Fin 534 quiz 3 (15 questions with answers) 99,99 % scored
FIN 534 Quiz 3 (15 questions with answers) 99,99 % Scored PLEASE DOWNLOAD HEREQuestion 1Which one of the following is not an ownership right of a stockholder in acorporation?To share in assets upon liquidation.To share in corporate earnings.To declare dividends on the common stock.To vote in the election of directors.Question 2A corporation has the following account balances: Common stock, $1 par value,$30,000; Paid-in Capital in Excess of Par Value, $1,350,000. Based on thisinformation, theaverage price per share issued is $4.60.number of shares outstanding are 1,380,000.number of shares issued are 30,000.legal capital is $1,380,000.Question 3If stock is issued for a noncash asset, the asset should be recorded on the booksof the corporation atfair market value.a nominal amount.cost.zero.
Question 4Which of the following represents the largest number of common shares?Outstanding sharesTreasury sharesIssued sharesAuthorized sharesQuestion 5A corporation purchases 20,000 shares of its own $20 par common stock for $35per share, recording it at cost. What will be the effect on total stockholdersequity?Increase by $400,000Increase by $700,000Decrease by $700,000Decrease by $400,000Question 6The acquisition of treasury stock by a corporationhas no effect on total assets and total stockholders equity.requires that a gain or loss be recognized on the income statement.increases its total assets and total stockholders equity.decreases its total assets and total stockholders equity.Question 7Which of the following is not a right or preference associated with preferredstock?First claim to dividends.Preference to corporate assets in case of liquidation.The right to vote.
To receive dividends in arrears before common stockholders receive dividends.Question 8If preferred stock is cumulative, thepreferred dividends not declared in a given year are called dividends in arrears.preferred shareholders and the common shareholders receive equal dividends.preferred shareholders and the common shareholders receive the same totaldollar amount of dividends.common shareholders will share in the preferred dividends.Question 9When common stock is issued for services or non-cash assets, cost should beeither the fair market value of the consideration given up or the considerationreceived, whichever is more clearly evident.the book value of the common stock issued.only the fair market value of the consideration given up.only the fair market value of the consideration received.Question 10Common Stock Dividends Distributable is classified as a(n)asset account.stockholders equity account.expense account.liability account.Question 11Indicate the respective effects of the declaration of a cash dividend on thefollowing balance sheet sections:Total Assets Total Liabilities Total Stockholders EquityIncrease Decrease No change
Decrease No change IncreaseNo change Increase DecreaseDecrease Increase DecreaseQuestion 12Which of the following show the proper effect of a stock split and a stockdividend?Item Stock Split Stock DividendTotal paid-in capital Increase IncreaseTotal retained earnings Decrease DecreaseTotal par value (common) Decrease IncreasePar value per share Decrease No changeQuestion 13Restricting retained earnings for the cost of treasury stock purchased is alegal restriction.contractual restriction.stock restriction.voluntary restriction.Question 14Retained earnings are occasionally restrictedto set aside cash for dividends.due to contractual loan restrictions.to keep the legal capital associated with paid-in capital intact.if preferred dividends are in arrearsQuestion 15Prior period adjustments
may only decrease retained earnings.do not affect retained earnings.may only increase retained earnings.may either increase or decrease retained earnings.