Financial Accounting Module 05 Quiz

1. Brandon Corporation issues 2,000 shares of $40 par common stock for $43 per share. The amount credited to paid-in capital in excess of par is:

 

The date of declaration creates a(n) ___________ for the corporation.

 

Rick Company has declared a $40,000 cash dividend to shareholders. The company has 5,000 shares of $20-par, 6% preferred stock and 10,000 shares of $15-par common stock. The preferred stock is non-cumulative. How much will be distributed to the preferred and common stockholders on the date of payment?

 

A stock dividend affects the debiting and crediting of the following accounts:

 

Henry and Thomas share gains and losses in the ratio of 2:1. After selling all assets for cash and paying all liabilities, the cash account has $12,000 in it. The capital accounts were as follows:Henry $10,000; Thomas $2,000. How much of the $12,000 cash would Henry receive?

 

A stock dividend will:

 

The following are advantages of the corporate form of business EXCEPT:

 

Shares repurchased by a corporation are referred to as:

 

When a corporation sells treasury stock for more than the purchase price:

 

Return on equity can be compared to: