(1) Which of the following represents the largest number of common shares?
a. Treasury Shares
b. Issued shares
c. Outstanding shares
d. Authorized shares
(2) If Keene Company issues 4,500 shares of $5 par value common stock for $80,000, the account
a. Common Stock will be credited for $22,500.
b. Paid-in Capital in Excess of Par will be credited for $22,500.
c. Paid-in Capital in Excess of Par will be credited for $80,000.
d. Cash will be debited for $57,500.
(3) The following data is available for Blaine Corporation at December 31, 2013:
Common stock, par $10 (authorized 25,000 shares) $200,000
Treasury Stock (at cost $15 per share) $900
Based on the data, how many shares of common stock are outstanding?
a. 25,000
b. 20,000
c. 24,940
d. 19,940
(4) Treasury stock is
a. stock issued by the U.S. Treasury Department.
b. stock purchased by a corporation and held as an investment in its treasury.
c. corporate stock issued by the treasurer of a company.
d. a corporation's own stock which has been reacquired but not retired.
(5) The date on which a cash dividend becomes a binding legal obligation is on the
a. declaration date.
b. date of record.
c. payment date.
d. last day of the fiscal year-end.
(6) The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to
a. decrease total liabilities and stockholders' equity.
b. increase total expenses and total liabilities.
c. increase total assets and stockholders' equity.
d. decrease total assets and stockholders' equity.
(7) Which of the following is not a significant date with respect to dividends?
a. The declaration date
b. The incorporation date
c. The record date
d. The payment date
(8) Dividends Payable is classified as a
a. long-term liability.
b. contra stockholders' equity account to Retained Earnings.
c. current liability.
d. stockholders' equity account.
(9) Story Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2013. What is the annual dividend on the preferred stock?
a. $60 per share
b. $30,000 in total
c. $50,000 in total
d. $0.60 per share
(10) Entries for cash dividends are required on the:
(a) declaration date and the payment date.
(b) record date and the payment date.
(c) declaration date, record date, and payment date.
(d) declaration date and the record date.
Attachment:- Quiz 3 Revised.docx