Part XIII: Account for the issuance of stock

A company neither _____________________________ nor _________________________ when it sells its stock to, or buys its stock from, its own stockholders.

Accounting for no-par stock with a stated value is identical to accounting for par-value stock. True or false?

When a corporation issues stock in exchange for assets other than cash, what value are the assets received recorded at?

Current market value

Cost

Par value

Stated value

Part XIV: Explain how treasury stock affects a company

A companys own stock that it has issued and later reacquired is called _________________.

Treasury stock is recorded at its par value. True or false?

Part XV: Account for retained earnings, dividends, and stock splits

Who has the authority to declare a dividend?

Stockholders

Board of directors

Management

The SEC

What is the only item that increases retained earnings?

Dividends

Net income

Expenses

Common stock

When a company has issued both preferred and common stock, the _____________ stockholders receive their dividends first. The ______________ stockholders receive dividends only if the total dividend is large enough to pay the ________________ shareholders first.