Diamondback welding & fabrication corporation

Corporations are owned by stockholders.

A) True B) False

2.

Unlike partnerships, corporations can pay dividends.

A) True B) False

3.

Double taxation is an advantage of the corporate form of business ownership.

A) True B) False

4.

The capital section of a corporation's balance sheet is commonly called Stockholers' Equity.

A) True B) False

5.

The balance of retained earnings represents surplus cash available for dividends.

A) True B) False

6.

Costs paid to organize a corporation are accounted for as stockholders' equity.

A) True B) False

7.

Normally, Retained Earnings should have a credit balance.

A) True B) False

8.

Stockholders have unlimited liability.

A) True B) False

9.

A corporation's CEO chooses its Board of Directors.

A) True B) False

10.

Stock can be authorized, issued, and outstanding all at the same time.

A) True B) False

11.

In PE 13-1A on page 621, National Furniture Company should pay its preferred stockholders a dividend of at least $1.50 dividend per share.

A) True B) False

12.

In PE 13-2A on page 622, Mountain Realty would debit cash for $960,000 on August 26.

A) True B) False

13.

Liquidating dividend payments are common.

A) True B) False

14.

In PE 13-4A on page 622, Old Wine Corporation would credit paid in capital in excess of par on commom stock (premium on common stock) for $60,000 on February 15.

A) True B) False

15.

Stock splits cause stock prices to rise.

A) True B) False

16.

Treasury stock reduces total equity reported by a corporation on its balance sheet.

A) True B) False

17.

EJ Constuction Inc. would credit its treasury stock account for $350,000 in part c of PR 13-3A on page 631.

A) True B) False

18.

In part b of PR 13-3B on page 633, Diamondback Welding and Fabrication Corporation would debit cash for $605,000.

A) True B) False

19.

Diamondback would also credit paid in capital from the sale of treasury stock for $440,000 in part b of PR 13-3B.

A) True B) False

20.

In part c of PR 13-3B, Diamondback would credit preferred stock for $1,600,000.

A) True B) False

21.

After recording transactions a through g in PR 13-3B, Diamondback would hane 14,500 shares of treasury stock worth $116,000 on its balance sheet.

A) True B) False

22.

In PR 13-4B on page 634, Nav-Go Enterprises Inc. would credit common stock for $1,600,000 on April 13.

A) True B) False

23.

On January 1, 2014, Nav-Go has total stockholders' equity of $9,503,000.

A) True B) False

24.

stock splits reduce retained earnings.

A) True B) False

25.

In PR 13-5B starting on page 634, West Yellowstone Outfitters Corporation would debit cash for $1,920,000 on May 31.

A) True B) False

26.

On August 17, West Yellowstone would credit treasury stock for $1,280,000.

A) True B) False

27.

Dividends are recorded on their date of declaration.

A) True B) False

28.

In EX 13-8 on page 625, Occupational Products Inc. would credit common stock for $50,000 to record the second entry dated March 1.

A) True B) False

29.

On May 31, Occupational Products would credit paid in capital in excess of par (or premium) on common stock for $175,000.

A) True B) False

30.

On March 13, no entry would be needed in EX 13-9 on page 625.

A) True B) False