Accounting Theory 1. The term, "deficit," is employed to refer to a debit balance in which of the following accounts of a corporation? a. Retained Earnings b. Treasury Stock c. Organization Expenses d. Common Stock or Preferred Stock e. Paid in Capital in Excess of Par Common or Preferred Stock 2. If a corporation issues only one class of stock, this class is called a. common stock b. treasury stock c. no-par stock d. preferred stock e. stated value stock 3. All of the following statements regarding the accounting for the stockholders equity of a corporation are true except A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning of the period in which the adjustment was made. a. b. A restriction/appropriation of retained earnings established cash assets that c. A 10% stock dividend will increase the number of shares outstanding, but d. The cost of treasury stock is deducted from total paid-in capital and e. If the dividend amount of preferred stock, $50 par value, is quoted as 800, are set aside for a specific purpose. the book value per share will decrease. retained earnings in determining total stockholders' equity then the dividends per share would be $4