Quiz #5
Accounting for Corporation-Basic Considerations
A. identify which of the following characteristics refer to a partnership and which
characteristics refer to a corporation by writing P or C on the blanks before the
numbers:
_____1. Unlimited liability
_____2. Ownership is separated from control of operation
_____3. May be organized without a written agreement
_____4. May not pay 30% tax
_____5. Ownership divided into shares of stock
_____6. Must be organized by at least five persons
_____7. Ownership can be easily transferred.
_____8. Profit can be readily withdrawn
_____9. Investments can be readily withdrawn
_____10. Death of an investor causes immediate dissolution
B. From the following statements, identify which are true and which are false. Write the
word TRUE or FALSE on the blanks before the number.
_______1. Preferred shares have preferential claims to dividends and assets
_______2. Subscribed shares are unissued shares.
_______3. Issued shares are fully paid shares
_______4. By-Laws of a corporation provide rules of governing/administering the affairs
of the business.
_______5. No par shares are issued at any amount.
_______6. Issued shares plus unissued shares equals authorized shares.
_______7. Outstanding shares are shares issued and in the hands of stockholders.
_______8. A shareholder buying 10 shares will be given 10 stock certificates.
_______9. If shareholder X has 10 shares bought for P1,000 and shareholder Y has also
10 shares bought for P2,000, Y has twice as much right as X.
_______10. Par value shares cannot be issued below P5.00.
_______11. San Miguel Purefoods Inc. is an example of an open or public corporation
whose stock is listed in the Philippines Stock Exchanges.
_______12. The Bureau of Internal Revenue is the government body tasked to regulate
the stock transactions of the corporations.
_______13. Par value shares may be issued as different prices above par.
_______14. Dividends are distributed earnings of the corporation
_______15. Just like a partner, a shareholder has unlimited liability over corporate debts.
C. Match the following terms with the appropriate definitions and write your answers on
the spaces provided before the numbers.
A. Authorized Capital K. Board of Directors
B. Broker L. States Value Stock
C. Preference Shares M. Stock Certificate
D. Shareholders’ Equity N. Dividends
E. Articles of Incorporation O. Treasury Shares
F. Par Value Stock P. Pre-emptive Right
G. Retained Earnings Q. Subscribed Share Capital
H. Legal Capital R. Organization Costs
I. Subscription Receivable S. Philippine Stock Exchange
“If we confess our sins, He is faithful and just to forgive us our sins and to cleanse us from
all unrighteousness.
>>1 John 1:9
Page | 1
Accounting for Corporation-Basic Considerations
A. identify which of the following characteristics refer to a partnership and which
characteristics refer to a corporation by writing P or C on the blanks before the
numbers:
_____1. Unlimited liability
_____2. Ownership is separated from control of operation
_____3. May be organized without a written agreement
_____4. May not pay 30% tax
_____5. Ownership divided into shares of stock
_____6. Must be organized by at least five persons
_____7. Ownership can be easily transferred.
_____8. Profit can be readily withdrawn
_____9. Investments can be readily withdrawn
_____10. Death of an investor causes immediate dissolution
B. From the following statements, identify which are true and which are false. Write the
word TRUE or FALSE on the blanks before the number.
_______1. Preferred shares have preferential claims to dividends and assets
_______2. Subscribed shares are unissued shares.
_______3. Issued shares are fully paid shares
_______4. By-Laws of a corporation provide rules of governing/administering the affairs
of the business.
_______5. No par shares are issued at any amount.
_______6. Issued shares plus unissued shares equals authorized shares.
_______7. Outstanding shares are shares issued and in the hands of stockholders.
_______8. A shareholder buying 10 shares will be given 10 stock certificates.
_______9. If shareholder X has 10 shares bought for P1,000 and shareholder Y has also
10 shares bought for P2,000, Y has twice as much right as X.
_______10. Par value shares cannot be issued below P5.00.
_______11. San Miguel Purefoods Inc. is an example of an open or public corporation
whose stock is listed in the Philippines Stock Exchanges.
_______12. The Bureau of Internal Revenue is the government body tasked to regulate
the stock transactions of the corporations.
_______13. Par value shares may be issued as different prices above par.
_______14. Dividends are distributed earnings of the corporation
_______15. Just like a partner, a shareholder has unlimited liability over corporate debts.
C. Match the following terms with the appropriate definitions and write your answers on
the spaces provided before the numbers.
A. Authorized Capital K. Board of Directors
B. Broker L. States Value Stock
C. Preference Shares M. Stock Certificate
D. Shareholders’ Equity N. Dividends
E. Articles of Incorporation O. Treasury Shares
F. Par Value Stock P. Pre-emptive Right
G. Retained Earnings Q. Subscribed Share Capital
H. Legal Capital R. Organization Costs
I. Subscription Receivable S. Philippine Stock Exchange
“If we confess our sins, He is faithful and just to forgive us our sins and to cleanse us from
all unrighteousness.
>>1 John 1:9
Page | 1
