Question 1

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:

Determine the dividends per share for preferred and common stock for the second year.

Accepted Answer

A)  $2.25 and $0.00
B)  $2.25 and $0.45
C)  $0.00 and $0.45
D)  $2.00 and $0.45E) B) and C)
F) C) and D)

Question 2

A large retained earnings account means that there is cash available to pay dividends.

Accepted Answer

A) True 
 B)False

Question 3

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Accepted Answer

A) True 
 B)False

Question 4

Under the Internal Revenue Code,corporations are required to pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 5

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

Accepted Answer

A) True 
 B)False

Question 6

A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Accepted Answer

A)  $25,000
B)  $45,000
C)  $20,000
D)  $ 5,000E) All of the above
F) A) and D)

Question 7

Before a stock dividend can be declared or paid,there must be sufficient cash.

Accepted Answer

A) True 
 B)False

Question 8

Double taxation is a disadvantage of a corporation because the same party has to pay taxes twice on the income.

Accepted Answer

A) True 
 B)False

Question 9

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:

Determine the dividends per share for preferred and common stock for the third year.

Accepted Answer

A)  $4.50 and $0.25
B)  $3.25 and $0.25
C)  $4.50 and $0.90
D)  $2.00 and $0.25E) A) and D)
F) C) and D)

Exam 11: Corporations: Organization, stock Transactions, and Dividends

Double taxation is a disadvantage of a corporation because the same party has to pay taxes twice on the income.

Correct Answer
verified

Under the Internal Revenue Code,corporations are required to pay federal income taxes.

Correct Answer
verified

Before a stock dividend can be declared or paid,there must be sufficient cash.

Correct Answer
verified

A large retained earnings account means that there is cash available to pay dividends.

Correct Answer
verified

A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Correct Answer
verified

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year.

Correct Answer
verified

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

Correct Answer
verified

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Correct Answer
verified

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the second year.

Correct Answer
verified

Exam 11: Corporations: Organization, stock Transactions, and Dividends

Double taxation is a disadvantage of a corporation because the same party has to pay taxes twice on the income.

Correct AnswerverifiedShow Answer

Under the Internal Revenue Code,corporations are required to pay federal income taxes.

Correct AnswerverifiedShow Answer

Before a stock dividend can be declared or paid,there must be sufficient cash.

Correct AnswerverifiedShow Answer

A large retained earnings account means that there is cash available to pay dividends.

Correct AnswerverifiedShow Answer

A corporation issues 2,500 shares of common stock for $ 45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Correct AnswerverifiedShow Answer

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year.

Correct AnswerverifiedShow Answer

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

Correct AnswerverifiedShow Answer

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Correct AnswerverifiedShow Answer

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the second year.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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