Which form of business organization is established as a legal entity separate from its owners

1.Which form of business organization is established as a legal entity separate from its owners? Sole proprietorship Corporation Partnership None of these2.Which of the following is a disadvantage of a sole proprietorship? Entrenched management. Unlimited liability. Double taxation. Excessive regulation.3.Which of the following entities would have the \"Paid-in Capital in Excess\" account in the equity section of the balance sheet? A sole proprietorship. A municipality. A corporation. A partnership.4.Which of the following terms designates the maximum number of shares of stock that a corporation may issue? Number of shares authorized Number of shares issued Par value Number of shares outstanding5.The par value of a company\'s stock dictates the initial price of the stock. has little connection to the market value of the stock. is generally greater than market value. may be revised each time a company issues more shares of stock.6.Vargas Corp. issued 12,000 shares of no-par stock for $20 per share. Vargas was authorized to issue 35,000 shares. What effect will this event have on the company\'s financial statements? Increase assets by $700,000, increase equity by $700,000. Increase cash flow from investing activities by $240,000. Increase assets by $240,000, increase equity by $240,000. Increase cash flow from investing activities by $240,000, Increase assets and equity by $240,000.7.On January 2, 2013, Terra Corporation issued 20,000 shares of $20 par-value common stock for $22 per share. Which of the following statements is true? The Paid-in Capital in Excess of Par Value account will increase by $40,000. The Cash account will increase by $400,000. Total equity will increase by $400,000. The Common Stock account will increase by $440,000.8.When the Common Stock account is disclosed on the balance sheet, it is reported at: current market value average issue price lower of cost or market par or stated value9.Frazier Corporation shows a total of $660,000 in its Common Stock account and $1,600,000 in its Paid-in Capital Excess account. The par value of Frazier\'s common stock is $4. How many shares of Frazier stock have been issued? 165,000. 400,000. 235,000. It cannot be determined10.Which of the following statements about Treasury Stock is correct? The balance in the Treasury Stock account increases paid-in capital. The balance in the Treasury Stock account reduces total Stockholders\' Equity. The balance in the Treasury Stock account reduces paid-in capital. The balance in Treasury Stock reduces Retained Earnings.11.Which of the following is a negative or contra stockholders\' equity account? Treasury Stock Paid-in Capital in Excess of Par Retained Earnings Appropriated Retained Earnings12.Minerva Company was authorized to issue 100,000 shares of common stock. The company had issued 25,000 shares of stock when it purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock was: 95,000. 30,000. 25,000. 20,000.13.What effect will the declaration and distribution of a stock dividend have on net income and cash flows? Net income Cash flows A. None None B. None Decrease C. Increase None D. Decrease Decrease Option A Option D Option B Option C14.The issuance of a stock dividend will not affect total equity. increase retained earnings. decrease paid-in capital. decrease total assets.15.At the time that Kaplan Company issued a 2-for-1 stock split, the company had 1,000 shares of $6 par value common stock outstanding. Stockholders\' equity also contained $15,000 of additional paid in capital and $22,000 of retained earnings. Immediately after the stock split, the balance in the common stock account would amount to $12,000. the amount of paid-in capital would be equal to $15,000. the balance in the retained earnings account would amount to $11,000. the balance in the common stock account would amount to $6,000.16/In accordance with restrictive debt covenants, Morris Company appropriated $30,000 of retained earnings. Which of the following entries would be required to recognize this appropriation?-Cash 30000- Appropriated retained earnings 30000- Appropriated retained earnings 30000- Cash 30000- Retained earnings 30000- Appropriated retained earnings 30000- Appropriated retained earnings 30000- Retained earnings 3000017.Chad Associates retained $825,000 of net income in the business in 2013. If $85,000 was appropriated to satisfy the restrictive covenant of a loan agreement, what are the financial statements effects of the appropriation? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash FlowA. (65,000) NA (65,000) NA 65,000 (65,000) NAB. NA 65,000 (65,000) NA NA NA (65,000) FAC. NA NA NA NA NA NA NAD. (65,000) NA 65,000 NA NA NA (65,000) OA Option C Option A Option D Option B18.Kinco Industries had net income for the year 2013 of $650,000. Kinco had an average number of shares outstanding at the end of the year of 725,000 shares. The market price of Kinco\'s stock on January 1, 2013 was $14 per share. On December 31, 2013, the market price was $16 per share. The price-earnings ratio for Kinco at year end is closest to? 16.9:1 17.78:1 15.7:1 None of these is correct19.Which of the following is not a reason why a corporation may choose not to pay dividends? The board and management prefer to reinvest all net income for future growth. The corporation does not have adequate cash. The corporation does not have adequate retained earnings. All of these are valid reasons not to pay dividends.20.Curren Co. paid dividends of $3,000; $6,000; and $10,000 during 2010, 2011 and 2012, respectively. The company had 500 shares of 5%, $200 par value preferred stock outstanding that paid cumulative dividend. The amount of dividends received by the common shareholders during 2012 would be: $5,000. $4,000. $3,000. $2,000.


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