Devry ACCT 212 Week 6 Quiz
Question 1. (TCO 7) Stockholders of a corporation directly elect the
- board of directors.
- president of the corporation.
- chief financial officer of the corporation
- chairperson of the board.
Question 2. (TCO 7) Which one of the following is not a stockholder’s right of ownership in a corporation?
- To vote and elect the board of directors
- To receive a proportionate share of the assets upon liquidation
- To maintain one’s proportional share of ownership in the corporation
- To declare dividends
Question 3. (TCO 7) The difference between the issue price of the stock and the par value of the stock is
- market value.
- par value.
- additional paid-in capital.
- preferred stock.
Question 4. (TCO 7) Stock that a corporation purchases from shareholders is called
- treasury stock.
- authorized stock.
- issued stock.
- outstanding stock.
Question 5. (TCO 7) The effect of the declaration of a cash dividend is a(n)
- increase to liabilities and a decrease to stockholders’ equity.
- increase to liabilities and a decrease to assets.
- increase to assets and a decrease to liabilities.
- increase to stockholders’ equity and a decrease to assets.
Question 6. (TCO 7) Book value per share of common stock is computed by dividing
- total paid-in capital by the number of common shares of stock issued.
- total paid-in capital by the number of common shares of stock outstanding.
- total stockholders’ equity by the number of common shares of stock issued.
- total stockholders’ equity by the number of common shares of stock outstanding.
Question 7. (TCO 1) The main purpose of the statement of cash flows is to
- provide information about the cash receipts and cash payments during a period.
- provide information about the investing and financing activities during a period.
- prove that revenues exceed expenses if there is a net income.
- assist banking relationships.
Question 8. (TCO 1) The statement of cash flows will not report
- the number of checks not written at the end of the period.
- how cash was used in the current period.
- changes in the cash balance for the current period.
- the sources of cash in the current period.
Question 9. (TCO 1) The three types of activities reported on the statement of cash flows are
- operating, investments, and financing.
- operating, investing, and free flow.
- operating, investing, and financing.
- operating, indirect, and direct.
Question 10. (TCO 1) Financing activities involve
- issuing debt.
- acquiring long-term assets.
- lending money.
- acquiring investments.
