NOTE: For multiple-choice and true/false questions, simply place your cursor over what you think is the correct answer. (There is no need to click the answer.) For fill-in-the-blank questions place your cursor over the _________.
If you have difficulty answering the following questions, learn more about this topic by reading our Stockholders' Equity Explanation.
We also have Crosswords and Q&A for this topic.
||One of the advantages of the corporation form of business as opposed to a partnership form is the ease of transferring _________________.
||Shares of stock that have been issued and have not been reacquired by the issuing
corporation are called _____________________ shares.
||The type of stock that gets its dividend before the common stock gets its dividend is called ___________________ stock.
||The holders of ___________ stock elect the corporation's board of directors.
||The par value of _____________ stock usually has no economic significance.
||The dividend on preferred stock is often expressed as a percentage. To calculate
the annual dividend on preferred stock, you multiply the percentage times the _______ _________ of the preferred stock.
||If a corporation issues 10% Preferred Stock $100 Par on a day when the financial
markets demand 9%, this corporation's 10% Preferred Stock will sell for _______ than its par value.
||If a common stock does not have a par value or a stated value, the entire proceeds from issuing the stock is credited to one account entitled _____________ _____________.
||Dividends appear as an expense on the corporation's income statement.
||If the board of directors does not declare the regular quarterly divided on its
common stock, the corporation's liabilities will include the omitted dividend.
||The ____________________ date is the date on which the corporation records a liability for its quarterly dividend.
||The ______________ date determines which stockholders will receive a
||If a corporation declares a small stock dividend, the account that will be
reduced by a debit entry is ______________ ___________.
||A stockholder will have the same number of shares after a 3-for-2 stock split or after a ______ % stock dividend.
||A corporation's own shares of stock that have been reacquired from its stockholders but have not been retired are called ______________ ____________.
||The account, Treasury Stock, will have either a zero balance or a ___________ (debit, credit) balance.
||Treasury stock sales can result in a loss on the corporation's income statement.
||If preferred stockholders have the opportunity to receive more than the stated
dividend percentage, the stock is described as ________________________ preferred stock.
||If a preferred stock can be exchanged for a stated number of common shares,
it is referred to as _______________________ preferred stock.
||The directors of a corporation appoint ______________ to carry out the corporation's policies and directives.
||When a small stock dividend is declared, the ______________ value of the new shares is transferred from Retained Earnings to paid-in capital accounts.