When a corporation sells its stock at a price above par value, they should credit the difference to paid-in capital.
Ch 11 LO.1 & LO.2

Quiz
•
Specialty
•
12th Grade
•
Hard
Lisa Parisi
Used 1+ times
FREE Resource
12 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
True
False
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Dividends can only be paid in cash.
True
False
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Dividends are reported as a percentage of the stock price for common stock.
True
False
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Common shareholders cannot be paid dividends until all preferred shareholders are paid.
True
False
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the below are true about preferred stocks?
They have voting rights and are paid dividends before common stockholders.
They don't have voting rights but are paid dividends before common stockholders.
They don't have voting rights but they are paid before common stockholders in the event of liquidation.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When a corporation buys back shares, it records the purchase at par value.
True
False
Answer explanation
The corporation uses the cost method, so they record the amount that they paid for the stock.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The sale of treasury stock increases shareholders' equity.
True
False
Create a free account and access millions of resources
Similar Resources on Quizizz
8 questions
Accounting Ratios

Quiz
•
11th - 12th Grade
15 questions
Sauces

Quiz
•
9th Grade - Professio...
10 questions
Publisher Module 2 Quiz 2

Quiz
•
9th - 12th Grade
16 questions
Mother Sauces Review

Quiz
•
9th - 12th Grade
12 questions
Business - Methods of Production

Quiz
•
8th - 12th Grade
10 questions
Groundhog Quiz

Quiz
•
3rd Grade - Professio...
15 questions
Skilled Trades & Tech (SS)

Quiz
•
9th - 12th Grade
17 questions
Accounting 1 - Ch. 9 Review

Quiz
•
KG - University
Popular Resources on Quizizz
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade