ACC 231 Chapter 10 Question and
answers rated A+ 2025/2026
Stockholder's Equity - correct answer ✔-Paid in capital: amount amounts have invested
-Retained Earnings: amount of earnings the corporation as kept in the company (retained)
-Treasury Stock: Corporation's stock that the Corp has repurchased on the Stockmarket
Stockholder's Equity Formula - correct answer ✔Assets= Liabilities + Stockholder's Equity
Becoming a Corporation (3) - correct answer ✔-File articles of incorporation with the state
-Can then sell stock or ownership in the corporation
-Stockholders have rights
File articles of incorporation - correct answer ✔-nature of the firms business
-# of shares of stock to be issued
-list initial board of directors
Can then sell stock or ownership in the corporation - correct answer ✔1. Founders
2. Outside Angel Investors/ Venture Capital Firms
3. Go Public: Sell on a public market
-initial public offering (IPO)
-subsequent offerings are Seasoned Equity Offerings (SEQ)
Stockholders may have: - correct answer ✔-right to vote
-right to dividends
, -right to share in dividend of assets if corporation is dissolved
-preemptive right (right to keep your proportionate share
Stock - correct answer ✔may have a par value, stated value, or be no-par stock. the par and stated
values are for the most part meaningless these days. however, having a par or stated value changes the
journal entry when the stock is sold to investors
Issuing Stock - correct answer ✔initial offering of stock is to either an underwriter (who in turn sells the
stock to investors) or directly to the investor. this called the primary market
- after a company issues stock in the primary market, the stock is then traded amongst investors in the
secondary market
Issue Price - correct answer ✔the amount the corporation sells the stock for
Authorized Shares - correct answer ✔# of shares authorized by the board of directors
Issued Shares - correct answer ✔# of shares that have been sold/issued to investors
Outstanding Shares - correct answer ✔# of shares held by investors (Only differs from Outstanding
Shares if Share Repurchases Treasury Shares)
Classes or type of stock - correct answer ✔-Common Stock
-Preferred Stock
Common Stock - correct answer ✔-represents ownership (Class A comes with voting rights
- declared as an amount per share
answers rated A+ 2025/2026
Stockholder's Equity - correct answer ✔-Paid in capital: amount amounts have invested
-Retained Earnings: amount of earnings the corporation as kept in the company (retained)
-Treasury Stock: Corporation's stock that the Corp has repurchased on the Stockmarket
Stockholder's Equity Formula - correct answer ✔Assets= Liabilities + Stockholder's Equity
Becoming a Corporation (3) - correct answer ✔-File articles of incorporation with the state
-Can then sell stock or ownership in the corporation
-Stockholders have rights
File articles of incorporation - correct answer ✔-nature of the firms business
-# of shares of stock to be issued
-list initial board of directors
Can then sell stock or ownership in the corporation - correct answer ✔1. Founders
2. Outside Angel Investors/ Venture Capital Firms
3. Go Public: Sell on a public market
-initial public offering (IPO)
-subsequent offerings are Seasoned Equity Offerings (SEQ)
Stockholders may have: - correct answer ✔-right to vote
-right to dividends
, -right to share in dividend of assets if corporation is dissolved
-preemptive right (right to keep your proportionate share
Stock - correct answer ✔may have a par value, stated value, or be no-par stock. the par and stated
values are for the most part meaningless these days. however, having a par or stated value changes the
journal entry when the stock is sold to investors
Issuing Stock - correct answer ✔initial offering of stock is to either an underwriter (who in turn sells the
stock to investors) or directly to the investor. this called the primary market
- after a company issues stock in the primary market, the stock is then traded amongst investors in the
secondary market
Issue Price - correct answer ✔the amount the corporation sells the stock for
Authorized Shares - correct answer ✔# of shares authorized by the board of directors
Issued Shares - correct answer ✔# of shares that have been sold/issued to investors
Outstanding Shares - correct answer ✔# of shares held by investors (Only differs from Outstanding
Shares if Share Repurchases Treasury Shares)
Classes or type of stock - correct answer ✔-Common Stock
-Preferred Stock
Common Stock - correct answer ✔-represents ownership (Class A comes with voting rights
- declared as an amount per share
