ACCT 2300 Final Exam TTU Questions & Answers (Grade A+).docx

ACCT 2300 Final Exam TTU Questions
& Answers (Grade A+)
The two main categories of stockholders' equity are -
correct answer ✅retained earnings and paid in capital


Which of the following is not considered to be an advantage of a
corporation? -
correct answer ✅Double taxation


Stockholders of a corporation directly elect the -
correct answer ✅board of directors


Which of the following is a characteristic of a corporation? -
correct answer ✅Limited liability of stockholders


The basic form of capital stock is -
correct answer ✅a share of common stock


Preferred stock is least likely to have which of the following
characteristics? -
correct answer ✅Preference as to voting


The par value of a share of common stock -
correct answer ✅is stated in the charter.

, ACCT 2300 Final Exam TTU Questions
& Answers (Grade A+)

What is the total paid-in capital for Century Company at March 31,
2019? -
correct answer ✅Common stock + Paid-in capital= Total paid in
capital


68 Million+ 340 Million= 408 Million


If a corporation issues 3,000 shares of $2.40 par value common
stock for $27,000, the journal entry would include a credit to -
correct answer ✅Number of Shares x Par Value = Par value of CS


3,000 shares x $2.40 Par = 7,200 to Common Stock


Best Player, Inc., issued 300,000 shares of no-par common stock for
$15 per share. The journal entry to record the issuance would be -
correct answer ✅Debit Cash 4,500,000


Credit Common Stock 4,500,00