Question :
61. Many firms disaggregate the initial amounts they received from shareholders : 1230536
61. Many firms disaggregate the initial amounts they received from shareholders for common shares into the _____ and the amounts received in excess of this value, called additional paid-in capital (APIC), share premium, or capital contributed in excess of par value.
A. par value of the shares
B. nominal value of the shares
C. stated value of the shares
D. all of the above
E. none of the above
62. Many firms disaggregate the initial amounts they received from shareholders for common shares into the par or nominal or stated value of the shares and the amounts received in excess of this value, called:
A. additional paid-in capital (APIC),
B. share premium
C. capital contributed in excess of par value.
D. all of the above
E. none of the above
63. Which of the following is/are true about amounts received from shareholders for the firm’s shares when the firm first issued them.?
A. the firm assigns the par value of a share of stock at an amount it chooses
B. Par values are typically small, often $1 or less per share
C. Par values are rarely equal the amounts the firm receives when it issues the shares
D. the sum of the par value amount and the additional paid-in capital amount is the total amount received from shareholders
E. all of the above are true
64. The sum of the par value amount and the additional paid-in capital amount is the total amount received from shareholders for the shares when the firm first issued them. This total amount is also called _____.
A. contributed capital
B. paid-in capital.
C. treasury stock
D. choices a and b
E. none of the above
65. Any subsequent sale of a firm’s previously issued common shares from one investor to another (such as occurs on public stock exchanges):
A. increases the recorded amounts of shareholders’ equity.
B. decreases the recorded amounts of shareholders’ equity.
C. has as no effect on the recorded amounts of shareholders’ equity.
D. increases or decreases the recorded amounts of shareholders’ equity depending on the facts and circumstances
E. none of the above
66. In a rising stock market, the result of any subsequent sale of a firm’s previously issued common shares from one investor to another (such as occurs on public stock exchanges) :
A. the total paid-in capital amount reported on a balance sheet will usually be less than the current market value of the common shares.
B. the total paid-in capital amount reported on a balance sheet will usually be greater than the current market value of the common shares.
C. the total paid-in capital amount reported on a balance sheet will usually be equal to the current market value of the common shares.
D. the total paid-in capital amount reported on a balance sheet will be eliminated.
E. none of the above
67. An investor can easily ascertain the _____ of common equity for a given publicly traded firm by looking up the most recent share price (as reported in various online services) and then multiplying this share price times the number of common shares outstanding, as reported on the balance sheet.
A. market value
B. state value
C. par value
D. nominal value
E. liquidation value
68. _____ measures the net assets generated by a firm from operations exceeding dividends declared.
A. Assets
B. Liabilities
C. Shareholders’ equity
D. Additional Paid-in-Capital
E. Retained earnings
69. The _____ account accumulates the amounts of the undistributed earnings over time.
A. Treasury Stock
B. Cash
C. Additional Paid-in-Capital
D. Retained Earnings
E. Common Stock
70. When a firm has accumulated losses, rather than profits, the Retained Earnings account is typically called:
A. Negative cash balance
B. Ordinary Loss
C. Accumulated Excess
D. Accumulated Deficit
E. Insolvency
