1) The number of shares of stock a corporation sells to investors are

a. Authorizes shares

b. Issued shares

c. Treasury shares

d. Outstanding shares

2) A corporation issued 20 shares of common stock with $1 par value for $5 per share. The amount of cash the company generated

By issuing the common stock was

a. $5

b. $20

c. $80

d. $100

3) The declaration of a cash dividend

a. Increases cash

b. Decreases cash

c. Increase retained earnings

d. Decreases retained earnings

4) The payment of a cash dividend

a. Decreases dividends payable

b. Increases dividends payable

c. Increases retained earnings

d. Decreases retained earnings

5) A firm that purchases its own stock (treasury stock)

a. Does not change the amount of shareholders equity

b. Increases shareholders equity

c. Decreases shareholders equity

d. Is bankrupt