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Choose: Claremont Corporation issued 100,000 shares of $1.00 par common stock at a price of $5.00. How would this transaction affect the net income of Claremont Corporation? A. Increases net income B. Decreases net income C. Increases revenue but not net income D. Has no effect on net income 2 Choose: Carmen Corporation made a net income this year of $80,000. At closing, the net income will be closed to which account? A. Carmen Capital B. Retained Earnings C. Dividends Payable D. Paid in Capital in Excess of Par 3 Choose: At what governmental level is a corporation organized? A. Federal level in Washington D. C. B. State level, such as Washington State C. At the city level, such as Seattle D. At the county level, such as King County Choose: When a stock dividend is declared, which value is used to debit Retained Earnings? A. use the par value B. use the earnings per share C. use the market value of the shares to be distributed D. None of these 5 Choose: B. partnership C. corporation Which of the following business entitites must pay income taxes? A. Proprietorship D. all of these entities pay income taxes 6 Choose: Kandahar Corporation issued $1,000,000 of 4% preferred stock and received $1,200,000 cash. What is the dividend requirement for the dividend on this stock? A. $40,000 B. $48,000 C. $1,000,000 D. $36,000 Choose: Which of the following is true of preferred stock? A. Preferred stockholders must receive a dividend B. Preferred stockholders receive a dividend after the common shareholders have received a dividend C. Preferred stockholders get a dividend only if the board of directors declares the dividend D. all of these are true 8 Choose: What is the formula to calculate the Earnings Per Share (EPS) assuming there are no preferred shares outstanding? A. EPS = Revenue/Number of Common Shares B. EPS = Net Income / Number of Common Shares C. EPS = Net Income/ Number of Preferred Shares D. None of these 91 Choose: Morgan Corporation issued 100,000 shares of $1.00 par common stock and 4,000 shares of $100-par 4% preferred stock. The board of directors declared a cash dividend of $24,000. How would the dividend be divided between preferred and common stock? A. $16,000 to preferred and $8,000 to common B. All $24,000 to preferred and none to common C. $16,000 to common and $8,000 to preferred D. All $24,000 to common 10 Choose: Which class of stock usually gets a voting right? A. Common B. Preferred C. Both Common and Preferred D. Neither Common nor Preferred 11 Choose: Treasury Stock can be defined as: A. Special shares of stock owned by executives B. Shares that were issued but then later re-acquired by the company that issued them C. Another name for Preferred Stock D. None Freud Formula Bar 12] Choose: Which type of stock has a fixed dividend? A. Common Stock B. Treasury Stock C. All stocks have a fixed dividend D. Preferred Stock 13] Choose: There are three dividend dates. Which dividend date has no journal entry? A. Record date B. Declaration date C. Payment date D. All dividend dates have journal entries 14] Choose: On which corporation statement would you find Income Tax Expense? A. Balance Sheet B. Retained Earnings Statement C. Income Statement D. Both the Balance Sheet and Retained Earnings Statement C 15 Choose: Fun Question: go to Yahoo Finance. Using the ticker symbols given in parentheses, look at the current stock price. Here's your question: Which one of the following stocks is trading at over $350,000 per share? Choose one only. A. Alphabet (GOOG) B. Tesla (TSLA) C. Apple (AAPL) D. Berkshire Hathaway (BRK-A)
