Part XIII: Account for the issuance of stock A company neither _____________________________ nor _________________________ when it sells
Question:
Part XIII: Account for the issuance of stock
A company neither _____________________________ nor _________________________ when it sells its stock to, or buys its stock from, its own stockholders.
Accounting for no-par stock with a stated value is identical to accounting for par-value stock. True or false?
When a corporation issues stock in exchange for assets other than cash, what value are the assets received recorded at?
Current market value
Cost
Par value
Stated value
Part XIV: Explain how treasury stock affects a company
A company’s own stock that it has issued and later reacquired is called _________________.
Treasury stock is recorded at its par value. True or false?
Part XV: Account for retained earnings, dividends, and stock splits
Who has the authority to declare a dividend?
Stockholders’
Board of directors
Management
The SEC
What is the only item that increases retained earnings?
Dividends
Net income
Expenses
Common stock
When a company has issued both preferred and common stock, the _____________ stockholders receive their dividends first. The ______________ stockholders receive dividends only if the total dividend is large enough to pay the ________________ shareholders first.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill