1. preferred stock offers shareholders the right to ________.

1.  Preferred stock offers shareholders the right to ________. 


 receive dividends after the common shareholders receive any dividends

 voting rights

 receive, in the event of bankruptcy, a share of the assets before common shareholders

 pre-emptive rights


2.  In exchange for stock, corporations may receive ________.  



 cash or other assets

 treasury stock


3.  ________ is the stock sold to the public. 


 Issued stock

 Outstanding stock

 Authorized stock

 Treasury stock


4.  The owners of ________ stock have the specific right to vote for members of the board of directors. 




 both common and preferred


5.  A monetary value assigned to and printed on each share of stock is called ________. 


 par value

 retained earnings

 paid-in capital

 additional paid-in capital


6.  AZ Best, Inc.’s corporate charter allows it to issue 1,500,000 shares of common stock. In 2011, its first year of business, the company sold 200,000 shares of common stock. In 2011, the company bought back 5,000 shares to be held as treasury stock. At December 31, 2011, how many shares of common stock are outstanding? 







7.  A difference between preferred stock and common stock is preferred shareholders ________. 

 have voting rights, while common shareholders do not

 have the right to share in any assets left if the company goes out of business after both the creditors     and common shareholders receive their share

 must receive their dividends before any of the common shareholders are paid

 have the right to buy new shares in order to maintain their percentage ownership before the company can issue new shares to the general public


8.  Team Shirts reported total shareholders’ equity of $80,000 on its October 31 balance sheet. During November, the business earned $270,000, and declared and paid a cash dividend of $20,000. What was total shareholders’ equity on November 30? 







9.  The date of record is the date ________. 


 when cash is actually paid to the shareholders

 on which the board of directors of a corporation announces that a dividend will be paid

 when earnings are declared

 used to determine exactly who will receive dividends


10.  A company has 2,000 shares of $100 par, 6%, noncumulative preferred stock outstanding. If the board of directors declares a dividend this year, how much will the preferred shareholders receive? 


 $200,000 in total

 $6 per share   

 $60 per share

 $100 per share


11.  Treasury stock ________. 


 is a contra-equity account

 is the amount of stock issued by the company

 is a contra-asset account

 results in an increase in total shareholders’ equity


12.  When a company buys shares of its own stock and holds them as treasury stock, ________. 


 its earnings per share will increase

 its earnings per share are not affected

 its earnings per share will decrease

 the market price of its stock will decrease


13.  A corporation’s distribution of new shares of stock to the corporation’s current shareholders is called a ________. 

 stock split

 stock dividend

 cash dividend

 liquidating dividend


14.  Equitable, Inc. issued no new common stock and had 100,000 shares issued and outstanding during 2011. The following information is taken from Equitable’s accounting records.

Net income for the year ended, December 31, 2011$370,000

Retained earnings, December 31, 2010$280,000

Retained earnings, December 31, 2011$360,000

Total shareholders’ equity at December 31, 2011$725,000


What was the dividend declared during the year ended December 31, 2011? 







15.  Team Shirts issued 20,000 shares of stock for $20 per share. This transaction increased Cash $400,000 and increased ________ $400,000. 


 Paid-in capital

 Treasury stock

 Retained earnings

 Additional paid-in capital


16.  PDG Corporation had a return on equity of 18%. Beginning and ending shareholders’ equity for the corporation were $570,000 and $560,000 respectively. There were 350,000 common shares and no preferred shares outstanding. What was net income for the year? 







17.  Use the following information for Equitable, Inc. to answer the following question(s). Equitable issued no new common stock and had 100,000 common shares issued and outstanding during 2011. Equitable has no preferred stock.


Net income for the year ended, December 31, 2011   $370,000

Retained earnings, December 31, 2010   $280,000

Retained earnings, December 31, 2011   $360,000

Total shareholders’ equity at December 31, 2011   $725,000

Total liabilities at December 31, 2010   $105,000

Total liabilities at December 31, 2011   $385,000

Total assets at December 31, 2010   $750,000

What was earnings per share for the year ended December 31, 2011? 







18.  Return on equity is ________. 


 net income divided by the average number of common shares outstanding

 total shareholders’ equity divided by the average number of outstanding common shares

 net income divided by sales

 net income divided by average shareholders’ equity


19.  Team Shirts had net income of $23,000. The balance sheet showed beginning and ending balances in shareholders’ equity of $100,000 and $110,000, respectively. There were no preferred shares and 20,000 common shares outstanding. Calculate the return on equity. 







20.  Risks associated with owning an investment in a company’s stock include the risk that ________. 


the company may not be able to buy back the stock when it matures

this particular stock becomes part of a diversified portfolio

the company will not be able to make regular interest payments to shareholders

the company will not be successful





Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.