Quiz 6
The use of internal controls gives guaranteed protection against losses due to operating activities True False
False
Which of the following are valid control procedures? a. Segregation of duties b. Adequate documents and records c. Independent checks on performance d. All of the above
d
A corporate charter specifies that the company may sell up to 20 million shares of stock. The company sells 12 million shares to investors and then later buys back 3 million shares. The number (in millions) of issued shares after these transactions are accounted for is (answer in whole numbers like the question, so if your answer is 5 million, just put 5):
12
A corporate charter specifies that the company may sell up to 20 million shares of stock. The company sells 12 million shares to investors and then later buys back 3 million shares. The number (in millions) of authorized shares after these transactions are accounted for is (answer in whole numbers like the question, so if your answer is 5 million, just put 5):
20
A corporate charter specifies that the company may sell up to 20 million shares of stock. The company sells 12 million shares to investors and then later buys back 3 million shares. The number (in millions) of shares of treasury stock after these transactions are accounted for is (answer in whole numbers like the question, so if your answer is 5 million, just put 5):
3
A corporate charter specifies that the company may sell up to 20 million shares of stock. The company sells 12 million shares to investors and then later buys back 3 million shares. The number (in millions) of outstanding shares after these transactions are accounted for is (answer in whole numbers like the question, so if your answer is 5 million, just put 5):
9
Which feature is not applicable to common stock ownership? a. Right to receive dividends before preferred stock shareholders b. Right to vote on appointment of external auditor c. Right to receive residual assets of the company should it cease operations d. All of the above are applicable to common stock ownership
a
In what situation does total stockholders' equity decrease? a. Dhen a stock dividend is declared b. When a cash dividend is declared c. When a stock split is announced d. None of the above
b
Regarding dividends, a journal entry is not recorded on what date? a. Date of declaration b. Date of record c. Date of payment d. A journal entry is recorded on all of the above dates
b
Treasury stock: a. does not appear on the balance sheet b. is a contra-equity account c. is an asset account d. is recorded as additional paid-in capital
b
A company sells 1 million shares of common stock with a par value of $.02 for $15 per share. To record the transaction, the company would: a. debit cash for $20,000 and credit Common Stock for $20,000 b. debit cash for $15 million and credit common stock for $15 million c. debit cash for $15 million, credit Common Stock for $20,000 and credit Additional Paid-In Capital for $14,980,000 d. debit cash for $20,000, debit Capital Receivable for $14,980,000, credit Common Stock for $20,000 and credit Additional Paid-In Capital for $14,980,000.
c
Which statement regarding dividends is false? a. Dividends represent a sharing of corporate profits with owners b. Both stock and cash dividends reduce retained earnings c. Cash dividends paid to stock holders reduce net income d. None of the above statements is false
c
Which of the following statements about stock dividends is true? a. Stock dividends are reported on the income statement b. Stock dividends increase total stockholders' equity c. Stock dividends decrease total stockholders' equity d. None of the above is true
d
Which statement regarding treasury stock is false? a. Treasury stock is considered to be issued but not outstanding b. Treasury stock has no voting, dividend, or liquidation rights c. Treasury stock reduces total stockholders' equity on the balance sheet d. None of the above are false
d
