If the market rate of interest is less than the contractual rate of interest, bonds will sell at a premium.

	True
	False

The number of shares outstanding is based on the number of shares issued less any treasury stock.

	True
	False

All stockholders have the right to vote in the election of the board of directors.

	True
	False

Which of the following is not a major advantage of a corporation?

a)	Separate legal existence

b)	Continuous life

c)	Government regulations

d)	Transferable ownership rights

All of the following are necessary to compute the future value of a single amount except the

a)	interest rate

b)	number of periods

c)

principal

d)	maturity value

What is the impact of the accounting equation when a declared dividend is paid on the payment date?

a)	assets decrease and equity decrease

b)	liabilities decrease and equity decreases

c)	liabilities increase and equity increases

d)	assets decrease and liabilities decrease

Bailey & Baxter issue 1000 shares of $9 par value common stock at $15 per share. When the transaction is recorded, credits are made to:

a)	Common Stock $9,000 and Retained Earnings $6,000

b)	Common stock $15,000

c)	Common stock $6,000 and Paid in Capital in excess of par value $9,000

d)	Common Stock $9,000 and Paid in Capital in excess of par value $6,000