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Accounting for Non-Accountants Quiz 6

1. A corporation has been defined as “an artificial being” independent from its owners, legally a separate entity.

True
False

 

2. A corporation is not given the right to operate (a charter) from the state in which it incorporates.

True
False

 

3. Which of these is a term used to refer to both the common and preferred stock of a corporation, which the company is initially authorized to issue when it receives its incorporation charter?

Cash Dividend
Capital Stock
Common Stock
Treasury Stock

 

4. Which of these are dividends declared by the board of directors and paid in cash to stockholders?

Stock Dividends
Treasury Dividends
Preferred Stock Dividends
Cash Dividends

 

5. Which of these are dividends declared by the board of directors and issued to the stockholders in the form of additional shares of stock rather than cash?

Stock Dividends
Treasury Dividends
Preferred Stock Dividends
Cash Dividends



Answers

Use the answers below to figure out your score, and see how well you understand the material of the first chapter. If you scored less than an 80% you should read over the chapter again before moving on.

Question 1: True
Question 2: False
Question 3: Capital Stock
Question 4: Cash Dividends
Question 5: Stock Dividends

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