When stock is issued for legal services, the transaction is recorded by debiting Organization Expense for the

book value of the stock.

stated value of the stock.

par value of the stock.

market value of the stock.

A company would notacquire treasury stock

in order to increase trading of the company’s stock.

in order to reissue shares to officers.

to have additional shares available to use in acquisitions of other companies.

as an asset investment.

A corporate board of directors does notgenerally

declare dividends.

select officers.

formulate operating policies.

execute policy.

Treasury Stock is a(n)

retained earnings account.

contra asset account.

contra stockholders equity account.

asset account.

Which one of the following events would not require a formal journal entry on a corporation’s books?

$1 per share cash dividend

2 for 1 stock split

100% stock dividend

2% stock dividend

The board of directors must assign a per share value to a stock dividend declared that is

less than the par or stated value.

at least equal to the par or stated value.

equal to the par or stated value.

greater than the par or stated value.

Which of the following is an incorrectstatement about a corporation?

A corporation is subject to numerous state and federal regulations.

A corporation is an entity separate and distinct from its owners.

Creditors ordinarily have recourse only to corporate assets in satisfaction of their claims.

A corporation may be formed in writing, orally, or implied.