Accounting II - Chapter 11 Assessment

Since the incorporations are the investors forming the corporation, a separate capital account is maintained for each of these stockholders.

The common stock dividend rate may be less than, equal to, or more than the preferred dividend rate.

Subscriptions Receivable is listed in the Current Assets section of the balance sheet.

The portion of net income that a business retains may be used to finance future business expansion and improvement.

On the date of record, Natural Essence Co. has 2,000 shares of 9%, $100.00 par-value preferred stock and 10,000 shares of $10.00 par-value common stock outstanding. The declared amount of the dividend ia $25,000.00. The total dividend to be paid on the preferred stock is

A written application requesting permission to form a corporation is called the

A share of stock that has an authorized value printed on the stock certificate is called

As an investor, you must own the stock on the date of record to receive a dividiend declared by the corporation.

The date on which a board of directors votes to distribute a dividend is called the

When dividends are paid, most corporations ussue a separate check to each investor.

Entering an agreement with a corporation to buy capital stock and pay at a later date is knnown as

A corporatio is obligated to pay a divident when it has been declard by the board of directors.

The account debited when a stock subscription for common stock is received is

The first step in forming a corporation is depositing money in the corporation's checking account to pay expenses such as legal fees and filing costs.

Owners of corporations elect a board of directors to conduct the day-to-day management of business.

An organizaton with the legal rights of a person and that may be owned by many persons is known as a(n)

No-par-value stock that is assigned a value by a corporation is called

Total shares of ownership in a corporation are known as common stock.

As payments are received on stock subscriptions, the corresponding portion of the capital stock is issued to the investor.

In the United States, the offering, buying, and selling of stock is regulated by the Securites and Exchange Commission (SEC).

Preferred stock derives its name from the fact that prefered stockholders get the first right to vote in all matters of business that come before the stockholders.

Written evidence of the number of shares that each stockholder owns in a corporation is called a (n)

Each unit of ownership in a corporation is known as a(n)

Since stock is frequently traded on stock exchanges, corporations do not need to keep track of who owns the stock.

Sharing in the earnings of a corporation is a right of stockholders that is exercised when the stock is sold.