0 [{"id":630150,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:31:34","updated_at":"2018-11-27 21:31:34","questionName":"Treasury shares are issued shares of the company\u2019s own stock that have been\r\nreacquired but not retired.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630155,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:32:20","updated_at":"2018-11-27 21:32:20","questionName":"Dividends in arrears on preferred stock should be classified on the balance sheet as\r\na liability.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"No liability exists for preferred dividends in arrears. The only time a liability exists for\r\ndividends is after they are declared by the board of directors. Any dividends in arrears\r\non preferred stock should be disclosed in a footnote to the financial statements.","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630141,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:30:16","updated_at":"2018-11-27 21:30:16","questionName":"The par value of a share of common stock usually is a good indication of what the\r\nstock is worth on the market.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"The par value of a stock issued has no relationship to the fair market value of the stock.\r\nPar value has but one real significance; it establishes the maximum responsibility of a\r\nstockholder in the event of corporate insolvency or other involuntary dissolution.","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630146,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:31:05","updated_at":"2018-11-27 21:31:05","questionName":"When capital stock is issued for noncash assets, the assets received should be\r\nrecorded at the par value of the stock issued.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"The general rule to be applied when stock is issued for assets other than cash is that the\r\nnoncash assets be recorded at either their fair market value or the fair market value of\r\nthe stock issued, whichever is more clearly determinable.","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630153,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:31:51","updated_at":"2018-11-27 21:31:51","questionName":"Treasury shares represent a reduction in the number of outstanding shares but not\r\nin the number of issued shares.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630147,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:31:16","updated_at":"2018-11-27 21:31:16","questionName":"Management salaries and other indirect costs related to a stock issue should be\r\nexpensed as incurred.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630152,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:31:42","updated_at":"2018-11-27 21:31:42","questionName":"Treasury stock should be shown as a deduction from total stockholders\u2019 equity.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630154,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:32:06","updated_at":"2018-11-27 21:32:06","questionName":"The gain on the sale of treasury stock should be included in income before\r\nextraordinary items on the income statement.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"If treasury stock is reissued at a price in excess of the acquisition cost, the excess is\r\ncredited to an account titled Paid-in Capital from Treasury Stock. This account is\r\nshown in the equity section of the balance sheet. A corporation cannot report a \u201cgain\u201d\r\nor a \u201closs\u201d from dealing in its own stock.","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630158,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:33:01","updated_at":"2018-11-27 21:33:01","questionName":"A convertible preferred stock issue normally will sell for a lower price than the\r\nsame issue would without the conversion feature.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"The shareholder who owns convertible preferred stock not only enjoys the preferred\r\nclaim on dividends, but also has the option of converting into a common shareholder.\r\nBecause of the attractiveness of this feature, convertible preferred stock will normally\r\nsell for a higher price than the same issue would without the conversion feature.","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630143,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:30:25","updated_at":"2018-11-27 21:30:25","questionName":"Contributions by shareholders (paid-in capital) and income retained by the\r\ncorporation represent the two primary sources from which corporate equity is derived.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630149,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:31:25","updated_at":"2018-11-27 21:31:25","questionName":"A company might purchase its outstanding stock to provide tax efficient\r\ndistributions of excess cash to shareholders.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630157,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:32:45","updated_at":"2018-11-27 21:32:45","questionName":"The dividend preference related to preferred stock is merely an assurance that the\r\nstated dividend rate or amount must be paid before any dividends can be paid on the\r\ncommon stock.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630144,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:30:40","updated_at":"2018-11-27 21:30:40","questionName":"Contributed capital is the capital that develops if the business operates profitably.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"Contributed capital (paid-in capital) is the term used to describe the total amount paid\r\nin on capital stock at any given time. Earned capital is the capital that develops if the\r\nbusiness operates profitably.","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630145,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:30:49","updated_at":"2018-11-27 21:30:49","questionName":"Under the incremental method, the market value of the securities is used as a basis\r\nfor those classes that are known and the remainder of the lump sum is allocated to the class\r\nfor which the market value is not known.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"","question_score_id":null,"lang":"","questionAudioPath":null},{"id":630156,"quiz_id":"30810","answer_id":null,"answerType_id":"0","created_at":"2018-11-27 21:32:35","updated_at":"2018-11-27 21:32:35","questionName":"Preferred stock does not have the voting right unless it possesses the participating\r\nfeature.","questionTimeSeconds":"0","questionTimeMinutes":"1","questionImagePath":null,"position":null,"explanation":"The participating feature of preferred stock refers to the right of preferred shareholders\r\nto share ratably with the common stockholders in any profit distribution beyond the\r\nprescribed rate. Preferred stock is normally nonvoting stock.","question_score_id":null,"lang":"","questionAudioPath":null}]

block

Treasury shares are issued shares of the company’s own stock that have been reacquired but not retired.

