Acc 557 Wk 7 Chapter 9,10 Quiz - All Possible Questions

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ACC 557 WK 7 Chapter 9,10 Quiz - All Possible Questions

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    1.     A corporation is not an entity which is separate and distinct from its owners.



    2.     A corporation can be organized for the purpose of making a profit or it may be not-for-profit.



    3.     A corporation acts under its own name rather than in the name of its stockholders.



    4.     If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation.


    5.     A corporation must be incorporated in each state in which it does business.



    6.     A stockholder has the right to vote in the election of the board of directors.



    7.     A proxy is a legal document that instructs a stockholder’s agent how to vote shares of stock for the stockholder.


    8.     As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.



    9.     The par value of common stock must always be equal to its market value on the date the stock is issued.



  10.     When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock becomes legal capital.



  11.     A corporation can issue more shares than it is authorized in its charter, if the board of directors approves of an increase in the number of authorized shares.



  12.     The market value of a corporation's stock is determined by the number of shares that the corporation has been authorized to issue.



  13.     Stock can be issued only in exchange for cash.


  14.     The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.