1. Which of the following is NOT a right of stockholders

A

Unlimited liability

B

Vote at Stockholders meetings

C

Buy or sell stock

D

Receive dividends

2. Pamela and Penelope have a partnership agreement with the following

conditions:

Pamela receives $75,000 and Penelope receives $90,000 as annual salaries.

Each partner is allowed an annual interest allowance of 10% of the beginning

of year capital balance.

Any remaining balance of income or loss is allocated equally.

Beginning capital balances equal $800,000 for Pamela and $700,000 for Penelope.

Net Income for 2005 is $400,000.

The distribution of net income to the two partners is:

Pamela

Penelope

A

75,000

90,000

B

80,000

70,000

C

155,000

160,000

D

197,500

202,500

3. On May 2, Stevens agrees to sell Edwards $100,000 of his partnership interest for

$200,000 cash.

A

Steven's capital account will be credited for $100,000

B

Steven's capital account will be credited for $200,000

C

Edward's Capital account will be credited for $200,000

D

Edward's Capital account will be credited for $100,000

4. Stevens & Edwards agree to add Philips to their parternship upon an investment

of $100,000 in equipment

A

Total partnership capital will increase by $100,000

B

Stevens & Edwards capital will decrease by $50,000 each

C

Stevens & Edwards capital will increase by $50,000 each

D

Total Assets will decrease by $100,000

5. Kat and Stevens agree to accept Nugent as a partner upon his investment of $50,000 cash.

Nugent is to receive a 20% ownership interest in the new partnership. Any

bonus is attributable to the existing partners and is shared equally.

Kat and Stevens combined capital (before Nugents investment) totals $180,000.

A

Nugent's credit to Capital equals $50,000

B

Nugent's credit to Capital equals $46,000

C

Total Partnership capital would increase by $46,000

D. Total Partnership capital would decrease by $50,000

6. A small stock dividend will:
A	Increase Common Stock Dividend Distributable
B	Increase the total stockholder's equity
C	Increase the par or stated value per share
D	Decrease total assets