Select the correct answer(s).  

(0/0)

---

True

False

none

Dividends in arrears on preferred stock should be classified on the balance sheet as a liability.

Select the correct answer(s).  

(0/0)

Explanation

No liability exists for preferred dividends in arrears. The only time a liability exists for dividends is after they are declared by the board of directors. Any dividends in arrears on preferred stock should be disclosed in a footnote to the financial statements.

---

True

False

none

The par value of a share of common stock usually is a good indication of what the stock is worth on the market.

Select the correct answer(s).  

(0/0)

Explanation

The par value of a stock issued has no relationship to the fair market value of the stock. Par value has but one real significance; it establishes the maximum responsibility of a stockholder in the event of corporate insolvency or other involuntary dissolution.

---

False

True

none

When capital stock is issued for noncash assets, the assets received should be recorded at the par value of the stock issued.

Select the correct answer(s).  

(0/0)

Explanation

The general rule to be applied when stock is issued for assets other than cash is that the noncash assets be recorded at either their fair market value or the fair market value of the stock issued, whichever is more clearly determinable.

---

True

False

none

Treasury shares represent a reduction in the number of outstanding shares but not in the number of issued shares.

Select the correct answer(s).  

(0/0)

---

True

False

none

Management salaries and other indirect costs related to a stock issue should be expensed as incurred.

Select the correct answer(s).  

(0/0)

---

False

True

none

Treasury stock should be shown as a deduction from total stockholders’ equity.

Select the correct answer(s).  

(0/0)

---

True

False

none

The gain on the sale of treasury stock should be included in income before extraordinary items on the income statement.

Select the correct answer(s).  

(0/0)

Explanation

If treasury stock is reissued at a price in excess of the acquisition cost, the excess is credited to an account titled Paid-in Capital from Treasury Stock. This account is shown in the equity section of the balance sheet. A corporation cannot report a “gain” or a “loss” from dealing in its own stock.

---

True

False

none

A convertible preferred stock issue normally will sell for a lower price than the same issue would without the conversion feature.

Select the correct answer(s).  

(0/0)

Explanation

The shareholder who owns convertible preferred stock not only enjoys the preferred claim on dividends, but also has the option of converting into a common shareholder. Because of the attractiveness of this feature, convertible preferred stock will normally sell for a higher price than the same issue would without the conversion feature.

---

False

True

none

Contributions by shareholders (paid-in capital) and income retained by the corporation represent the two primary sources from which corporate equity is derived.

Select the correct answer(s).  

(0/0)

---

True

False

none

A company might purchase its outstanding stock to provide tax efficient distributions of excess cash to shareholders.

Select the correct answer(s).  

(0/0)

---

True

False

none

The dividend preference related to preferred stock is merely an assurance that the stated dividend rate or amount must be paid before any dividends can be paid on the common stock.

Select the correct answer(s).  

(0/0)

---

True

False

none

Contributed capital is the capital that develops if the business operates profitably.

Select the correct answer(s).  

(0/0)

Explanation

Contributed capital (paid-in capital) is the term used to describe the total amount paid in on capital stock at any given time. Earned capital is the capital that develops if the business operates profitably.

---

False

True

none

Under the incremental method, the market value of the securities is used as a basis for those classes that are known and the remainder of the lump sum is allocated to the class for which the market value is not known.

Select the correct answer(s).  

(0/0)

---

True

False

none

Preferred stock does not have the voting right unless it possesses the participating feature.

Select the correct answer(s).  

(0/0)

Explanation

The participating feature of preferred stock refers to the right of preferred shareholders to share ratably with the common stockholders in any profit distribution beyond the prescribed rate. Preferred stock is normally nonvoting stock.

---

True

False