ACC II Chapter 11 Test Review

This type of stock never is paid dividends

• preferred
• common
• treasury

Cash dividends would be paid on which ..... issued shares or outstanding shares?

• issued
• outstanding

What is the entry for issuing common stock at par value?

• Debit cash, credit common stock
• debit common stock and credit cash
• debit cash and credit preferred stock

Classify treasury stock

• stockholder's equity
• contra stockholders equity
• liability

A company reacquires 10,000shares of common stock.  The par value of stock is $40 but the company paid $45 per share to reacquire the stock.  What is the debit for treasury stock?

• $400,000
• $450,000
• $50,000

Who elects the board of directors for a corporation?

• customers
• stockholders
• management

Purchased 50 shares of another corporation’s stock

• Treasury Stock; Cash
• Cash; Treasury Stock 
• Marketable Securities; Cash
• Cash; Marketable Securities 

Dividends are not paid on treasury stock.​

• True

• False

Dividends Payable is classified as a current liability.​

• True

• False

A stock dividend typically results in a decrease in the market price per share.​

• True

• False