Fall 2011 BLC AIS 100 final exam review - questions

Fall 2011 BLC AIS 100 final exam review - questions - AIS...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
AIS 100 BLC – FINAL EXAM REVIEW 1. All of the following are true about a corporation except: a. must abide by the laws b. is a legal entity c. has the right to vote d. must pay taxes 2. Proof of stock ownership is evidenced by a printed or engraved form known as a: a. stock dividend b. note c. debenture d. stock certificate 3. In order to pay a cash dividend a. the corporation must have adequate retained earnings b. the board of directors must declare a dividend c.the corporation must have adequate cash d. all of the above 4. Dividends can take the following forms: a. cash b.property c.script d. all of the above 5. When issuing cash dividends, the board of directors commits the corporation to a binding legal obligation on: a. the declaration date b. the date of record c.the date of payment d. none of the above 6. A stock dividend results in: a. a decrease in retained earnings b. an increase in paid-in capital c. a decrease in stockholders’ equity and total assets d. both a and b above 7. Upon receiving a stock dividend: a. a stockholder owns more shares b. a stockholder’s interest has increased c. a stockholder’s interest has not changed d. both a and c above
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. to satisfy stockholders’ dividend expectations without spending cash b. to increase the marketability of its stock by increasing the number of shares outstanding and thereby decreasing the market price per share c. to emphasize that a portion of stockholders’ equity has been permanently reinvested in the business and therefore is unavailable for cash dividends d. all of the above 9. The statement of cash flows classifies cash receipts into which of the following activities? a. Investing and Financing b. Investing, Financing, and Operating c. Operating and Financing d. Investing, Financing, and Liquidating 10. Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter in to the determination of net income are referred to as: a. investing activities b. financing activities c. operating activities d. all of the above 11. The source of cash generally considered to be the best measure of whether a company can generate sufficient cash to continue as a going concern and to expand is provided by a. investing activities b. financing activities c. operating activities d. all of the above 12. Cash outflows to purchase property, plant and equipment; to purchase debt or equity securities or other entities; or to make loans to other entities are examples of a. investing activities b. financing activities c. operating activities d. all of the above 13. Significant noncash activities include a. conversion of bonds into common stock b. payment on a bank note c. exchange of plant assets 14. During which phase in the life cycle will a company be spending considerable amounts to purchase productive assets, but not generating much (if any) cash from operations? a. Introductory phase
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 21

Fall 2011 BLC AIS 100 final exam review - questions - AIS...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online