BUS 230 Chapter 8

Question 1

Which of the following statements are true regarding Treasury Stock? (Select all that apply)

Accepted Answer

The repurchase of shares will usually increase the price of the stock, Can be re-sold by the company at the then current market price, Represents outstanding shares repurchased by the company

Question 2

Sole Proprietorships and Partnerships do not issue stock

Accepted Answer

True

Question 3

Which of the following accounts would NOT appear in Stockholders Equity?

Accepted Answer

Deferred Taxes

Question 4

Regarding cash dividends, a journal entry is needed on which of the following dates? (Select all that apply)

Accepted Answer

Date of Declaration, Date of Payment

Question 5

Both a Stock Dividend and a Stock Split do not change total Stockholders' Equity

Accepted Answer

True

Question 6

Additional Paid In Capital results when shares are issued for a price per share greater than the par value

Accepted Answer

True

Question 7

Which of the following are attributes of Preferred Stock? (Select all that apply)

Accepted Answer

"Convertible" means the stock can be converted to common shares, Payment of dividends has preference over common stock, "Callable" means the stock can be retired, Normally has no voting rights

BUS 230 Chapter 8

Questions 7

BUS 230 Chapter 8

Questions 7