Advanced Accounting Chapter 10

The initial issue of a security on a public exchange is

• the registration statement

• par-value common stock

• an initial public offering

• double taxation

The document submitted to the SEC for permission to sell a security on a public exchange is a(n)

• registration statement

• 10-Q

• 10-K

• Initial public offering

A legal document that identifies basic characteristics of a corporation, which is a part of the application submitted to a state to become a corporation, is the

• 10-K

• IPO

• articles of incorporation

• registration statement

A value assigned to a share of stock and printed on the stock certificate is

• the par value

• preferred stock

• common stock

• no-par-value stock

The total shares of ownership in a corporation is called

• capital stock

• convertible stock

• a stock certificate

• ownership capital

The number of shares of common stock received when a security is converted is

• the conversion option

• the conversion price

• the conversion ratio

• none of these

An organization with the legal rights of a person which many persons or other corporations may own is a(n)

• proprietorship

• partnership

• LLP

• corporation

A group of persons elected by the stockholders to govern a corporation is

• the stockholders

• management

• the board of directors

• the chief executive officers

The legal right for a business to conduct operations as a corporation is

• common stock

• the charter

• the articles of incorporation

• incorporation authority

The ability of a security to be traded for a specified number of shares of another security is

• its conversion price

• the registration statement

• the conversion option

• double taxation