Accounting Final Chapter 13
Which of the following statements regarding corporations is incorrect?
Corporations are businesses organized under state law and do not have an existence that is separate from their owners
Which of the following are true for stock split and stock dividend?
Neither a stock split or a stock dividend will increase total stockholder's equity
A corporation originally issued 13 par value common stock for 15 per share. Which of the following is included in the entry to record the purchase of 300 shares of treasury stock for 11 per share?
Treasury stock- common is debited for 3300
The par value of stock is
amount assigned by a company to a share of its stock
Treasury stock is a ? account
contra equity
The purchase of treasury stock
decreases assets and stockholders' equity
Treasury Stock
decreases the number of shares outstanding
The two basic sources of stockholders equity are
paid-in capital, and retained earnings
dividends in arrears
passed dividends on cumulative preferred stock
When the corporation declares a stock dividend, a stockholder's percentage ownership in the stock of the corporation
remains unchanged
Preferred stock is stock
that gives its owners certain advantages over common stockholders