Please make a way to answer all the questions. I cannot separatethe questions anymore because I only have 1 question left to posthere on Chegg, so please be considerate. Thank youu!
21. Which of the following statements is true oftreasury stock?
a.It usually has a debit balance.
b.It is classified as an asset on the balance sheet.
c.It is considered outstanding stock.
d.It allows management to vote for members of the board ofdirectors.
22. When common stock is issued in exchange for anoncash asset and the market value of the stock cannot bedetermined, the acquired asset should usually be recorded at anamount equal to the
a.book value of the noncash asset.
b.fair value of the noncash asset.
c.undepreciated cost of the noncash asset.
d.book value of the stock.
23. If treasury stock is sold for less than its cost,and there were no previous treasury stock sales, the differencebetween the sales price and cost is debited to
a.paid-In capital, treasury stock.
b.paid-in capital in excess of par.
c.retained earnings.
d.common stock.
24. Treasury stock is classified on the balance sheet aswhat type of account?
a.Current asset
b.Contributed capital
c.Long-term investment
d.Contra-equity
25. A loss on the sale of treasury stock is recognizedwhen treasury stock is sold at
a.a higher price than the stock's market value.
b.a higher price than the stock's cost.
c.a higher price than the stock's par or stated value.
d.None of these are correct.
26. Treasury stock is stock that is
a.issued and outstanding.
b.authorized and outstanding.
c.issued but not outstanding.
d.authorized but not issued.
27. A Paid-In Capital account can be credited with allof the following transactions EXCEPT
a.the issuance of no-par stock with a stated value.
b.the purchase of treasury stock.
c.the issuance of par stock issued at a price greater than parvalue.
d.the reissuance of treasury stock.
28. When common stock is issued in exchange for anoncash asset and the market value of the stock is determinable,the acquired asset should usually be recorded at an amount equalto
a.the market value of the stock.
b.the par value of the stock.
c.the book value of the noncash asset.
d.the fair value of the noncash asset.
29. Which of the following is NOT true regarding "legalcapital"?
a.The dollar amount of legal capital is established by federalstatutes.
b.It is intended as a means to protect a company'screditors.
c.It is intended to prevent corporations from paying excessivedividends.
d.It represents an amount that cannot be returned to the ownersso long as the corporation exists.
30. Compared with preferred stock, common stock usuallyhas a favorable preference in terms of
a.dividends.
b.resale value.
c.voting rights.
d.liquidated assets.
31. Which of the basic stockholder rights do preferredstockholders normally give up?
a.The right to vote.
b.The right to receive dividends when they are declared.
c.The right to excess assets after creditor claims aresatisfied.
d.All of the above.
32. Which of the following is a basic right of apreferred stockholder?
a.The preemptive right.
b.The right to receive a dividend.
c.The right to vote for the board of directors.
d.All of these.
33. The investors in a corporation arecalled
a.board of directors.
b.corporate owners.
c.stockholders.
d.management.
34. Which of the following is NOT a basic right of acommon stockholder?
a.The right to receive a dividend.
b.The preemptive right.
c.The right to vote for the board of directors.
d.All of these are basic rights of a common stockholder.
35. Which type of business organization is characterizedby limited liability?
a.Proprietorship
b.Partnership
c.Corporation
d.Corporation, proprietorship, and partnership
36. Which of the following is NOT true of acorporation?
a.A corporation has the ability to raise large amounts ofcapital.
b.The owners of a corporation have unlimited liability.
c.A corporation has easy transferability of ownership.
d.A corporation is taxed separately from its owners.
37. The right of current stockholders to purchaseadditional shares in order to maintain the same percentageownership of new shares is called
a.the voting rights privilege.
b.preemptive right.
c.liquidation.
d.the cumulative preference.
