1. are the owners of a corporation and is controlled by the a. Stockholders; Board of Directors b. Board of Directors; Stockholders c. Stockholders; Stockholders d. None of these are correct. a 2. All of the following are considered advantages of the corporate form of business except a. limited liability b. double taxation c. perpetual life d. None of these are correct. are distributions of a corporation's earnings to stockholders. a. Profits b. Revenues C. Stocks d. Dividends d 2. A debit balance in Retained Earnings is called a. deficit b. surplus c. net loss d. None of these are correct. 1. If the stock is issued for a price that is more than its stated price, the stock is said to be sold at a. premium b. discount c. par value d. None of these are correct 2. A joumal entry to record the issuance of preferred stock above par would include a a. credit to Cash b. credit to Paid-In Capital in Excess of Par C. debit to Preferred Stock d. debit to Paid-in Capital in excess of Par 3. On March 10, Barney Corporation issued for cash 10,000 shares of no-par common stock at $40. The Journal entry to record this transaction would include a 3. debit to Cash for $100,000 b. credit to Cash for $400,000 credit to Common Stock for $400,000 d. None of these are correct 1. The |_ Is the date the board of directors formally authorizes the payment of the dividend. a. declaration date b. record date c. payment date d. None of these are correct. 2. A stock dividend the assets, liabilities, or total stockholders' equity of a corporation. a. does not change b. Increases c. decreases d. None of these are correct. a 3. The declaration date journal entry for a cash dividend would include a. a debit to Cash b. a credit to Cash c. a credit to Cash Dividends Payable d. no entry is needed on this date 1. A $20 par value stock in a 2:1 stock split will yield a new par value of a. $40 b. $30 c. $10 d. None of these are correct. 1. On February 10, the corporation purchases back 2,000 shares of its own common stock for $50 per share. The entry to record the purchase would include a a. debit to Cash for $100,000 b. credit to Treasury Stock for $100,000 c. debit to Treasury Stock for $100,000 d. debit to Common Stock for $100,000 2. A corporation may reacquire its own stock for which of the following reasons? a. To provide shares for resale to employees. b. To reissue as bonuses to employees. c. To support the market price of the stock. d. All of these are correct. 1. Restrictions of retained earnings may be classified as a. legal b. contractual c. discretionary d. All of these are correct. d 2. A corporation has a $500,000 beginning balance in Retained Earnings. Its net income for the year was $200,000. Sales revenue amounted to $1,000,000, and dividends declared and paid by year-end amounted to $100,000. What was the ending balance in Retained Earnings? a. $600,000 b. $1,400,000 c. $700,000 d. $1,200,000 3. On the balance sheet, the balance of Treasury Stock is a. added to stockholders' equity b. deducted from stockholders' equity c. disclosed only in the notes d. not reported . EPS is calculated as net income divided by the number of shares outstanding . revenue divided by number of shares issued and outstanding E.net Income less preferred dividends divided by average number of common shares outstanding during the period 3. None of these are correct a 2. An increase in EPS from one year to the next indicates a. an unfavorable trend b. a favorable trend c. a neutral trend d. None of these are correct b