a. c. a. a. c. 1. Which of the basic stockholder rights do preferred stockholders normally give up? The preemptive right b. The right to vote The right to excess assets after creditor claims are satisfied d. The right to receive dividends when they are declared 2. Treasury stock is stock that is Authorized but not issued b. Authorized and outstanding Issued and outstanding d. Issued but not outstanding 3. The Retained Earnings balance of Goa Company was $23,400 on January 1, 2006. Net income for 2006 was $13,240. If Retained Earnings had a credit balance of $10,500 after closing entries were posted on December 31, 2006, and if additional stock of $6,500 was issued during the year, dividends declared during 2006 were a. $19,400 b. $26,140 c. $32,640 d. None of the above 4. A small stock dividend is one that is less than 20% b. 10% 15% d. 25% 5. The right of current stockholders to purchase additional shares in order to maintain the same percentage ownership of new shares is called The cumulative preference b. Preemptive right c. Liquidation d. The voting rights privilege 6. Moony Corporation had 20,000 shares of $4 par-value common stock outstanding on January 1, 2006. On January 10, 2006, the firm purchased 2,000 of its outstanding shares for $18 per share. On July 22, 2006, it reissued 1,000 shares at $22 per share. Given this information, the entry to record the reissuing of the remaining 1,000 shares on August 17, 2006, at $12 per share would probably include a a. Debit to Retained Earnings of $2,000 b. Debit to Paid-In Capital, Treasury Stock of $6,000 Credit to Treasury Stock of $4,000 d. Debit to Loss on Sale of Stock of $6,000 7. When do dividends become liabilities? On the date of record b. On the declaration date On the payment date d. Dividends are never liabilities because a company is not legally required to pay dividends a. C. a. c