Corporate Accounting Exam #1
T
A corp acts under its own name rather than in the name of its stockholders
T
A corp can be organized for the purpose of making a profit or it may be not-for-profit
F
A corp can issue more shares than it is authorized in its charter, if the board of directors approves of an increase in the number of authorized shares
F
A corp is not an entity which is separate and distinct from its owners
F
A corp must be incorporated in each state in which it does business
Publicly held corp
A corp whose stock is regularly traded on a national securities exchange is a:
crop is subject to more federal and state gov regulations
A factor which distinguishes the corp form of org from a sole proprietorship or a partnership is that a:
T
A privately held corp does not offer its stock for sale to the general public
T
A stockholder has the right to vote in the election of the board of directors
F
As soon as a corp is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized
Common stock
If a corp has only one class of stock, it is referred to as:
F
If a corp pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corp
the board of directors
Stockholders of a corp directly elect:
enhanced because of limited liability and ease of share transferability
The ability of a corp to obtain capital is:
F
The market value of a corps stock is determined by the number of shares that the corp has been authorized to issue
F
The par value of common stock must always be equal to its market value on the date the stock is issued
share in assets upon liquidation
The term residual claim refers to a stockholders' right to:
publicly held and privately held
The two ways that a corp can be classified by ownership are:
profit and not-for-profit
The two ways that a corp can be classified by purpose are:
the corps life is stipulated in its charter
Under the corp form of business org:
Application for incorporation to the appropriate Secretary of State
What is ordinarily the first step in the formation of a corp?
T
When no par value stock does not have a stated value, the entire proceeds from the issuance of the stock becomes legal capital
the acts of its owners bind the corp
Which of the following is not true of a corp?
Corps pay federal and state income taxes
Which of the following statements concerning taxation is accurate?
Limited liability of stockholders
Which of the following statements is not considered a disadvantage of the corp form of org?
a stockholder may dispose of part or all of his shares
Which of the following statements reflects the transferability of ownership rights in a corp?
its shares are regularly traded on the New York stock exchange
Which of the following would not be true of a privately held corp?
To declare dividends on the common stock
Which one of the following is not an ownership right of a stockholder in a corp?
gov regulation
Which one of the following would bot be considered an advantage of the corp form of org?
