The date on which cash dividends are paid is the

a.date of declaration.

b.last day of the fiscal year-end.

c.date of payment.

d.date of record.

Steak Company acquired a building valued at $170,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and selling for $16 per share. At what amount should the building be recorded by Steak Company?

a.$50,000

b.$200,000

c.$160,000

d.$170,000

Which of the following statements concerning taxation is accurate?

a.Corporations pay federal income taxes but not state income taxes.

b.Corporations pay income taxes, but their stockholders do not.

c.Only the stockholders must pay taxes on corporate income.

d.Corporations pay federal and state income taxes.

Which of the following is not true of a corporation?

a.It may enter into binding legal contracts in its own name.

b.It may buy, own, and sell property.

c.The owners are personally liable for corporate actions.

d.It may sue and be sued.

Which of the following is not a term used to refer to owners' equity in a corporation?

a.Stockholders' equity

b.Capital

c.Shareholders' investment

d.Members' equity

If a corporation has only one class of stock, the account is entitled Common Stock or

a.Capital Stock.

b.Owners' Stock.

c.Member Stock.

d.Preferred Stock.

The entry to record the issuance of common stock at a price above par includes a credit to

a.Organizational Expenses.

b.Paid-In Capital in Excess of ParCommon Stock.

c.Cash.

d.Preferred Stock.

The number of shares of stock that a corporation can issue as stated in its charter is referred to as

a.outstanding.

b.authorized.

c.arrears.

d.issued.

When a cash dividend is declared, which of the following accounts is credited?

a.Common Stock

b.Cash Dividends

c.Cash Dividends Payable

d.Paid-In Capital

Aaron Company has 80,000 shares of $10 par common stock outstanding. On May 25, Aaron Company declared a $1.50 cash dividend. The market price of the stock on May 25 was $17 per share. The journal entry to record the cash dividend would include

a.a debit to Cash for $560,000.

b.a credit to Paid-In Capital in Excess of ParCommon Stock for $560,000.

c.a debit to Cash Dividends for $120,000.

d.All of these choices are correct.