Quiz: Warren, Accounting 23e, Chapter 13

http://webquiz.ilrn.com/ilrn/bca/user/quiz-public/run;jsessionid=E6C69...

correct 2.00 20.00%

To email the results to your instructor(s), complete this form:

incorrect 8.00 80.00%

E-mail results to:

Additional message: Your first name: Your last name: Your email address: Required field

Which of the following is a characteristic of a corporation? a. The stockholders have unlimited liability.

b. When stockholders sell their shares, the corporation is dissolved. 1 c. A corporation cannot own property in its name.

d. Cash dividends paid by a corporation are taxable to shareholders.

status: incorrect (0.0) correct: d your answer: a feedback: Incorrect. See pages 575-577 Which one of the following is NOT an advantage of forming a corporation? a. A corporation exists separately from its owners.

b. The corporate form is suited for raising large amounts of money from amounts of capital shareholders. 2 c. A corporation's creditors usually may not go beyond the assets of the corporation to satisfy their claims.

d. Corporations must satisfy many requirements such as those required by the Sarbanes-Oxley Act of 2002.

status: incorrect (0.0) correct: d your answer: b feedback: Incorrect. See page 577 The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 20,000 shares were originally issued and 2,500 were subsequently reacquired. What is the number of shares outstanding? a. 22,500

1 of 4

4/21/2012 4:53 PM

Quiz: Warren, Accounting 23e, Chapter 13

http://webquiz.ilrn.com/ilrn/bca/user/quiz-public/run;jsessionid=E6C69...

b. 17,500 3 c. 20,000

d. 82,500

status: incorrect (0.0) correct: b your answer: a feedback: Incorrect. See page 579 The entry to record the declaration of a common stock dividend would include a debit to: a. Cash.

b. Accounts Receivable. 4 c. Stock Dividends.

d. Common Stock.

status: incorrect (0.0) correct: c your answer: b feedback: Incorrect. See page 586 For the corporation named Chutney, Inc., the net income, the amount of earnings retained in the business, and the amount of earnings distributed are:

The corporation has stock outstanding as follows: 20,000 shares of 1% preferred stock of $50 par, and 50,000 shares of $20 par common stock. What would be the dividend distribution for common shareholders in 2007? 5 a. $0.50 per share

b. $0.75 per share

c. $0.25 per share

d. $0.00 per share

status: incorrect (0.0) correct: d your answer: b feedback: Incorrect. See pages 580 and 585

2 of 4

4/21/2012 4:53 PM

Quiz: Warren, Accounting 23e, Chapter 13

http://webquiz.ilrn.com/ilrn/bca/user/quiz-public/run;jsessionid=E6C69...

A stock that a corporation has once issued and then reacquired is called: a. common stock.

b. preferred stock. 6 c. treasury stock.

d. outstanding stock.

status: incorrect (0.0) correct: c your answer: b feedback: Incorrect. See page 587 Changes in stockholders' equity is reported in the: a. income statement.

b. balance sheet. 7 c. statement of cash flows.

d. statement of stockholders' equity.

status: incorrect (0.0) correct: d your answer: a feedback: Incorrect. See page 592 To reduce the par or stated value of common stock, a corporation issues a proportionate number of additional shares. This is termed a: a. stock repurchase.

b. stock split. 8 c. cash dividend.

d. stock dividend.

status: correct (1.0) correct: b your answer: b feedback: Correct. Earnings Per Share (EPS) can be calculated as follows: a. Market price per share of common stock / Dividends per share of common stock.

3 of 4

4/21/2012 4:53 PM

Quiz: Warren, Accounting 23e, Chapter 13

http://webquiz.ilrn.com/ilrn/bca/user/quiz-public/run;jsessionid=E6C69...

b. Dividends per share of common stock / Market price per share of common stock. 9 c. Stockholders' equity / Market price per share of common stock.

d. (Net income - Preferred dividends) / Number of common shares outstanding.

status: incorrect (0.0) correct: d your answer: a feedback: Incorrect. See page 595 The entry to record the issue for cash of 1,000 shares of $5 par common stock at $25 per share would include: a. a debit to Cash for $25,000, a credit to Common Stock for $5,000, and a credit to Paid-In Capital in Excess of Par for $20,000. b. a debit to Cash for $25,000 and a credit to Common Stock for $25,000. 10 c. a debit to Cash for $25,000 and a credit to Paid-In Capital in Excess of Par for $25,000.

d. a debit to Cash for $5,000 and a credit to Common Stock for $5,000.

status: correct (1.0) correct: a your answer: a feedback: Correct.

4 of 4

4/21/2012 4:53 PM