1. If Vickers Company issues 2,000 shares of $5 par value common stock for $140,000,
a. Common Stock will be credited for $140,000.
b. Paid-In Capital in Excess of Par Value will be credited for $10,000.
c. Paid-In Capital in Excess of Par Value will be credited for $130,000.
d. Cash will be debited for $130,000.
2. Which of the following represents the largest number of common shares?
a. Treasury shares
b. Issued shares
c. Outstanding shares
d. Authorized shares
3. Treasury stock is generally accounted for by the
a. cost method.
b. market value method.
c. par value method.
d. stated value method.
4. When preferred stock is cumulative, preferred dividends not declared in a period are
a. considered a liability.
b. called dividends in arrears.
c. distributions of earnings.
d. never paid.
5. Book value per share is computed by dividing total
a. paid-in capital by the number of common shares outstanding.
b. paid-in capital by the number of common shares issued.
c. stockholders' equity by the number of common shares outstanding.
d. stockholders' equity by the number of common shares issued.
6. Barr, Inc. reports $3,000,000 of common stock and $4,500,000 of additional paid-in capital on its balance sheet. The number of common shares issued and outstanding is 500,000 shares. The book value per share is
a. $15.
b. $9.
c. $6.
d. not determinable.
7. Capital stock to which the charter has assigned a value per share is called
a. Par value stock
b. No-par value stock
c. Stated value stock
d. Assigned value stock
8. When common stock is issued for services or non-cash assets, cost should be
a. only the fair market value of the consideration given up.
b. only the fair market value of the consideration received.
c. the book value of the common stock issued.
d. either the fair market value of the consideration given up or the consideration received, whichever is more clearly evident.
9. When the selling price of treasury stock is greater than its cost, the difference is credited to
a. Gain on Sale of Treasury Stock.
b. Paid-in Capital from Treasury Stock.
c. Paid-in Capital in Excess of Par Value.
d. Treasury Stock.
10. On January 2, 2010, Riley Corporation issued 20,000 shares of 6% cumulative preferred stock at $100 par value. On December 31, 2013, Riley Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?
a. $0
b. $120,000
c. $360,000
d. $480,000