81. The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?
A. Retained Earnings
B. Treasury Stock
C. Organizational Expenses
D. Common Stock
82. Stockholders' equity
A. is usually equal to cash on hand
B. includes paid-in capital and liabilities
C. includes retained earnings and paid-in capital
D. is shown on the income statement
83. The two ways that a corporation can be classified by ownership are
A. stock and non-stock.
B. inside and outside.
C. majority and minority.
D. for profit or not-for-profit.
84. The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called
A. treasury stock
B. issued stock
C. outstanding stock
D. authorized stock
85. Which of the following is not a right possessed by common stockholders of a corporation?
A. the right to vote in the election of the board of directors
B. the right to receive a minimum amount of dividends
C. the right to sell their stock to anyone they choose
D. the right to share in assets upon liquidation
86. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
A. 5,000
B. 45,000
C. 40,000
D. 50,000
87. The par value per share of common stock represents
A. the minimum selling price of the stock established by the articles of incorporation.
B. the minimum amount the stockholder will receive when the corporation is liquidated
C. an arbitrary amount established in the articles of incorporation
D. the amount of dividends per share to be received each year
88. The price at which a stock can be sold depends upon a number of factors. Which statement below is not one of those factors?
A. the financial condition, earnings record, and dividend record of the corporation
B. investor expectations of the corporation's earning power
C. how high the par value
D. general business and economic conditions and prospects
89. Which of the following accounts below is reported in the paid-in capital/stockholders' equity section of the corporate balance sheet?
A. Cash
B. Stock Dividends
C. Organizational Expenses
D. Preferred Stock
90. A corporation issues 1,500 shares of common stock for $ 32,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for
A. $15,000
B. $32,000
C. $17,000
D. $2,000