1|Page
MGMT 200 FINAL EXAM (PURDUE UNIVERSITY) NEWEST
2026/2027 FINAL EXAM, PRACTICE EXAM AND STUDY GUIDE
300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||JUST OUT!!!
Which of the following is the most likely to have
voting rights?
a. Common Stock
b. Preferred Stock
c. Bonds
d. They all have similar voting rights - ANSWER-A
ATI Company has not declared or paid
dividends on its cumulative preferred stock in the
last three years. These dividends should be
reported
a. as a current liability.
b. as a reduction in stockholders' equity.
c. in a note to the financial statements.
d. as a noncurrent liability. - ANSWER-C
Luther Inc., has 4,000 shares of 6%, $50 par value,
,2|Page
cumulative preferred stock and 100,000 shares of $1 par
value common stock outstanding at December 31, 2015,
and December 31, 2014. The board of directors declared
and paid a $10,000 dividend in 2014. In 2015, $48,000 of
dividends are declared and paid. What are the dividends
received by the preferred stockholders in 2015?
a) $34,000
b) $24,000
c) $14,000
d) $12,000 - ANSWER-C
The Surf's Up issues 1,000 shares of 6%, $100 par value
preferred
stock at the beginning of 2017. All remaining shares are
common
stock. The company was not able to pay dividends in 2017, but
plans to pay dividends of $18,000 in 2018. Assuming the
preferred
stock is noncumulative, how much of the $18,000 dividend will
be
paid to preferred stockholders and how much will be paid to
,3|Page
common stockholders in 2018?
a. $6,000 to preferred stockholders and $12,000 to common
stockholders.
b. $18,000 to preferred stockholders and $0 to common
stockholders.
c. $12,000 to preferred stockholders and $6,000 to common
stockholders
d. $9,000 to preferred stockholders and $9,000 to common
stockholders - ANSWER-A, $6 dividend/share x 1,000 shares =
$6,000
Which of the following stock terms is least like the
others?
a. Market value
b. Stated value
c. Par Value
d. Legal Capital - ANSWER-A
Preferred Stock= $60,000
Common Stock= 112,000
, 4|Page
Additional Paid‐in Capital, Preferred =14,000
Additional Paid‐in Capital, Common =36,000
Retained Earnings =80,000
A balance sheet prepared on December 31, 2016, would
report total contributed capital of
a. $172,000
b. $186,000
c. $222,000
d. $302,000 - ANSWER-C
True or False: For accounting purposes, stated value is treated
differently than par value. - ANSWER-False
True or False: The word preferred in the phrase preferred stock
means that an owner of preferred stock has some
advantages over a bondholder - ANSWER-False
Knomark Corporation has 3,000 shares of $200 par value, 7
percent cumulative preferred stock, and 10,000 shares of $20
par value common stock outstanding during its first five years
of operation. Knomark Corporation paid cash dividends as
MGMT 200 FINAL EXAM (PURDUE UNIVERSITY) NEWEST
2026/2027 FINAL EXAM, PRACTICE EXAM AND STUDY GUIDE
300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||JUST OUT!!!
Which of the following is the most likely to have
voting rights?
a. Common Stock
b. Preferred Stock
c. Bonds
d. They all have similar voting rights - ANSWER-A
ATI Company has not declared or paid
dividends on its cumulative preferred stock in the
last three years. These dividends should be
reported
a. as a current liability.
b. as a reduction in stockholders' equity.
c. in a note to the financial statements.
d. as a noncurrent liability. - ANSWER-C
Luther Inc., has 4,000 shares of 6%, $50 par value,
,2|Page
cumulative preferred stock and 100,000 shares of $1 par
value common stock outstanding at December 31, 2015,
and December 31, 2014. The board of directors declared
and paid a $10,000 dividend in 2014. In 2015, $48,000 of
dividends are declared and paid. What are the dividends
received by the preferred stockholders in 2015?
a) $34,000
b) $24,000
c) $14,000
d) $12,000 - ANSWER-C
The Surf's Up issues 1,000 shares of 6%, $100 par value
preferred
stock at the beginning of 2017. All remaining shares are
common
stock. The company was not able to pay dividends in 2017, but
plans to pay dividends of $18,000 in 2018. Assuming the
preferred
stock is noncumulative, how much of the $18,000 dividend will
be
paid to preferred stockholders and how much will be paid to
,3|Page
common stockholders in 2018?
a. $6,000 to preferred stockholders and $12,000 to common
stockholders.
b. $18,000 to preferred stockholders and $0 to common
stockholders.
c. $12,000 to preferred stockholders and $6,000 to common
stockholders
d. $9,000 to preferred stockholders and $9,000 to common
stockholders - ANSWER-A, $6 dividend/share x 1,000 shares =
$6,000
Which of the following stock terms is least like the
others?
a. Market value
b. Stated value
c. Par Value
d. Legal Capital - ANSWER-A
Preferred Stock= $60,000
Common Stock= 112,000
, 4|Page
Additional Paid‐in Capital, Preferred =14,000
Additional Paid‐in Capital, Common =36,000
Retained Earnings =80,000
A balance sheet prepared on December 31, 2016, would
report total contributed capital of
a. $172,000
b. $186,000
c. $222,000
d. $302,000 - ANSWER-C
True or False: For accounting purposes, stated value is treated
differently than par value. - ANSWER-False
True or False: The word preferred in the phrase preferred stock
means that an owner of preferred stock has some
advantages over a bondholder - ANSWER-False
Knomark Corporation has 3,000 shares of $200 par value, 7
percent cumulative preferred stock, and 10,000 shares of $20
par value common stock outstanding during its first five years
of operation. Knomark Corporation paid cash dividends as
