Study Guide Accounting
31. 11-43. Book value per share of common stock is derived by which of the following
A. Stockholders equity divided by the number of shares authorized.
B. Stockholders equity divided by the number of shares outstanding.
C. Net income divided by the number of shares outstanding
D. Net income divided by the number of shares authorized.
32. 11-44. The net assets of a corporation are equal to:
A. Total assets - total liabilities.
B. Total assets - retained earnings.
C. Total assets + total liabilities.
D. Total assets + retained earnings.
33. 11-46. When shares of stock are sold from one investor to another they will trade at:
A. Par value.
B. Book value.
C. Market value.
D. Stated Value.
34. 11-49. Which of the following is not a characteristic of the corporate form of organization?
A. The owners of a corporation cannot lose more than the amount of their investment.
B. Shares of stock in a corporation are more readily transferable than is an interest in a partnership.
C. Stockholders have authority to decide by majority vote the amount of dividends to be paid.
D. The corporation is a very efficient vehicle for obtaining large amounts of capital required for large-scale production.
35. 11-52. A primary disadvantage of the corporate form of organization is:
A. Unlimited personal liability for business debts.
B. Ownership is difficult to transfer.
C. Corporate earnings are subject to double taxation.
D. Management is separated from ownership.
36. 11-53. Public corporations are required by law or regulation to perform all of the following except:
A. Submit much of their financial information to the SEC for review.
B. Make regularly scheduled dividend payments to all stockholders.
C. Have their annual financial statements audited by an independent CPA.
D. Disclose their financial information to the public.
37. 11-54. Which of the following is not a right of stockholders?
A. To vote for directors and on key issues.
B.
A. Stockholders equity divided by the number of shares authorized.
B. Stockholders equity divided by the number of shares outstanding.
C. Net income divided by the number of shares outstanding
D. Net income divided by the number of shares authorized.
32. 11-44. The net assets of a corporation are equal to:
A. Total assets - total liabilities.
B. Total assets - retained earnings.
C. Total assets + total liabilities.
D. Total assets + retained earnings.
33. 11-46. When shares of stock are sold from one investor to another they will trade at:
A. Par value.
B. Book value.
C. Market value.
D. Stated Value.
34. 11-49. Which of the following is not a characteristic of the corporate form of organization?
A. The owners of a corporation cannot lose more than the amount of their investment.
B. Shares of stock in a corporation are more readily transferable than is an interest in a partnership.
C. Stockholders have authority to decide by majority vote the amount of dividends to be paid.
D. The corporation is a very efficient vehicle for obtaining large amounts of capital required for large-scale production.
35. 11-52. A primary disadvantage of the corporate form of organization is:
A. Unlimited personal liability for business debts.
B. Ownership is difficult to transfer.
C. Corporate earnings are subject to double taxation.
D. Management is separated from ownership.
36. 11-53. Public corporations are required by law or regulation to perform all of the following except:
A. Submit much of their financial information to the SEC for review.
B. Make regularly scheduled dividend payments to all stockholders.
C. Have their annual financial statements audited by an independent CPA.
D. Disclose their financial information to the public.
37. 11-54. Which of the following is not a right of stockholders?
A. To vote for directors and on key issues.
B.