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Accounting Final: Jump To Navigation Frame

Topics: Balance sheet, Generally Accepted Accounting Principles, Revenue Pages: 26 (4278 words) Published: February 26, 2013
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Title:| Principles of Accounting II – Exam 2|
Started:| November 21, 2009 12:18 PM|
Submitted:| November 21, 2009 2:06 PM|
Time spent:| 01:48:10 |
Total score:| 120/150 = 80% Total score adjusted by 0.0 Maximum possible score: 150 | 1.| |
 | Which of the following is a characteristic of a corporation? | |
 | Student Response| Value| Correct Answer| Feedback| 1. | A corporation is not taxed on the corporation's business income.| |   |  | 2. | A corporation has a limited life.| |   |  |

3. | The owners of a corporation have limited liability for the corporation's debts.| 100% |   |  | 4. | The owners of a corporation have co-ownership of the property of the corporation.| |   |  |

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Score:| 3/3 |
Comments:| |
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2.| |
 | Which of the following characteristics of a corporation exists because corporations pay taxes on corporate earnings? | |
 | Student Response| Value| Correct Answer| Feedback| 1. | Double taxation| 100% |   |  |
2. | Separation of ownership and management| |   |  | 3. | Transferability of ownership| |   |  |
4. | No mutual agency| |   |  |
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Score:| 3/3 |
Comments:| |
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3.| |
 | Which of the following would be included in the entry to record the issuance of 5,000 shares of $10 par value common stock at $13 per share? | |
 | Student Response| Value| Correct Answer| Feedback| 1. | Common stock would be debited for $50,000.| |   |  | 2. | Common stock would be credited for $65,000.| |   |  | 3. | Cash would be debited for $65,000.| 100% |   |  | 4. | Paid in capital in excess of par, common would be debited for $5,000.| |   |  |

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Score:| 3/3 |
Comments:| |
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4.| |
 | Which of the following is TRUE of retained earnings? | |
 | Student Response| Value| Correct Answer| Feedback| 1. | Retained earnings are a liability on the corporate balance sheet.| |   |  | 2. | Retained earnings do not appear on any financial statement.| |   |  | 3. | Retained earnings represent investments by the stockholders of a corporation.| |   |  | 4. | Retained earnings represent capital that the corporation has earned through profitable operations.| 100% |   |  |

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Score:| 3/3 |
Comments:| |
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5.| |
 | The following information is from the balance sheet of Tudor Corporation as of December 31, 2010. Preferred stock, $100 par|  | $ 500,000| Paid-in capital in excess of par - preferred|  | 35,000| Common stock, $1 par|  | 190,000|

Paid-in capital in excess of par - common|  | 380,000|
Retained earnings|  | 131,500|
Total stockholders' equity|  | $1,236,500|
| | |

Preferred stock, $100 par
What was the average issue price of the common stock shares? | |
 | Student Response| Value| Correct Answer| Feedback| 1. | The average price cannot be determined from the information given.| |   |  | 2. | $1.00| |   |  |
3. | $3.00| 100% |   |  |
4. | $1.90| |   |  |
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Score:| 3/3 |
Comments:| |
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6.| |
 | The following information is from the balance sheet of Tudor Corporation as of December 31, 2010. Preferred stock, $100 par|  | $ 500,000| Paid-in capital in excess of par - preferred|  | 35,000| Common stock, $1 par|  | 190,000|

Paid-in capital in excess of par - common|  | 380,000|
Retained earnings|  | 131,500|
Total stockholders' equity|  | $1,236,500|
| | |

What was the total paid-in capital as of December 31, 2010? | |
 | Student Response| Value| Correct Answer| Feedback| 1. | Total paid-in capital cannot be determined from the information given.| |   |  | 2. | $ 956,000| |   |  |
3. | $1,236,600| |   |  |
4....
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