1. Organization expenses include all of the following except a. legal fees b. fees paid to obtain a state charter c. promoter fees d. depreciation expense
1. Organization expenses include all of the following except
a. legal fees
b. fees paid to obtain a state charter
c. promoter fees
d.
2. the general rights of common shareholders includes the preemptive right
true
false
3. Outstanding stock refers to the number of shares of stock that a corporation's charter allows it to sell
true
false
4. stockholders' or sharholders' equity ordinarily consists both paid-in capital and
true
false
5. advantages of a C- corporation ordinarily include ease of capital accumulation, ready transferability of ownership rights, and both a limited life of the corporation and limited liability of the shareholders
true
false
6. When a company makes a net profit, retained earnings is credited
true
false
7. a corporation's par value value of its stock establishing minimum legal capital
true
false
8. in recording a small stock dividend, retained earnings is debited while in recording a large stock dividend, retained earnings is not debited
true
false
9. a small stock dividend is defined by US GAAP by a dividend involving 25% of the issued number of common shares
true
false
10. common stock dividend distributable is a temporary liability
true
false
11. Date of declaration, date of record and date of payment all involve prepaing journal entries
true
false
12. When par value common stock is issued at a premium, the
true
false
13 The features small stock dividends, large stock dividends, large stock dividends and stock splits all show decreases in retained earnings
true
false
14 The features small stock dividends, large stock dividends, large stock dividends and stock splits are similar in that all three are documented with journal entries
true
False
15. The mosaic corporation issued 10000 shares of $50 par, 9%
a. The company debits 530000 in cash and pays 45000 in cash dividends annually
B. the company debits 530000 in cash and pays 50000 in cash dividends annually
c. the company debits 530000 in cash and pays 9000 annually in cash dividends
d. the company debits 530000 in cash and credits preferred stock 530000
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