Chapter 10

• A. $330

  million

• B. $815

  million

• C. $400

  million

• D. $70

  million

Answer explanation

Common Stock+ Additional Paid in Capital

The two main categories of​ stockholders' equity are

• A. retained earnings and​ paid-in capital.

• B. retained earnings and common stock.

• C. assets and liabilities.

• D. common stock and preferred stock.

Which of the following is a characteristic of a​ corporation?

• A. Limited liability of stockholders

• B. No income tax

• C. Mutual agency

• D. Both b and c

Preferred stock is least likely to have which of the following​ characteristics?

• A. Preference as to dividends

• B. Preference as to assets on liquidation of the corporation

• C. Preference as to voting

• D. The right of the holder to convert the shares to common stock

If a corporation issues 3,500

shares of $2.00

par value common stock for $21,000​,

the journal entry would include a credit to

• A.

  Common Stock for

  $7,000.

• B.

  Retained Earnings for

  $7,000.

• C.

  Common Stock for

  $21,000.

• D.

  ​Paid-in Capital in Excess of

  Par—Common

  for

  $21,000.