acct 321_Question

1) Which of the following describes a term bond?

A) A bond that repays principal in installments

Don't use plagiarized sources. Get Your Custom Essay on
acct 321_Question
Just from $13/Page
Order Essay

B) A bond that gives the bondholder a claim for specific assets if the issuer fails to pay

C) A bond that matures at one specified time

D) A bond that is not backed by specific assets

2) Which of the following describes a secured bond?

A) A bond that repays principal in installments

B) A bond that gives the bondholder a claim for specific assets if the issuer fails to pay

C) A bond that matures at one specified time

D) A bond that is not backed by specific assets

3) Which of the following characteristics is an advantage of the corporate form of business?

A) Higher degree of government regulation

B) The potential to raise large amounts of capital

C) Separation of ownership and management

D) Double taxation

4) On December 2, 2014, Ewell Company purchases a piece of land from the original owner.In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value.The land has been appraised at a market value of $400,000.The journal entry to record this transaction would include which of the following items?

A) Debit Common stock $8,000 and debit Paid-in capital $392,000.

B) Credit Common stock $8,000 and credit Paid-in capital $392,000.

C) Credit Common stock $400,000.

D) Debit Cash $400,000.

5) Please refer to the equity section of the balance sheet shown below:

Preferred stock

$100 par, 10,000 shares authorized, 1,000 shares issued


Common stock

$1 par, 500,000 shares authorized, 20,000 shares issued


Paid-in capital in excess of par


Retained earnings


Total stockholders’ equity


The amount shown for Retained earnings would be called a(n):

A) net loss.

B) earnings shortfall.

C) retained earnings deficit.

D) loss on sale of stock.

6) Please refer to the equity section shown below:

Preferred stock, $100 par, 4% non-cumulative


1,000 shares authorized, 200 shares outstanding

Common stock, $0.01 par


1,000,000 shares authorized, 40,000 shares outstanding

Paid-in capital in excess of par


Retained earnings


Total stockholders’ equity


Assume the preferred shares have no stated liquidation value. The preferred shares are non-cumulative, so there are no dividends in arrears.

Please calculate the book value per share of common stock.

A) $30.00 per share

B) $8.99 per share

C) $9.00 per share

D) $29.50 per share

7) Which of the following is a reason why a company would do a stock split?

A) To defend against a hostile takeover

B) To generate additional sales revenues

C) To reduce the market price at which the stock is trading

D) To provide the shareholders with something of value, when the company cannot afford a cash dividend

8) Please refer to the following information for Peartree Company:

•Common stock, $1.00 par, 100,000 issued, 95,000 outstanding

•Paid-in capital in excess of par: $2,150,000

•Retained earnings:$910,000

•Treasury stock: 5,000 shares purchased at $20 per share

If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, what journal entry will be required?

A) Debit Treasury stock $18,000 and credit Retained earnings $18,000.

B) Debit Treasury stock $20,000, credit Loss on sale $2,000 and credit Cash $18,000.

C) Debit Treasury stock $18,000 and credit Cash $18,000.

D) Debit Cash $18,000 and credit Treasury stock $18,000.

9) Which of the following would be a reason for a company to restrict its cash dividends or treasury stock purchases?

A) Because the company needs treasury stock to offer as performance incentives to upper management

B) In order to give shareholders stock dividends

C) Due to the desire of shareholders to retain the company’s earnings for future growth and capital expenditures

D) Due to requirements of lenders or creditors that companies maintain enough equity to meet their obligations

10) At January 1, 2014, Foxmore Company had 80,000 shares of common stock outstanding and no preferred stock. During the year, they issued 40,000 additional shares of common stock. At December 31, 2014, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. In addition, Foxmore reported the following results for the year 2014:

Sales revenues from regular business operations


Cost of goods sold


Operating expenses from their regular business operations


Gain on disposal of several items of property, plant & equipment


Income tax expense on continuing operations


Loss on the termination of a discontinued business segment, net of tax


Losses on damage caused by earthquake, net of tax


At December 31, 2014, how much is the earnings per share for income (loss) from continuing operations?

(Please round all calculations to the nearest cent.)

A) $(1.20)

B) $7.85

C) $10.65

D) $11.85

My Essay Gram
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(405) 367-3611Email