21. The residual attention in a corporation belongs to the a. Management. B. Creditors. C. Common stockholders. D. Preferred stockholders
22. The pre-emptive right of a common stockholder is the best to a. Re-superstructure proportionately in that company assets top top liquidation. B. Share proportionately in any brand-new issues of share of the exact same class. C. Receive cash dividends before they are dispersed to desired stockholders. D. Exclude wanted stockholders native voting rights.

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23. The pre-emptive right permits a stockholder to a. Share proportionately in any new issues of stock of the exact same class. B. Obtain cash dividends before other classes of stock without the pre-emptive right. C. Sell resources stock ago to the corporation at the choice of the stockholder. D. Get the very same amount of dividends on a portion basis together the preferred stockholders.
24. In a corporate kind of service organization, legal resources is best defined together a. The lot of resources the state of incorporation permits the company to accumulate over its existence. B. The par value of all resources stock issued. C. The quantity of resources the commonwealth government enables a corporation come generate. D. The total funding raised by a corporation in ~ the limits set by the Securities and also Exchange Commission.
25. Shareholder of a service enterprise are claimed to be the residual owners. The hatchet residual owner method that shareholder a. Room entitled come a dividend each year in which the service earns a profit. B. Have actually the legal rights to particular assets the the business. C. Be affected by each other the can be fried risks and also uncertainties and receive the benefits of companies ownership. D. Deserve to negotiate individual contract on instead of of the enterprise.
26. Complete stockholders" same represents a. A insurance claim to details assets added by the owners. B. The maximum amount that have the right to be borrowed by the enterprise. C. A claim against a section of the total assets of one enterprise. D. Just the quantity of revenue that have been maintained in the business.
27. A primary source of stockholders" same is a. Income retained by the corporation. B. Appropriated preserved earnings. C. Contributions by stockholders. D. Both revenue retained through the corporation and also contributions by stockholders.
28. Stockholders" equity is normally classified into two major categories: a. Contributed capital and also appropriated capital. B. Appropriated capital and also retained earnings. C. Kept earnings and also unappropriated capital. D. Earn capital and also contributed capital.
29. The audit problem in a lump sum issuance is the allocation the proceeds in between the great of securities. One acceptable an approach of allocation is the a. Pro forma method. B. Proportional method. C. Incremental method. D. One of two people the proportional method or the incremental method
30. Once a corporation issues its funding stock in payment because that services, the leastappropriate basis because that recording the transaction is the a. Industry value that the services received. B. Par worth of the shares issued. C. Market value of the share issued. D. Any of these offers an proper basis for recording the transaction
31. Direct expenses incurred to offer stock such together underwriting expenses should be accounted for as 1. A reduction of added paid-in capital. 2. An expense of the duration in i m sorry the share is issued. 3. An intangible asset. A. 1 b. 2 c. 3 d. 1 or 3
32. A "secret reserve" will certainly be produced if a. Inadequate depreciation is fee to income. B. A resources expenditure is charged to expense. C. Liabilities are understated. D. Stockholders" same is overstated.
33. I beg your pardon of the following represents the total variety of shares that a copy, group may worry under the terms of its charter? a. Authorized share b. Issued share c. Unissued shares d. Outstanding shares
34. Share that has a resolved per-share amount printed on each stock certificate is referred to as a. Stated value stock. B. Resolved value stock. C. Uniform value stock. D. Par value stock
35. I beg your pardon of the following is no a legal restriction regarded profit distributions by a corporation? a. The amount distributed to owners should be in compliance through the state regulations governing corporations. B. The amount dispersed in any one year have the right to never exceed the net revenue reported for that year. C. Benefit distributions must be formally approved by the board of directors. D. Dividends must be in full covenant with the capital stock contracts regarding preferences and also participation
36. In January 2012, Finley corporation, a newly created company, authorize 10,000 shares of the $10 par usual stock because that $15 per share. OnJuly 1, 2012, Finley corporation reacquired 1,000 share of its exceptional stock because that $12 per share. The salvation of this treasury share a. Decreased full stockholders" equity. B. Increased total stockholders" equity. C. Go not adjust total stockholders" equity. D. Decreased the number of issued shares.
