1. Which of the following is a disadvantage of a corporation

a. the stockholders get to vote on issues important to the corporation in the annual stockholders meeting.

b. it is easy to transfer ownership of the corporation throught he buying and selling of stock on the stock exchange

c. the corporations income is taxed twice.

d. the stockholders are not personaly responsible for the debts of corporation

2. the characteristic of a corporation that any shareholder is not responsible to pay all corporations debts is known as

a. limited liability

b. unlimited liability

c. preemptive right

d. voluntary association

3. pat, wally, sam are partners who share income and losses in a 5:3:2 ratio. Pat decides to retire from the partnership when their capital balances are $30,000 for pat $52,000 for wally and $48,000 for sam. Pat is paid cash of $50,000 to retire. To record pats retirement from the partnership, Pats capital account should be

a. debited for 30,000

b. debited for 50,000

c. credited for 30,000

d. credited for 50,000

4. a corporation sold 15,000 shares of its $10 par value common stock at a cash price of $12. The entry to record this transactions would include

a. a debit to paid in capital in excess of par value, common stock for 30,000

b. a debit to cash for 150,000

c. a credit to common stock for 150,000

d. a credit to common stock for 180,000

5. mary nelson contributed the following to form a partnership cash-22,000 equipment 40,000 vehicle 28,000 and the partnership assumed the apyments on a 20,000 note payable of nelsons. How much should be credited to mary nelson, capital to show her investment in the partnership?

a. 50,000

b. 70,000

c. 22,000

d. 90,000

6. a corporation has 300,000 shares of $6 per value common stock authorized, and issued and outstanding. if the corporation declares a 3 for 1 stock split, how many shares will be outstanding after the split?

a. 300,000 shares

b. 900,000 shares

c. 100,000 shares

d. 1,200,000 shares

7. a company issues 5%, 5 year bonds w a par value of 1,000,000 and semiannual interest payments. On the issue date the annual market rate for these bonds is 6%. what is the bonds issue (selling) price, assuming the present value of $1 factor for 3% and 10 semi annual periods is .7441 and the present value of an annuity factor for the same rate and period is 8.302?

a. $957,355

b. $1,000,000

c. $1,250,000

d. $786,745

8. When a partnership is liquidated:

a. noncash assets are converted to cash

b. libailities are paid or settles

c. any remaining cash is distributred to partnersy based on their capital balances

d. All choices are correct

9. On june 20, Blaney company purchased 2,000 shares of ABC company common stock for $32 per share plus a $75 brokerage fee. These shares are categorized as a short term investment in trading securities. On september 8, blaney company receives $0.60 per share in dividends from ABC company. A correct entry to record the receipt of the dividend is:

a. Debit cash for $1,200

b. debit dividend revenue for $1,200

c. debit common stock for $38,400

d. debit interest revenue for $1,200

10. A company declared a $0.50 per share cash dividend. The company has 20,000 shares authroized, 9,000 shares issued and 8,000 shares of common stock outstanding.the journal entry to record the dividend declaration is

a. debit common dividends payable $4500; credit cash $4500

b. debit common dividends payable $4000; credit cash $4000

c. debit retained earnings $4500; redit common dividends payable $4500

d. Debit retained earnings $4,000; credit common dividends payable $4,000

11. A bond with a face amount of 400,000 was sold at 105. How much cash will be received when the bonds are sold?

a. 420,000

b. $380,000

c. $400,000

d. $405,000

12. chase and hatch are partners and share equally in income or loss. chases current capital balance is $135,000 and Hatchs is $120,000. chase and hatch agree to accept flax with a 30% interest in the partnership. Flax invests $115,000 in the partnership. The amount credited to Flax's capital account is:

a. $111,000

b. $115,000

c. $92,500

d. $120,000