31.The term "contributed capital" includes
a.amounts received in excess of par value
b.retained earnings
c.amounts borrowed from banks
d.authorized but unissued shares
32.Which of the following represent capital that has been earned by the profitable operation of the firm?
Paid-In Capital Retained Earnings
a.Yes Yes
b.Yes No
c.No Yes
d.No No
33.A corporation's contributed capital would include
a.retained earnings
b.loans received from a bank
c.unrealized loss on long-term investments
d.amounts received over and above the par value
34.The maximum number of shares of stock that can be sold and issued as specified in the charter of the corporation is known as
a.outstanding shares
b.subscribed shares
c.issued shares
d.authorized shares
35.Outstanding stock is
a.stock that is in very high demand
b.currently still held by shareholders
c.the maximum number of shares that a corporation may sell
d.cumulative
36.Treasury stock
a.is issued by a firm to finance expansion of operations
b.is more similar to preferred stock than to common stock
c.has been issued, but is not currently outstanding
d.will result in an increase stockholders' equity
37.Which of the following is most descriptive of treasury stock?
a.it is a special class of stock issued by the company's treasurer
b.it receives higher dividends than other types of stock
c.it has extra voting privileges
d.it is stock repurchased by the firm that issued it
38.Retained earnings can best be described as
a.cash receipts minus expenses after adjustments
b.net income minus expenses after adjustments
c.undistributed profits
d.net income minus cash disbursements after adjustments
39.The term "retained earnings" is
a.representative of the cash that the corporation has available to pay dividends as of the balance sheet date
b.found among the assets on the balance sheet of any profitable corporation
c.always as large or larger than Cash on the balance sheet
d.an account balance found on the balance sheet of a corporation that has represents accumulated earnings of the corporation which could be used to pay dividends at some future date.
40.Super Ram Computer Company has total liabilities of $40,000, total assets of $300,000 and contributed capital of $120,000. What is the amount of retained earnings?
a.$20,000
b.$110,000
c.$140,000
d.$160,000