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Question 1

The Official Document which Gives a State’s Authorization to Form a Corporation is (are) called:

Question 2

The Fair Market Value of Land and/or Buildings Given as a Gift to Corporations by Communities as an Incentive to Locate in their Area is called _ _ _ by Accountants.

Question 3

Ed Rice has invested $40,000 in a privately held family corporation.  If the Corporation Fails and Declares Bankruptcy, How much does Ed Rice stand to Lose?

Question 4

Which of the following statements correctly describes  the Transferability of  Ownership Rights in a Corporation?  A shareholder:

Question 5

Which of the following is NOT an Advantage of the Corporate Form of Ownership?

Question 6

Dividends are Declared Out Of:

Question 7

Which of the following represents the Largest Number of Common Shares?

Question 8

1.       Treasury Stock is a(n):

Question 9

Dividends in Arrears on Cumulative Preferred Stock:

Question 10

The Correct Sequence of Dividend Dates is:

Question 11

The Effect of a Declaration of a Cash Dividend by the Board of Directors is to:

 ………INCREASE ……………..DECREASE

Question 12

Stock Dividends and Stock Splits have the following Effects on Retained Earnings:

 …STOCK SPLITS ………… STOCK DIVIDENDS

Question 13

The Sale of Bonds Above their Face Value (that is, at a Premium) will:

Question 14

The Discount or Premium on Bonds Payable is shown on the Balance Sheet as an Adjustment to Bonds Payable to arrive at the Carrying Value of the Bonds.  Indicate the appropriate Addition of Subtracting to Bonds Payable:                                                                                

….. Premium on Bonds Pay……. Discount on Bonds Pay.

Question 15

A Lease where the Intent is Temporary Use of the Property by the Lessee With Continued Ownership of the Property by the Lessor is called:

Question 16

Using Debt & Borrowed Funds to Raise the Stockholder’s Rate of Return by Earning a Higher Rate of Return on the Borrowed Money than is Paid in Interest on the Borrowed Money is Called:

Question 17

Carter Corp. issues only common stock.  It has 70,000 shares outstanding; 10,000 shares of treasury stock; and 40,000 unissued shares.  How many shares _ _ _ (# Shares) of common stock is Carter Corp. authorized to issue?

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Question 18

Ajax Corporation issued 10,000 shares of cumulative preferred stock with a par value of $50 per share at a dividend rate of 7%.  It did not pay its preferred stockholders last year but year it has $95,000 in cash to pay its stockholders. What is the amount _ _ _ ($ amount) of dividends the common stockholders will receive this year?

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Question 19

Ingersoll Inc. issued 500,000 shares of $20 par value common stock for $3,600,000.  What amount _ _ _ ($ amount) should be credited to Capital Paid in Excess of Par Value – Common Stock.

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Question 20

Belair Corp issued $500,000 of 8% bonds payable that mature in 10 years.  What is the amount _ _ _ ($ amount) of the semi-annual interest payments on the bonds?

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Question 22

Wavering Corp. used 400,000 shares of $10 par value common stock for $4,000,000.  Its net income before taxes (40% of earnings) was $800,000.  What is the amount _ _ _ ($ amount to the nearest penny 0.00) of earnings per share of common stock?

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Question 23

Suppose instead, Waverly in question 22 issued 300,000 shares of $10 par value common stock for $3,000,000 and it sold $1,000,000 of bonds paying 6% interest. What is the earnings per share on its common stock  _ _ _ ($ amount to the nearest penny 0.00) if the company had a net income of $800,000 before interest and taxes?

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