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A significant disadvantage of a corporation is:(a) limited licapability of stockholders.(b) added taxes.(c) transferable ownership legal rights.(d) separate legal visibility.
Which of the complying with statements is false?(a) Ownership of prevalent stock offers the owner a voting ideal.(b) The stockholders" equity area starts through a paid-in resources area.(c) The authorization of resources stock does not bring about a formal audit enattempt.(d) Par value and industry price of a company"s stock are constantly the exact same.
ABC Corporation problems 1,000 shares of $10 par worth prevalent stock at $12 per share. In recording the transaction, credits are made to:(a) Common Stock $10,000 and also Paid-in Capital in Excess of Stated Value $2,000.(b) Typical Stock $12,000.(c) Common Stock $10,000 and Paid-in Capital in Excess of Par $2,000.(d) Common Stock $10,000 and also Retained Salaries $2,000.
Preferred stock might have actually priority over common stock other than in:(a) dividends.(b) assets in the occasion of liquidation.(c) cumulative dividend functions.(d) voting.
XYZ, Inc. sells 100 shares of $5 par worth treasury stock at $13 per share. If the price of acquiring the shares was $10 per share, the entry for the sale should encompass credits to:(a) Treasury Stock $1,000 and also Paid-in Capital from Treasury Stock $300.(b) Treasury Stock $500 and also Paid-in Capital from Treasury Stock $800.(c) Treasury Stock $1,000 and also Retained Salaries $300.(d) Treasury Stock $500 and Paid-in Capital in Excess of Par $800.
In the stockholders" equity section, the price of treasury stock is deducted from:(a) full paid-in capital and kept revenue.(b) maintained earnings.(c) total stockholders" equity.(d) prevalent stock in paid-in funding.
M-Bot Corporation has 10,000 shares of 8%, $100 par worth, cumulative wanted stock superior at December 31, 2017. No dividends were asserted in 2015 or 2016. If M-Bot desires to pay $375,000 of dividends in 2017, prevalent stockholders will receive:(a) $0.(b) $295,000.(c) $215,000.(d) $135,000.
Entries for cash dividends are required on the:(a) declaration day and the payment day.(b) document date and the payment day.(c) declaration date, document date, and also payment date.(d) declaration date and the record day.
Which of the complying with statements about small stock dividends is true?(a) A delittle to Retained Incomes for the par value of the shares issued must be made.(b) A little stock dividfinish decreases full stockholders" equity.(c) Market price per share should be assigned to the dividfinish shares.(d) A tiny stock dividfinish ordinarily will have an effect on par worth per share of stock.
All yet one of the following is reported in a preserved revenue statement. The exemption is:(a) cash and stock dividends.(b) net earnings and also net loss.(c) sales revenue.(d) prior duration adjustments.
A prior duration adjustment is:(a) reported in the revenue statement as a nontypical item.(b) a correction of an error that is taped straight to kept earnings.(c) reported straight in the stockholders" equity area.(d) reported in the preserved earnings statement as an adjustment of the finishing balance of kept revenue.
In the stockholders" equity area of the balance sheet, widespread stock:(a) is provided before desired stock.(b) is included to full capital stock.(c) is component of paid-in capital.(d) is part of additional paid-in capital.
Which of the adhering to is not reported under extra paid-in capital?(a) Paid-in capital in excess of par.(b) Usual stock.(c) Paid-in funding in excess of declared worth.(d) Paid-in resources from treasury stock.
Katie Inc. reported net income of $186,000 during 2017 and also passist dividends of $26,000 on prevalent stock. It also has actually 10,000 shares of 6%, $100 par value, noncumulative desired stock impressive and also phelp dividends of $60,000 on desired stock. Usual stockholders" equity was $1,200,000 on January 1, 2017, and also $1,600,000 on December 31, 2017. The company"s rerevolve on common stockholders" equity for 2017 is:(a) 10.0%.(b) 9.0%.(c) 7.1%.(d) 13.3%.
When a stockholders" equity statement is presented, it is not essential to prepare a (an):(a) kept income statement.(b) balance sheet.(c) earnings statement.(d) None of the above.
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The ledger of JFK, Inc. reflects widespread stock, widespread treasury stock, and also no desired stock. For this company, the formula for computing book value per share is:(a) full paid-in capital and kept revenue split by the number of shares of prevalent stock issued.(b) common stock split by the number of shares of prevalent stock issued.(c) full stockholders" equity separated by the variety of shares of widespread stock exceptional.(d) total stockholders" equity divided by the variety of shares of prevalent stock issued.