ACCT 2300 Final Exam TTU Questions with Correct Answers Latest Update 2025/2026
The two main categories of stockholders' equity are - Answers retained earnings and paid in
capital
Which of the following is not considered to be an advantage of a corporation? - Answers Double
taxation
Stockholders of a corporation directly elect the - Answers board of directors
Which of the following is a characteristic of a corporation? - Answers Limited liability of
stockholders
The basic form of capital stock is - Answers a share of common stock
Preferred stock is least likely to have which of the following characteristics? - Answers
Preference as to voting
The par value of a share of common stock - Answers is stated in the charter.
What is the total paid-in capital for Century Company at March 31, 2019? - Answers 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 - Answers Number of Shares x Par Value = Par value of CS
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 - Answers Debit Cash 4,500,000
Credit Common Stock 4,500,00
Which of the following classifications represents the most shares of common stock? - Answers
Authorized shares
What is total paid-in capital for Sportaid? (Assume that treasury stock does not reduce total
paid-in capital.) - Answers 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 - Answers
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 - Answers
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? - Answers 95,000 issued and 89,600
outstanding
Cat Tail Corporation paid $26 per share to purchase 400 shares of its common stock as
treasury stock. The stock was originally issued at $13 per share. Which of the following would
be the journal entry that Cat Tail would make to record the purchase of the treasury stock? -
Answers Debit Treasury 10,400
Credit Cash 10,400
When treasury stock is sold for less than its cost, the entry should include a debit to - Answers
Gain on Sale of Treasury Stock.
How does the declaration of a cash dividend affect a company's assets, liabilities, and equity? -
Answers It results in an increase to liabilities and a decrease to stockholders' equity, while
assets remain the same
For cash dividends, the journal entry on the date of record - Answers No journal entry is required
on the date of record.
A stock split - Answers has no effect on total stockholders' equity.
Stockholders are eligible for a dividend if they own the stock on the date of - Answers record
Anna's Foods has outstanding 500 shares of 99% preferred stock, $100 par value; and 1,600
shares of common stock, $10 par value. Anna's declares dividends of $16,900. Which of the
following is the correct entry? - Answers Debit Retained Earnings 16,900
Credit Common Stock- Preferred 4,500
Credit Common Stock- Common 12,400
A corporation has 25,000 shares of 16% preferred stock outstanding. Also, there are 25 comma
25,000 shares of common stock outstanding. Par value for each is $100. If a $650,000 dividend
The two main categories of stockholders' equity are - Answers retained earnings and paid in
capital
Which of the following is not considered to be an advantage of a corporation? - Answers Double
taxation
Stockholders of a corporation directly elect the - Answers board of directors
Which of the following is a characteristic of a corporation? - Answers Limited liability of
stockholders
The basic form of capital stock is - Answers a share of common stock
Preferred stock is least likely to have which of the following characteristics? - Answers
Preference as to voting
The par value of a share of common stock - Answers is stated in the charter.
What is the total paid-in capital for Century Company at March 31, 2019? - Answers 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 - Answers Number of Shares x Par Value = Par value of CS
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 - Answers Debit Cash 4,500,000
Credit Common Stock 4,500,00
Which of the following classifications represents the most shares of common stock? - Answers
Authorized shares
What is total paid-in capital for Sportaid? (Assume that treasury stock does not reduce total
paid-in capital.) - Answers 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 - Answers
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 - Answers
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? - Answers 95,000 issued and 89,600
outstanding
Cat Tail Corporation paid $26 per share to purchase 400 shares of its common stock as
treasury stock. The stock was originally issued at $13 per share. Which of the following would
be the journal entry that Cat Tail would make to record the purchase of the treasury stock? -
Answers Debit Treasury 10,400
Credit Cash 10,400
When treasury stock is sold for less than its cost, the entry should include a debit to - Answers
Gain on Sale of Treasury Stock.
How does the declaration of a cash dividend affect a company's assets, liabilities, and equity? -
Answers It results in an increase to liabilities and a decrease to stockholders' equity, while
assets remain the same
For cash dividends, the journal entry on the date of record - Answers No journal entry is required
on the date of record.
A stock split - Answers has no effect on total stockholders' equity.
Stockholders are eligible for a dividend if they own the stock on the date of - Answers record
Anna's Foods has outstanding 500 shares of 99% preferred stock, $100 par value; and 1,600
shares of common stock, $10 par value. Anna's declares dividends of $16,900. Which of the
following is the correct entry? - Answers Debit Retained Earnings 16,900
Credit Common Stock- Preferred 4,500
Credit Common Stock- Common 12,400
A corporation has 25,000 shares of 16% preferred stock outstanding. Also, there are 25 comma
25,000 shares of common stock outstanding. Par value for each is $100. If a $650,000 dividend
