Reference no: EM132933291

Problem 1: Retained earnings not paid out to shareholders in the form of dividends are:

Select one:

a. Re-invested in the company

b. Sold on the secondary market

c. Confiscated by the government

d. Paid as executive bonuses

Problem 2: When a public corporation offers its shares to a supplier in exchange for a machine, which of the following dollar amount should be used to record the transaction, assuming that all of the following amounts are readily determinable?

Select one:

a. The price that the supplier originally paid for the machine

b. The fair value of the machine on the date of the exchange

c. The product of the number of shares issued and their par value

d. The fair value of the shares traded on the stock market on the date of the exchange

Problem 3: The two categories of shares are:

Select one:

a. Common and uncommon

b. Common and retained

c. Common and preferred

d. Debt and equity