MULTIPLE CHOICE

____1. When only one class of stock is issued by a corporation, it should be termed

A. Authorized stock

B. Treasury stock

C. Common stock

D. Preferred stock

E. None of these

____2. Which of the following statements is correct?

A. A corporation's issued stock may exceed its outstanding stock.

B. A corporation's outstanding stock may exceed its authorized stock.

C. A corporation's issued stock may exceed its authorized stock.

D. A Corporation's treasury stock may exceed its issued stock.

E. A corporation's treasury stock may exceed its authorized stock.

____3. Which of the following rights allows a shareholder of a corporation to maintain his or her proportionate interest in the corporation?

A. Preemptive right

B. Participation right

C. Preferred right

D. Cumulative right

E. None of these.

____4. The excess of the sales price of treasury stock over its cost should be credited to:

A. Retained Earnings

B. Paid-in Capital from Treasury Stock

C. Treasury Stock

D. Extraordinary Gain

E. None of these

____5. Treasury stock is

A. Stock of other corporation owned by a corporation

B. A U.S. government security

C. A corporation's own stock that has been retired.

D. A corporation's own stock that has been reacquired and held for future use.

E. None of these.