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