Question : 65.              Callisto began 2000 with 100,000 shares of $3 par : 1370046

65.              Callisto began 2000 with 100,000 shares of $3 par common stock.  The firm declared a 3-for-1 stock split on March 1, 2010.  How will the stock split affect Callisto’s stockholders’ equity?

A)increase

B)decrease

C)no effect

D)unable to determine from the information given

66.              Starfury Corporation has 1,000,000, $1 par shares of common stock authorized.  A total of 400,000 shares have been sold to stockholders and 10,000 shares have been repurchased by the firm.  How many shares are outstanding?

A)1,000,000

B)600,000

C)400,000

D)390,000

67.              Babylon Corporation has 1,000,000, $1 par shares of common stock authorized.  A total of 400,000 shares have been sold to stockholders and 10,000 shares have been repurchased by the firm for later resale.  How many shares are issued and outstanding?

Issued                Outstanding

A)  1,000,000                 400,000

B)     390,000                 390,000

C)     400,000                 390,000

D)     400,000                 400,000

68.   Aslo Corporation has 10,000,000, $1 par shares of common stock authorized.  A total of 6,000,000 shares have been sold to stockholders in 2001 and in 2008 Aslo purchased 50,000 of its own stock.  Then in 2010 5,000 shares of the treasury shares were sold.  As of  the end of 2010 how many shares are issued and outstanding?

Issued                Outstanding

A)  6,000,000                 5,955,000

B)  10,000,000               9,955,000

C)   6,000,000                6,045,000

D)   6,050,000                6,045,000

69.               Zathras Corporation has 2,000,000, $1 par shares of common stock authorized.  A total of 800,000 shares have been sold to stockholders and 40,000 shares have been repurchased by the firm and retired.  How many issued and outstanding shares does Zathras have?

Issued                Outstanding

A)   2,000,000              800,000

B)      800,000              800,000

C)      800,000              760,000

D)      760,000              760,000

70.              If a corporation goes out of business, whose claims would be satisfied last, if at all?

A)preferred shareholders

B)common shareholders

C)employees

D)creditors

71.              Which of the following is not a right of common stockholders?

A)Preemptive right

B)Right to vote

C)Right to dividend when declared

D)All of the above are rights of common stockholders.

72.   Which of the following is not a right of common stockholders?

A)Preemptive right

B)Right to vote

C)Right to dividend when declared

D)   The redemptive right

E)All of the above are rights of common stockholders.

73.              When a corporation issues additional stock, current shareholders will be able to purchase new shares in proportion to their current ownership because of the

A)liquidation right

B)preemptive right

C)redemption privilege

D)cumulative privilege

74.              Creditors are interested in a corporation’s stockholders’ equity because

A)stockholders’ equity will be used to pay the creditors’ claims

B)they get to vote in corporate elections when their claims are past due

C)they are entitled to dividends before any are paid to common stockholders

D)stockholders’ equity represents a margin of safety for meeting their claims on assets