Question

Question 7 (1 point)

At January 1, the beginning of the year, a company had 10,000 common shares outstanding. On February 19, the company issued 2,000 shares; and on September 9, the company declared and distributed a 10% stock dividend. At the end of the year, how many common shares are outstanding?

Question 7 options:

	12,000
	11,000
	13,000
	13,200

Question 8 (1 point)

A stock dividend is a distribution of

Question 8 options:

	Cash to shareholders
	Corporations own shares to shareholders
	Another company’s shares to shareholders
	Property to shareholders

Question 9 (1 point)

All of the following are non-current liabilities except:

Question 9 options:

	Bonds payable
	Instalment notes payable
	Capital lease liabilities
	All of these options are non-current liabilities

Question 10 (1 point)

The amount that the issuing company must pay at the maturity date of bonds is called:

Question 10 options:

	Face value
	Par value
	Maturity value
	All of the above

Answer 1

7) Common Stock outstanding after Stock dividend = 10000+10000*10% = 11000

So answer is b) 11000

8) A stock dividend is a distribution of

Stock dividend is the dividend in kind of shares of own company for their shareholders

So answer is b) Corporations own shares to shareholders

9) All of the following are non-current liabilities except:

Bonds payable, Capital lease and installment payable all are non current liabilities

So answer is d) All of these options are non-current liabilities

10)

The amount that the issuing company must pay at the maturity date of bonds is called:

So answer is c) Maturity value