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Accounting 2 - Chapter 10 (Stock Transactions)

Total questions: 12

Worksheet time: 5mins

Name
Class
Date
1.

The value of a share of stock that is printed on a stock certificate is known as

a)

Common Stock

b)

Preferred Stock

c)

Par Value

d)

Stated Value

2.

Par Value Stock and Stated Value stock are different in how they

a)

demonstrate the face value of the stock to an investor

b)

are used to determine who has right to the dividends

c)

demonstrate if you are making or losing money from the sale of stock

d)

determine the value of the stock

3.

The government institution that regulates securities for a corporation is known as the

a)

FTC

b)

SEC

c)

Charter

d)

ACC

4.

The government agency SEC is an acronym for

a)

Securities Exchange Commission

b)

Southeastern Conference

c)

Stock Exchange Committee

5.

What is the primary advantage of an investor purchasing Preferred Stock?

a)

Voting rights in corporate votes

b)

More rights than common stock

c)

1st right to corporate dividends

d)

Stock is typically purchased at a lower price than common

6.

Which of the following is the group of people elected to govern the corporation?

a)

Charter

b)

SEC

c)

IRS

d)

Board of Directors

7.

What are the two levels that corporate earnings and dividends are taxed on?

a)

Personal Income

b)

Government Income

c)

Corporate Income

d)

Property Income

8.

Apple is an example of a(n)?

a)

Secondary Market

b)

Publicly Held Corporation

c)

Primary Market

d)

Privately Held Corporation

9.

The account that you use to keep track of the ownership of stock in a corporation

a)

Cash

b)

Paid in Capital

c)

Capital Stock

d)

Retained Earnings

10.

IPO is acronym for what activity for a publicly held corporatioin?

a)

Investors Public Opportunity

b)

Initial Public Offering

c)

Investors Public Offering

d)

Initial Public Opportunity

11.

What classification of account is "Capital Stock"

a)

Asset

b)

Liability

c)

Owners Equity

d)

Revenue

12.

Non par value stock but there is a value assigned to the stock is called

a)

Par Value Stock

b)

Stated Value Stock

c)

Common Stock

d)

Preferred Stock