6. At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the

a.declaration of a stock split.

b.declaration of a stock dividend.

c.purchase of treasury stock.

d.payment in full of subscribed stock.

7. A company issued rights to its existing shareholders to purchase, for 30 per share, unissued shares of 15 par value common stock. When the rights lapse,

a.Additional Paid-In Capital will be credited.

b.Stock Rights Outstanding will be debited.

c.Gain on Lapse of Stock Rights will be credited.

d.no entry will be made.

8. Select the statement that is incorrect concerning the appropriations of retained earnings.

a.Appropriations of retained earnings do not change the total amount of stockholders' equity.

b.Appropriations of retained earnings reflect funds set aside for a designated purpose, such as plant expansion.

c.Appropriations of retained earnings can be made as a result of contractual requirements.

d.Appropriations of retained earnings can be made at the discretion of the board of directors.

9. When a property dividend is declared and the book value of the property exceeds its market value, the dividend is recorded at the

a.market value of the property at the date of distribution.

b.book value of the property at the date of declaration.

c.book value of the property at the date of distribution if it still exceeds the market value of the property at the date of declaration.

d.market value of the property at the date of declaration.

10. When a property dividend is declared and the market value of the property exceeds its book value, the excess is credited to

a.Gain on Distribution of Property Dividends.

b.Retained Earnings.

c.Additional Paid-In Capital.

d.the related asset account.