ACC 291 Week 3 Chapter 11 Practice Quiz 1

In this file ACC 291 Week 3 Chapter 11 Practice Quiz 1 you can find right answers on the following questions:

1. Which of the following is not an advantage of a corporation?

2. Which of the following is a disadvantage of a corporation

3. Which of the following statements is false?

4. ABC Corporation issues 1,000 shares of $10 par value common stock at $12 per share. In recording the transaction, credits are made to:

5. XYZ, Inc. sells 100 shares of $5 par value treasury stock at $13 per share. If the cost of acquiring the shares was $10 per share, the entry for the sale should include credits to:

6. In the stockholders' equity section, the cost of treasury stock is deducted from:

7. Preferred stock may have priority over common stock except in:

8. M-Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2011. No dividends were declared in 2009 or 2010. If M-Bot wants to pay $375,000 of dividends in 2011, common stockholders will receive:

9. Entries for cash dividends are required on the:

10. Which of the following statements about small stock dividends is true?

11. All but one of the following is reported in a retained earnings statement. The exception is:

12. A prior period adjustment is:

13. In the stockholders' equity section of the balance sheet, common stock:

14. Which of the following is not reported under additional paid-in capital?

15. Katie Inc. reported net income of $186,000 during 2011 and paid dividends of $26,000 on commonstock. It also has 10,000 shares of 6%, $100 par value, noncumulative preferred stock outstanding. Common stockholders' equity was $1,200,000 on January 1, 2011, and $1,600,000 on December 31, 2011. The company's return on common stockholders' equity for 2011 is:

16. When a stockholders' equity statement is presented, it is not necessary to prepare a(an):

17. The ledger of JFK, Inc. shows common stock, common treasury stock, and no preferred stock. For this company, the formula for computing book value per share is: