Louisiana State University, Shreveport

ACCT 701

CHAPTER 12

1)(T / F) Stock "Par value" is an arbitrary amount assigned to each share of a given class of stock and printed on the stock certificate.

2.  (T / F) "Capital stock authorized" is the maximum number of shares of stock that a corporation can issue as designated in its charter.
3.  (T / F) "Capital stock issued" is the number of shares of stock that have been sold and issued to stockholders. Capital stock issued includes any Treasury Stock.
4.  (T / F) "Capital stock outstanding" is the number of authorized shares of stock that have been issued and that are still currently held by stockholders. Capital stock outstanding excludes any Treasury Stock.
5.  (T / F) Assuming a company has not issued any preferred shares, the return on average common stockholders' equity equals net income available to common stockholders divided by average common stockholders' equity.
6.  (T / F) Paid-in capital is presented in the stockholders' equity section of the balance sheet. Each source of paid-in capital is listed separately.