Question :
41. Which of the following not true? A. Common and preferred stock usually : 1230427
41. Which of the following is not true?
A. Common and preferred stock usually have a par or stated value.
B. Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital or a similar account title.
C. Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital, or Capital in Excess of Par Value or a similar account title.
D. The amounts in Additional Paid-In Capital for a firm usually exceeds the amounts in Common Stock, indicating that the firm issued common stock for substantially more than par value, a common practice among publicly traded firms.
E. none of the above
42. Which of the following is not true?
A. Common and preferred stock usually have a no par or a no stated value.
B. Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital or a similar account title.
C. Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital, or Capital in Excess of Par Value or a similar account title.
D. The amounts in Additional Paid-In Capital for a firm usually exceeds the amounts in Common Stock, indicating that the firm issued common stock for substantially more than par value, a common practice among publicly traded firms.
E. none of the above
43. Which of the following is not true?
A. Common and preferred stock usually have a par or stated value.
B. Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital or a similar account title.
C. Firms report amounts received from issuing common stock in excess of the par or stated value as Additional Paid-In Capital, or Capital in Excess of Par Value or a similar account title.
D. The amounts in Common Stock for a firm usually exceeds the amounts in Additional Paid-In Capital indicating that the firm issued common stock for substantially more than par value, a common practice among publicly traded firms.
E. none of the above
44. Which of the following is not true?
A. Firms accumulate information about revenues and expenses during a reporting period to enable the preparation of the income statement.
B. Net income for a period increases net assets (assets minus liabilities) and retained earnings.
C. Net loss for a period reduces net assets (assets minus liabilities) and retained earnings.
D. Net income for a period increases the amounts in Common Stock and Additional Paid-In Capital, a common practice among publicly traded firms.
E. none of the above
45. Which of the following is not true?
A. Firms may periodically distribute net assets generated by earnings to shareholders as a dividend.
B. Firms reduce net assets and retained earnings for the dividend distribution.
C. Retained earnings on the balance sheet provides a measure of the cumulative net assets generated by earnings in excess of dividends declared.
D. The retention of net assets generated by operations represents the primary source of funds for most successful businesses.
E. none of the above.
46. The term capital can mean
A. cash, only.
B. long-term assets, only.
C. all sources of funding, only.
D. shareholders’ equity, only.
E. cash, long-term assets, all sources of funding, or shareholders’ equity,
47. Most publicly traded firms operate as corporations. The corporate form has which of the following advantage(s)?
A. The corporate form provides the owner (shareholder) with limited liability.
B. The corporate form allows the firm to raise funds by issuing shares to investors in varying amounts.
C. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm.
D. The corporation has legal status separate from its owners.
E. all of the above
48. Most publicly traded firms operate as corporations. Which of the following is/are not true?
A. The corporate form provides the owner unlimited liability.
B. The corporate form allows the firm to raise funds by issuing shares to investors in varying amounts.
C. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm.
D. The corporation has legal status separate from its owners.
E. all of the above
49. Most publicly traded firms operate as corporations. Which of the following is/are not true?
A. If the corporation becomes insolvent, creditors can claim only the assets of the corporate entity and cannot claim the assets of the individual owners.
B. To settle debts of general partnerships, creditors have a claim on the owners’ business and personal assets.
C. To settle debts of sole proprietorships, creditors have a claim on the owners’ business and personal assets. .
D. In recent years, many partnerships and sole proprietorships have become limited liability companies (LLCs), or limited liability partnerships (LLPs), to limit their owners’ personal liability for business debts and other obligations.
E. none of the above
50. Most publicly traded firms operate as corporations. Which of the following is/are not true?
A. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm.
B. The transfer of ownership interests is a transaction between shareholders and does not involve the firm whose shares change hands.
C. Investors make capital contributions under a contract between themselves and the corporation.
D. The corporation has legal status separate from its owners.
E. none of the above