37. Treasury shares are a. Shares hosted as an investment by the treasurer that the corporation. B. Shares hosted as an investment of the corporation. C. Issued and also outstanding shares. D. Issued but not impressive shares
38. When treasury stock is purchased for an ext than the par value of the stock and the cost an approach is offered to account for treasury stock, what account(s) have to be debited? a. Treasury stock because that the par value and paid-in resources in excess of par for the overfill of the purchase price over the par value. B. Paid-in resources in overfill of par for the purchase price. C. Treasury stock because that the acquisition price. D. Treasury stock because that the par value and retained earnings for the overabundance of the acquisition price end the par value.
39. ―Gains" top top sales of treasury share (using the expense method) should be attributed toa. Paid-in capital from treasury stock. B. Capital stock. C. Maintained earnings. D. Various other income
40. Porter Corp. Purchase its very own par value stock top top January 1, 2012 for $20,000 and debited the treasury share account because that the acquisition price. The stock to be subsequently sold for $12,000. The $8,000 difference in between the cost and also sales price should be videotaped as a deduction native a.additional paid-in resources to the level that previous network "gains" indigenous sales of the same class of share are contained therein; otherwise, from maintained earnings. B. Extr paid-in funding without regard as to whether or not there have been previous net "gains" native sales that the same class of stock contained therein. C. Preserved earnings. D. Network income.
a.additional paid-in funding to the level that previous network "gains" native sales that the same course of share are had therein; otherwise, from preserved earnings.
41. Exactly how should a "gain" native the revenue of treasury share be reflected once using the cost technique of recording treasury stock transactions? a. As simple earnings presented on the earnings statement. B. As paid-in capital from treasury stock transactions. C. As rise in the amount shown for typical stock. D. Together an extraordinary item presented on the revenue statement.
42. I beg your pardon of the following finest describes a possible result of treasury stock transactions by a corporation? a. Might increase yet not decrease retained earnings. B. May increase net earnings if the cost an approach is used. C. Might decrease yet not rise retained earnings. D. May decrease however not boost net income.
43.Which of the following attributes of desired stock renders the security more like debt 보다 an same instrument? a. Participating b. Poll c. Redeemable d. Noncumulative
44.The cumulative attribute of preferred stock a. Boundaries the quantity of cumulative dividends to the par value of the wanted stock. B. Requires that dividends not paid in any kind of year should be comprised in a later year before dividends are distributed to typical shareholders. C. Way that the shareholder deserve to accumulate desired stock till it is same to the par worth of typical stock in ~ which time it can be converted into typical stock. D. Allows a desired stockholder to accumulate dividends till they equal the par worth of the stock and also receive the share in location of the cash dividends
b. Needs that dividends not paid in any kind of year should be consisted of in a later on year before dividends are spread to typical shareholders.
45.According to the FASB, redeemable preferred stock need to be a. Contained with common stock. B. Consisted of as a liability. C. Excluded indigenous the stockholders" equity heading.d. Included as a contra item in stockholders" equity.
46. Cumulative desired dividends in arrears should be shown in a corporation"s balance sheet as a. Boost in present liabilities. B. Boost in stockholders" equity. C. A footnote. D. Rise in existing liabilities because that the current portion and long-term liabilities because that the permanent portion.
47.At the day of the jae won statements, typical stock shares issued would exceed usual stock shares superior as a result of the a. Statements of a stock split. B. Statements of a share dividend. C. Purchase of treasury stock. D. Payment in complete of subscribed stock
48.An entry is no made ~ above the a. Day of declaration. B. Day of record. C. Date of payment. D. An entry is make on all of these dates.

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49.Cash dividends room paid ~ above the communication of the variety of shares a. Authorized. B. Issued. C. Outstanding. D. Outstanding less the number of treasury shares
50.Which that the complying with statements around property dividend is nottrue? a. A residential property dividend is generally in the form of securities of other companies. B. A building dividend is likewise called a dividend in kind. C. The bookkeeping for a home dividend have to be based upon the transporting value (book value) the the nonmonetary legacy transferred. D. All of these statements room true
c. The accounting for a residential or commercial property dividend need to be based on the transporting value (book value) of the nonmonetary heritage transferred.