ACC210P ? Concepts of Financial Reporting - Chapter 10
ACC210P - Concepts of Financial Reporting - Chapter 10 SUPPLEMENTAL EXERCISE or QUIZ - Option A A1. To start a corporation in the U.S., it is necessary to file an application in one of the states. The legal document that the state approves is the ________________________. A2. At a corporation, Assets minus Liabilities is ___________________________. A3. If a corporation has issued only one type of stock, it is ___________________________. A4. The holders of ______________ elect the corporation's board of directors. A5. The dividend on Preferred Stock is often expressed as a percentage. To calculate the annual dividend on preferred stock, you multiply the percentage times the _____________ of the preferred stock. A6. Stockholder's equity is subdivided into two major sections: _______________________ and _______________________________. A7. Dividends appear as an expense on the corporation's Income Statement. A8. The __________________ determines which stockholders will receive a declared dividend. A9. A corporation's own shares of stock that have been reacquired from its stockholders but have not been retired are called ____________________________. A10. True False If a share of treasury stock is sold for more than its cost, the difference is credited to _____________________________________________________________. ACC210P - Concepts of Financial Reporting - Chapter 10 SUPPLEMENTAL EXERCISE or QUIZ - Option B B1. One of the advantages of the corporation form of business as opposed to a partnership form is the ease of transferring ________________________. B2. Shares of stock that have been issued and have not been reacquired by the issuing corporation are called _____________________ shares. B3. The type of stock that gets its dividend before the common stock gets its dividend is called ________________________. B4. The par value of _____________________ usually has no economic significance. B5. If a common stock does not have a par value or a stated value, the entire proceeds from issuing the stock is credited to one account entitled ________________________. B6. Dividends declared by a corporation reduce the ___________________ section of _____________________________. B7. The ____________________ is the date on which the corporation records a liability for its quarterly dividend. B8. If a corporation declares a small stock dividend, the account that will be reduced by a debit entry is ___________________. B9. The account, Treasury Stock, will have either a zero balance or a ___________ (debit, credit) balance. B10. B11. (Bonus) Treasury Stock sales can result in a loss on the corporation's Income Statement. True Dividends in arrears occur only on ______________________________ stock. False
