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Chapter 11 Quiz
Reporting and Analyzing Equity
25 pts

This quiz is all multiple choice problems. Please choose the best possible answer for each problem. Each problem is worth one point.
Problem 1:  An amount of assets defined by state law that stockholders must invest and leave invested in a corporation is called the:  A. Par value of preferred B. Minimum legal capital C. Premium capital D. Stated value E. Working capital
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Problem 2:  The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is:  A. Always equal to its par value B. Always equal to its stated value C. Referred to as contributed capital D. Referred to as retained earnings E. Always below its stated value
Answer:
Problem 3: Stated value of no-par stock is:  A. Another name for redemption value B. An amount assigned to par value stock by the state of incorporation C. The market value of the stock on the date of issuance D. The difference between the par value of stock and the amount below or above par value contributed by the stockholder E. An amount assigned to no-par stock by the corporation’s board of directors
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Problem 4: Stockholders’ equity consists of:  A. Long-term assets B. Contributed capital and retained earnings C. Contributed capital and par value D. Retained earnings and cash E. Premiums and discounts
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Problem 5: A class of stock that does not have a par value and can usually be issued at any price without creating a minimum legal capital deficiency is called:  A. Convertible stock B. No-par stock C. Callable stock D. Noncumulative stock E. Discounted stock
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Problem 6: A corporation’s minimum legal capital is often defined to be the total par value of the shares:  A. Issued B. Authorized C. Subscribed D. Outstanding E. In treasury
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Problem 7:  Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared…