Louisiana State University, Shreveport ACCT 701 Module 6 Quiz TRUE/FALSE QUESTIONS 1)Stock “Par Value” is an arbitrary amount assigned to each share of a given class of stock and printed on the stock certificate? 2

3. “Capital Stock Outstanding” is the number of authorized shares that have been issued and are still currently held by stockholders. Excludes any treasury stock.
4. Assuming a company has not issued any preferred shares, the return on average common

shareholders’ equity equals net income available to common stockholders divided by the average common stockholder’s equity?

5. Paid in Capital is presented in the stockholders equity section of the balance sheet. Each source of paid in capital is listed separately?
6. Extraordinary items are both usual and interesting in nature. Extraordinary items appear on the income statement (net of tax effect) as part of “Income from Continuing Operations”?
7. Income available to common stockholders is net income plus any dividends on preferred

stock?

8. The retained earnings balance of a corporation is part of its paid in capital?
9. The purchase of treasury stock does not affect stockholders equity?