1. All of the following statements are considered a disadvantage of the corporate form of organization except for: a. Additional taxes b. Government regulations C. Limited liability of stockholders d. Separation of ownership and management 2. On the dividend date of record, a dividend becomes a current obligation. a. b. no entry is required. C. an entry may be required if it is a stock dividend. d. Dividends Payable is debited. 3. Assume that all balance sheet amounts for Carolina Company represent average balance figures. Stockholders' equity-common Total stockholders' equity Sales revenue Net income Number of shares of common stock outstanding Common stock dividends What is earnings per share for Carolina? a. $1.90 b. $1.80 C. $1.20 d. $2.00 4. If Baylor Company issues 8,000 shares of $5 par value common stock for $280,000, a. Common Stock will be credited for $280,000. b. Paid-In Capital in Excess of Par will be credited for $40,000. c. Paid-In Capital in Excess of Par will be credited for $240,000. d. Cash will be debited for $240,000. (Hint: Write out the journal entryll) $360,000 800,000 400,000 a. A premium. b. A discount. 76,000 40,000 24,000 5. A company is offering $1,000,000 worth of 10 year, 11% bonds for sale. The current market rate for bonds of a similar nature is 9%. The bonds will most likely be sold at: c. Face value. d. Cannot be determined from the information given.

1. All of the following statements are considered a disadvantage of the corporate form of organization except for: a. Additional taxes b. Government regulations c. Limited liability of stockholders d. Separation of ownership and management 2. On the dividend date of record, a. a dividend becomes a current obligation. b. no entry is required. c. an entry may be required if it is a stock dividend. d. Dividends Payable is debited. 3. Assume that all balance sheet amounts for Carolina Company represent average balance figures. What is earnings per share for Carolina? a. $1.90 b. $1.80 c. $1.20 d. $2.00 4. If Baylor Company issues 8,000 shares of $5 par value common stock for $280,000, a. Common Stock will be credited for $280,000. b. Paid-In Capital in Excess of Par will be credited for $40,000. c. Paid-In Capital in Excess of Par will be credited for $240,000. d. Cash will be debited for $240,000. write ovt the journal entrili) 5. A company is offering $1,000,000 worth of 10 year, 11% bonds for sale. The current market rate for bonds of a similar nature is 9%. The bonds will most likely be sold at: a. A premium. b. A discount. c. Face value. d. Cannot be determined from the information given