Reference no: EM132437767
Questions -
Q1. For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?
a. $3.00
b. $6.00
c. $2.50
d. $5.00
Q2. Glow Co. reacquired 60,000 shares of its common stock at $25 per share. The balance of the treasury stock account is reported on the balance sheet as a(n):
a. reduction of stockholders' equity.
b. increase in current liabilities.
c. reduction of fixed assets.
d. increase in long-term liabilities.
Q3. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued (and sold) and 5,000 were subsequently reacquired. What is the number of shares outstanding?
a. 60,000
b. 55,000
c. 100,000
d. 5,000
Q4. The par value per share of common stock represents:
a. the amount of dividends per share to be received each year.
b. the minimum amount the stockholder will receive when the corporation is liquidated.
c. the minimum selling price of the stock established by the articles of incorporation.
d. an arbitrary monetary amount assigned to each share of stock in the articles of incorporation.