Question 1

Treasury Stock is a(n)

Accepted Answer

A)  contra asset account.
B)  retained earnings account.
C)  asset account.
D)  contra stockholders' equity account.E) B) and D)
F) B) and C)

Question 2

Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

Treasury stock should be reported in the financial statements of a corporation as a(n)

Accepted Answer

A)  investment.
B)  liability.
C)  deduction from total paid-in capital.
D)  deduction from total paid-in capital and retained earnings.E) A) and D)
F) B) and C) B

Question 4

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at

Accepted Answer

A)  fair market value.
B)  cost.
C)  zero.
D)  a nominal amount.E) A) and B)
F) A) and C)

Question 5

If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation.

Accepted Answer

A) True 
 B)False

Question 6

In a partnership the same basis of division usually applies to both net income and net loss.

Accepted Answer

A) True 
 B)False

Question 7

The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is

Accepted Answer

A)  the sole proprietorship.
B)  the partnership.
C)  the corporation.
D)  not known.E) A) and B)
F) C) and D)

Question 8

Which one of the following is not a characteristic of a partnership?

Accepted Answer

A)  Co-ownership of property
B)  Mutual agency
C)  Unlimited life
D)  Unlimited liabilityE) All of the above
F) None of the above

Question 9

In a partnership the basis of division of net income or net loss is usually referred to as

Accepted Answer

A)  the profit and loss ratio.
B)  the income and loss ratio.
C)  the income ratio.
D)  all of the above.E) A) and B)
F) A) and C)

Question 10

Which one of the following is an advantage of a partnership?

Accepted Answer

A)  Mutual agency
B)  Ease of decision making
C)  Limited life
D)  Unlimited liabilityE) All of the above
F) C) and D)

Question 11

Baden Bagels Inc.has 5,000 shares of 8%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2005.There were no dividends declared in 2004.The board of directors declares and pays a $50,000 dividend in 2005.What is the amount of dividends received by the common stockholders in 2005?

Accepted Answer

A)  $0
B)  $40,000
C)  $50,000
D)  $10,000E) All of the above
F) B) and C)

Question 12

In a partnership mutual agency means

Accepted Answer

A)  both partners must sign a contract in order for it to be binding.
B)  each partner acts on behalf of the partnership when engaging in partner business.
C)  each partner must consult the other before making any major business decisions.
D)  the act of any partner is not binding on all other partners, especially when partners act beyond the scope of their aurthority.E) A) and B)
F) A) and C)

Question 13

The chief accounting officer in a company is known as the

Accepted Answer

A)  controller.
B)  treasurer.
C)  vice-president.
D)  president.E) None of the above
F) B) and C)

Question 14

In a partnership each partner is personally and individually liable for all partnership liabilities.

Accepted Answer

A) True 
 B)False

Question 15

The effect of a stock dividend is to

Accepted Answer

A)  decrease total assets and stockholders' equity.
B)  change the composition of stockholders' equity.
C)  decrease total assets and total liabilities.
D)  increase the book value per share of common stock.E) A) and C)
F) None of the above

Question 16

Which one of the following is not an ownership right of a stockholder in a corporation?

Accepted Answer

A)  To vote in the election of directors
B)  To declare dividends on the common stock
C)  To share in assets upon liquidation
D)  To share in corporate earningsE) C) and D)
F) All of the above

Question 17

In a partnership each partner's initial investment should be recorded at the fair _______ value of the assets at the date of their transfer to the partnership.

Accepted Answer

A)  book
B)  market
C)  investment
D)  assetE) A) and B)
F) A) and C) C

Question 18

Treasury stock is

Accepted Answer

A)  stock issued by the U.S.Treasury Department.
B)  stock purchased by a corporation and held as an investment in its treasury.
C)  corporate stock issued by the treasurer of a company.
D)  a corporation's own stock which has been reacquired but not canceled.E) C) and D)
F) None of the above

Question 19

Which of the following is not a significant date with respect to dividends?

Accepted Answer

A)  The declaration date
B)  The incorporation date
C)  The record date
D)  The payment dateE) C) and D)
F) B) and D) D

Question 20

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

Accepted Answer

A) True 
 B)False

Exam 14: Sole Proprietorships,partnerships, Andcorporations

Treasury Stock is a(n)

Correct Answer
verified

Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement.

Correct Answer
verified

Treasury stock should be reported in the financial statements of a corporation as a(n)

Correct Answer
verified
B

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at

Correct Answer
verified

If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation.

Correct Answer
verified

In a partnership the same basis of division usually applies to both net income and net loss.

Correct Answer
verified

The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is

Correct Answer
verified

Which one of the following is not a characteristic of a partnership?

Correct Answer
verified

In a partnership the basis of division of net income or net loss is usually referred to as

Correct Answer
verified

Which one of the following is an advantage of a partnership?

Correct Answer
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Correct Answer
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In a partnership mutual agency means

Correct Answer
verified

The chief accounting officer in a company is known as the

Correct Answer
verified

In a partnership each partner is personally and individually liable for all partnership liabilities.

Correct Answer
verified

The effect of a stock dividend is to

Correct Answer
verified

Which one of the following is not an ownership right of a stockholder in a corporation?

Correct Answer
verified

In a partnership each partner's initial investment should be recorded at the fair _______ value of the assets at the date of their transfer to the partnership.

Correct Answer
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C

Treasury stock is

Correct Answer
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Which of the following is not a significant date with respect to dividends?

Correct Answer
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D

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

Correct Answer
verified

Exam 14: Sole Proprietorships,partnerships, Andcorporations

Treasury Stock is a(n)

Correct AnswerverifiedShow Answer

Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement.

Correct AnswerverifiedShow Answer

Treasury stock should be reported in the financial statements of a corporation as a(n)

Correct AnswerverifiedB

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at

Correct AnswerverifiedShow Answer

If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation.

Correct AnswerverifiedShow Answer

In a partnership the same basis of division usually applies to both net income and net loss.

Correct AnswerverifiedShow Answer

The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is

Correct AnswerverifiedShow Answer

Which one of the following is not a characteristic of a partnership?

Correct AnswerverifiedShow Answer

In a partnership the basis of division of net income or net loss is usually referred to as

Correct AnswerverifiedShow Answer

Which one of the following is an advantage of a partnership?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a partnership mutual agency means

Correct AnswerverifiedShow Answer

The chief accounting officer in a company is known as the

Correct AnswerverifiedShow Answer

In a partnership each partner is personally and individually liable for all partnership liabilities.

Correct AnswerverifiedShow Answer

The effect of a stock dividend is to

Correct AnswerverifiedShow Answer

Which one of the following is not an ownership right of a stockholder in a corporation?

Correct AnswerverifiedShow Answer

In a partnership each partner's initial investment should be recorded at the fair _______ value of the assets at the date of their transfer to the partnership.

Correct AnswerverifiedC

Treasury stock is

Correct AnswerverifiedShow Answer

Which of the following is not a significant date with respect to dividends?

Correct AnswerverifiedD

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

Correct AnswerverifiedShow Answer

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B

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C

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D

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