MULTIPLE CHOICE

____1. When only one class of stock is issued by a corporation, it should be termed

A. Authorized stock

B. Treasury stock

C. Common stock

D. Preferred stock

E. None of these

____2. Which of the following statements is correct?

A. A corporation's issued stock may exceed its outstanding stock.

B. A corporation's outstanding stock may exceed its authorized stock.

C. A corporation's issued stock may exceed its authorized stock.

D. A Corporation's treasury stock may exceed its issued stock.

E. A corporation's treasury stock may exceed its authorized stock.

____3. Which of the following rights allows a shareholder of a corporation to maintain his or her proportionate interest in the corporation?

A. Preemptive right

B. Participation right

C. Preferred right

D. Cumulative right

E. None of these.

____4. The excess of the sales price of treasury stock over its cost should be credited to:

A. Retained Earnings

B. Paid-in Capital from Treasury Stock

C. Treasury Stock

D. Extraordinary Gain

E. None of these

____5. Treasury stock is

A. Stock of other corporation owned by a corporation

B. A U.S. government security

C. A corporation's own stock that has been retired.

D. A corporation's own stock that has been reacquired and held for future use.

E. None of these.

____6. The balance of the Retained Earnings account represents:

A. cash set aside for specific use

B. cash available for daily operations

C. an excess of revenues over expenses for the current period

D. profits of a company since the date of its beginning less any losses, dividends to stockholders and any transfers to Contributed Capital

E. None of these

____7. Each partner in a general partnership is liable

A. For his or her share of partnership liabilities

B. Jointly for the total debts of the partnership

C. Individually for the total debts of the partnership

D. For the acts of any other partner acting as a partner

E. For all of these

____8. Which of the following sequences of dividend-related dates is in the correct chronological order (earliest date first)?

A. Declaration date, record date, payment date

B. Record date, declaration date, payment date

C. Declaration date, payment date, record date

D. Payment date, declaration date, record date

E. None of these

____9. All of the following would appear on a Statement of

Stockholders Equity except

A. net income

B. an issuance of common stock

C. declaration of cash dividends

D. declaration of stock split

E. All of these

____10. If no formal agreement exists concerning distribution of

partnership profits and losses, they are distributed

A. Using average capital balances

B. Using beginning capital balances

C. Based on each partner's seniority

D. Equally

E. None of these