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

a) Authorized shares

b) Issued shared

c) Treasury shares

d) Outstanding shares

2) A corporation issued 20 shares of common stock with a $ 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) Increases 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