Chapter 13: Accounting for corporations

Owners of a corporation

• CEO

• Board of Directors

• Sockholders

• partners

A corporation may acquire, own, and dispose of property in the corporation's name

• true

• false

Costs incurred in organizing a corporation are debited to the

• PIC account

• organizational expense account

• retained earnings account

• the treasury stock account

Stock that a corporation has once issued and then reqcquired.

• common stock

• preferred stock

• treasury stock

• PIC

A class of stock that has preferential rights over all other stock.

• common stock

• preferred stock

• treasury stock

• PIC

The excess of the par value of stock over its issue price

• net income

• preferred stock

• retained earnings

• PIC

Regular stock is called

• common stock

• preferred stock

• treasury stock

• PIC

When a corporation purchases its own stock, what account is credited for this transaction?

• cash

• treasury stock

• pic

• retained earings

What is the name of the account that is similar to the capital account for sole prop. (it is the accumulation of net income-dividends)

• Paid in capital

• retained earnings

• premium

• treasury stock

The excess of the proceeds from selling treasury stock over its cost should be credited to

• PIC in excess of par-common stock

• PIC retained earnings, treasury stock

• PIC from sale of treasury stock

• PIC