.

Accepted Answer

The answer of Par value of stock represents the __________________...

Question 3

A corporation's own stock that has been reacquired by the corporation but not canceled is called ___________________ and is deducted from total _______________________ on the balance sheet.

Accepted Answer

The answer of A corporation's own stock that has been...

Question 4

If stock is issued in exchange for noncash assets, the assets should be valued at the ____________________ of the consideration ___________________ or the assets ____________________, whichever is more clearly evident.

Accepted Answer

The answer of If stock is issued in exchange for...

Question 5

Match the items below by entering the appropriate code letter in the space provided.  
____ 1. Net income retained in the corporation.
____ 2. The amount that must be retained in the business for the protection of creditors.
____ 3. Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
____ 4. Creditors only have corporate assets to satisfy their claims.
____ 5. Responsible to stockholders for corporate activity.
____ 6. The amount assigned to each share of stock in the corporate charter.
____ 7. Unit of ownership in a corporation.
____ 8. Enables stockholders to maintain their same percentage ownership when new shares are issued.
____ 9. Corporation's own stock that has been reacquired by the corporation but not retired.
____ 10. Total amount paid-in on capital stock.

Accepted Answer

The answer of Match the items below by entering the...

Question 6

A corporation has a separate __________________________ apart from its owners.

Accepted Answer

The answer of A corporation has a separate __________________________ apart...

Question 7

Stockholders elect the _______________, who in turn hire the ______________ of the company who have day to day responsibility for running the corporation.

Accepted Answer

The answer of Stockholders elect the _______________, who in turn...

Question 8

The _______________ feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends.

Accepted Answer

The answer of The _______________ feature of preferred stock gives...

Question 9

The paid-in capital section of the balance sheet consists of two classifications: ______________________ and ______________________.

Accepted Answer

The answer of The paid-in capital section of the balance...

Question 10

Land appraised at $60,000 is purchased by issuing 1,000 shares of $25 par value common stock. The market price of the shares at the time of the exchange, based on active trading in the securities market, is $75 per share. Should the land be recorded at $25,000, $60,000, or $75,000? Explain.

Accepted Answer

The answer of Land appraised at $60,000 is purchased by...

Question 11

Define par value, and discuss its significance in accounting.

Accepted Answer

The answer of Define par value, and discuss its significance...

Question 12

Preferred stock has contractual provisions that give it a preference over common stock as to ___________________ and to ___________________ in the event of liquidation.

Accepted Answer

The answer of Preferred stock has contractual provisions that give...

Question 13

Stockholders generally have the right to share in corporate _______________ and in ______________ upon liquidation.

Accepted Answer

The answer of Stockholders generally have the right to share...

Question 14

The major advantages of the corporate form of organization include (1) limited _________________ of owners, (2) continuous ____________________ and (3) ease of transferring ___________________.

Accepted Answer

The answer of The major advantages of the corporate form...

Question 15

The stockholders' equity section of a corporation's balance sheet is generally divided in two major sections: (1) _____________ and (2) _______________.

Accepted Answer

The answer of The stockholders' equity section of a corporation's...

Quiz 13: Corporations: Organization and Capital Stock Transactions

If a corporation's stock is traded on the major stock exchanges, the corporation must generally report periodically to a federal agency known as the ____________________.

Par value of stock represents the per share that must be retained in the business for the protection of corporate _.

A corporation's own stock that has been reacquired by the corporation but not canceled is called _ and is deducted from total _____ on the balance sheet.

If stock is issued in exchange for noncash assets, the assets should be valued at the __________ of the consideration _ or the assets ____________, whichever is more clearly evident.

A corporation has a separate __________________________ apart from its owners.

Stockholders elect the _, who in turn hire the of the company who have day to day responsibility for running the corporation.

The _______________ feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends.

The paid-in capital section of the balance sheet consists of two classifications: and .

Land appraised at $60,000 is purchased by issuing 1,000 shares of $25 par value common stock. The market price of the shares at the time of the exchange, based on active trading in the securities market, is $75 per share. Should the land be recorded at $25,000, $60,000, or $75,000? Explain.

Define par value, and discuss its significance in accounting.

Preferred stock has contractual provisions that give it a preference over common stock as to _ and to _ in the event of liquidation.

Stockholders generally have the right to share in corporate _ and in upon liquidation.

The major advantages of the corporate form of organization include (1) limited _ of owners, (2) continuous and (3) ease of transferring ___.

The stockholders' equity section of a corporation's balance sheet is generally divided in two major sections: (1) _ and (2) ___.