Financial And Managerial Accounting 8th Edition By John Wild – Test Bank

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Edition: 8th Edition

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Financial And Managerial Accounting 8th Edition By John Wild – Test Bank

Name: Financial And Managerial Accounting 8th Edition By John Wild – Test Bank
Brand: Test Bank
SKU: 2975
Price: 40 USD
Availability: InStock
Rating: 4.5 (280 reviews)

Chapter 11 Corporate Reporting and Analysis

1) A corporation is a legal entity separate from its owners.

Answer: TRUE
Difficulty: 1 Easy
Topic: Characteristics of Corporations
Learning Objective: 11-C1 Identify characteristics of corporations and their organization.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Legal; FN Reporting

2) Corporations avoid many of the state regulations and controls that proprietorships and partnerships are subject to.

Answer: FALSE
Difficulty: 1 Easy
Topic: Characteristics of Corporations
Learning Objective: 11-C1 Identify characteristics of corporations and their organization.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Legal; FN Reporting

3) Organization expenses of a corporation often include legal fees and promoter fees.

Answer: TRUE
Difficulty: 2 Medium
Topic: Characteristics of Corporations
Learning Objective: 11-C1 Identify characteristics of corporations and their organization.
Bloom’s: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Legal; FN Reporting

4) Shareholders in a corporation have the power to bind the corporation to contracts.

Answer: FALSE
Difficulty: 2 Medium
Topic: Characteristics of Corporations
Learning Objective: 11-C1 Identify characteristics of corporations and their organization.
Bloom’s: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Legal; FN Decision Making

5) A proxy is a document that gives a designated agent the right to vote a shareholder’s stock.

6) Common shareholders always share equally with all other shareholders (including preferred shareholders) in dividends.

Answer: FALSE
Difficulty: 2 Medium
Topic: Issuance of Preferred Stock
Learning Objective: 11-C2 Explain characteristics of, and distribute dividends between, common and preferred stock.
Bloom’s: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Legal; FN Measurement

7) A preemptive right means shareholders can purchase their proportional share of common stock issued later by the corporation.

8) Stock is attractive to investors because stockholders are not liable for the corporation’s actions and debts and because stock is easily transferred.

9) A registrar keeps stockholder records for dividend payments and stockholder meetings.

10) Stockholders’ equity consists of paid-in capital and retained earnings.