ACC161 Unit 2 Review Assignment

1. Define the term liabilities.

2. What are the three crucial factors/characteristics of liabilities?

3. What are known liabilities? Give four examples of known liabilities.

4. What is capital stock?

5. Which financial statement will you find the stocks listed for a corporation?

6. What is the difference between common stock and preferred stock?

7. What is the difference between "authorized stock" and "issued and outstanding stock"?

8. What is the difference between par value stock and nonpar value stock?

9. What is meant when stock is issued at par?

10. What is meant when stock is issued for a premium?

11. What is meant when stock is issued at a discount?

12. What is the difference between a stock dividend and a stock split?

13. What is the difference between cumulative preferred stocks and noncumulative preferred stocks?

14. What is a cash dividend?

15. When a company declares a dividend, what accounts are affected when recording cash dividends? What accounts are affected when a cash dividend is paid? How would record each of these types of activities in a journal entry? Specifically, which account is debited and which account is credited?

Please answer all of the questions, if you can not answer all of the questions do not reply.