MGMT 200 Chapter 10 Exam Questions and Answers Already Passed Latest Update 2025-
2026
All publicly held corporations are regulated by what government organization?
a. The Financial Accounting Standards Board
b. The Commission on Accounting Procedures
c. The Accounting Principles Board
d. The Securities and Exchange Commission - Answers d. The Securities and Exchange
Commission
A disadvantage of the corporate form of business is
A. centralized authority and responsibility.
B. its status as a separate legal entity.
C. government regulation.
D. continuous existence. - Answers C. government regulation.
When a corporation is formed what document are filed with the state jurisdiction?
a) Articles of incorporation & by‐laws
b) State entity registration form & common stock certificate form
c) Articles of incorporation & common stock certificate form
d) By‐laws & state entity registration form - Answers a) Articles of incorporation & by‐laws
Officers of a company are elected by a vote of the shareholders.
a. true
b. false - Answers b. false
Board of directors appoints the CEO
CEO appoints other corporate officers
Outstanding common stock refers to the total number of shares
a. authorized.
, b. issued plus treasury stock.
c. issued
d. issued less treasury stock. - Answers d. issued less treasury stock.
Which of the following is ordered from the largest number of shares to the smallest number of
shares?
A. Shares issued, shares outstanding, shares authorized.
B. Shares outstanding, shares issued, shares authorized.
C. Shares authorized, shares issued, shares outstanding.
D. Shares in treasury, shares outstanding, shares issued. - Answers C. Shares authorized,
shares issued, shares outstanding.
Treasury shares plus outstanding shares equal
A. unissued shares.
B. available shares.
C. authorized shares.
D. issued shares. - Answers D. issued shares.
Contributed capital is the amount stockholders have invested in the company.
a. true
b. false - Answers a. true (external funds)
The par value of shares issued is normally recorded in the
a. Additional Paid‐in Capital account.
b. Retained Earnings account.
c. Common Stock account.
d. asset account Common Stock. - Answers c. Common Stock account.
Meadows Racetrack, Inc. issues 1,000 shares of $1 par value common stock for $20 per share,
what would be the effect on the accounting equation?
a. Increase assets and increase stockholders' equity
b. Increase assets and increase liabilities
2026
All publicly held corporations are regulated by what government organization?
a. The Financial Accounting Standards Board
b. The Commission on Accounting Procedures
c. The Accounting Principles Board
d. The Securities and Exchange Commission - Answers d. The Securities and Exchange
Commission
A disadvantage of the corporate form of business is
A. centralized authority and responsibility.
B. its status as a separate legal entity.
C. government regulation.
D. continuous existence. - Answers C. government regulation.
When a corporation is formed what document are filed with the state jurisdiction?
a) Articles of incorporation & by‐laws
b) State entity registration form & common stock certificate form
c) Articles of incorporation & common stock certificate form
d) By‐laws & state entity registration form - Answers a) Articles of incorporation & by‐laws
Officers of a company are elected by a vote of the shareholders.
a. true
b. false - Answers b. false
Board of directors appoints the CEO
CEO appoints other corporate officers
Outstanding common stock refers to the total number of shares
a. authorized.
, b. issued plus treasury stock.
c. issued
d. issued less treasury stock. - Answers d. issued less treasury stock.
Which of the following is ordered from the largest number of shares to the smallest number of
shares?
A. Shares issued, shares outstanding, shares authorized.
B. Shares outstanding, shares issued, shares authorized.
C. Shares authorized, shares issued, shares outstanding.
D. Shares in treasury, shares outstanding, shares issued. - Answers C. Shares authorized,
shares issued, shares outstanding.
Treasury shares plus outstanding shares equal
A. unissued shares.
B. available shares.
C. authorized shares.
D. issued shares. - Answers D. issued shares.
Contributed capital is the amount stockholders have invested in the company.
a. true
b. false - Answers a. true (external funds)
The par value of shares issued is normally recorded in the
a. Additional Paid‐in Capital account.
b. Retained Earnings account.
c. Common Stock account.
d. asset account Common Stock. - Answers c. Common Stock account.
Meadows Racetrack, Inc. issues 1,000 shares of $1 par value common stock for $20 per share,
what would be the effect on the accounting equation?
a. Increase assets and increase stockholders' equity
b. Increase assets and increase liabilities
