Chapter 11 Quiz

Chapter 11 Quiz - Acc102 Students Quiz 1 Chapter 11 Answers...

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Acc102 Students Quiz 1 Chapter 11 – Answers will be given and discussed in class as part of lecture. 1. The start-up and organization costs of a corporation should a. be recorded and maintained as an intangible asset for the life of the corporation. b. be recorded as an intangible asset and amortized over a reasonable length of time. c. be written off as an expense when incurred. d. not be incurred before the state grants the corporation its charter. 2. A transfer agent keeps records of stock transactions. (True or false)? 3. On which of the following dates is a journal entry made? a. Record date b. Date of payment c. Declaration date d. Both b and c 4. Which of the following could be described as both an advantage and a disadvantage of incorporation? a. Continuous existence b. Limited liability c. Double taxation d. Lack of mutual agency 5. A plan under which employees are allowed to purchase shares of stock in a company at a specified price is called a stock a. option plan. b. subscription plan. c. dividend plan. d. compensation plan. 6. When corporations initially sell their stock to the public, they often engage the services of an underwriter. True or false? 7. Which of the following statements is true ? a. Outstanding shares plus issued shares equal authorized shares. b. Unissued shares plus outstanding shares equal authorized shares. c. Authorized shares minus unissued shares equal issued shares. d. Unissued shares minus issued shares equal outstanding shares. 8. Legal capital is a descriptive phrase for a. stockholders' equity. B. residual equity. C. market value. D. par value. 9. All of the following normally are found in the stockholders’ equity section of a corporate balance sheet except a. additional paid-in capital. b. retained earnings. C. dividends payable. D.common stock. 10. Preferred stock is considered the residual equity of a corporation. True or false? 11. The maximum number of shares of common stock that may be issued according to the corporation's charter is referred to as a. authorized shares. B. outstanding shares. C. unissued shares. D. issued shares. 12. Contributed capital consists of capital stock plus additional paid-in capital. True or false? 13. Dividends in arrears are dividends on a. noncumulative preferred stock that have not been declared for a specific period. b.
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This note was uploaded on 04/25/2011 for the course ACC 101 taught by Professor Dasd during the Winter '08 term at DePaul.

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Chapter 11 Quiz - Acc102 Students Quiz 1 Chapter 11 Answers...

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