1
ACCT 2300 Final Exam TTU Questions with Correct
Answers | Updated (100% Correct Answers)
The two main categories of stockholders' equity are Answer: retained earnings
and paid in capital
Which of the following is not considered to be an advantage of a corporation?
Answer: Double taxation
Stockholders of a corporation directly elect the Answer: board of directors
Which of the following is a characteristic of a corporation? Answer: Limited
liability of stockholders
The basic form of capital stock is Answer: a share of common stock
Preferred stock is least likely to have which of the following characteristics?
Answer: Preference as to voting
The par value of a share of common stock Answer: is stated in the charter.
What is the total paid-in capital for Century Company at March 31, 2019?
Answer: Common stock + Paid-in capital= Total paid in capital
68 Million+ 340 Million= 408 Million
If a corporation issues 3,000 shares of $2.40 par value common stock for $27,000,
the journal entry would include a credit to Answer: Number of Shares x Par
Value = Par value of CS
© 2026 All rights reserved
, 2
3,000 shares x $2.40 Par = 7,200 to Common Stock
Best Player, Inc., issued 300,000 shares of no-par common stock for $15 per
share. The journal entry to record the issuance would be Answer: Debit Cash
4,500,000
Credit Common Stock 4,500,00
Which of the following classifications represents the most shares of common
stock? Answer: Authorized shares
What is total paid-in capital for Sportaid? (Assume that treasury stock does not
reduce total paid-in capital.) Answer: Common Stock + Preferred Stock + APIC =
Total Paid in capital
311,000 + 80,000 + 200,000 = 591,000
A company might purchase treasury stock for all of the following reasons except
Answer: management wants to decrease the earnings per share of common
stock.
Sloan Corporation purchased 3,600 shares of its own $0.25 par value common
stock for $120,000. As a result of this transaction, the company's stockholders'
equity Answer: decreased by $120,000.
Goodall Corporation issued 95,000 shares of $1.20 par value common stock.
Later that year, Goodall purchased 8,000 shares of its own common stock. Two
months later, it reissued 2,600 shares. How many shares are issued and
outstanding? Answer: 95,000 issued and 89,600 outstanding
© 2026 All rights reserved
ACCT 2300 Final Exam TTU Questions with Correct
Answers | Updated (100% Correct Answers)
The two main categories of stockholders' equity are Answer: retained earnings
and paid in capital
Which of the following is not considered to be an advantage of a corporation?
Answer: Double taxation
Stockholders of a corporation directly elect the Answer: board of directors
Which of the following is a characteristic of a corporation? Answer: Limited
liability of stockholders
The basic form of capital stock is Answer: a share of common stock
Preferred stock is least likely to have which of the following characteristics?
Answer: Preference as to voting
The par value of a share of common stock Answer: is stated in the charter.
What is the total paid-in capital for Century Company at March 31, 2019?
Answer: Common stock + Paid-in capital= Total paid in capital
68 Million+ 340 Million= 408 Million
If a corporation issues 3,000 shares of $2.40 par value common stock for $27,000,
the journal entry would include a credit to Answer: Number of Shares x Par
Value = Par value of CS
© 2026 All rights reserved
, 2
3,000 shares x $2.40 Par = 7,200 to Common Stock
Best Player, Inc., issued 300,000 shares of no-par common stock for $15 per
share. The journal entry to record the issuance would be Answer: Debit Cash
4,500,000
Credit Common Stock 4,500,00
Which of the following classifications represents the most shares of common
stock? Answer: Authorized shares
What is total paid-in capital for Sportaid? (Assume that treasury stock does not
reduce total paid-in capital.) Answer: Common Stock + Preferred Stock + APIC =
Total Paid in capital
311,000 + 80,000 + 200,000 = 591,000
A company might purchase treasury stock for all of the following reasons except
Answer: management wants to decrease the earnings per share of common
stock.
Sloan Corporation purchased 3,600 shares of its own $0.25 par value common
stock for $120,000. As a result of this transaction, the company's stockholders'
equity Answer: decreased by $120,000.
Goodall Corporation issued 95,000 shares of $1.20 par value common stock.
Later that year, Goodall purchased 8,000 shares of its own common stock. Two
months later, it reissued 2,600 shares. How many shares are issued and
outstanding? Answer: 95,000 issued and 89,600 outstanding
© 2026 All rights reserved
