ACC 304 All Assignments ACC 304 All Assignments | Page 40

28. Stockholders' equity is generally classified into two major
categories:
a. contributed capital and appropriated capital.
b. appropriated capital and retained earnings.
c. retained earnings and unappropriated capital.
d. earned capital and contributed capital.
29. The accounting problem in a lump sum issuance is the allocation
of proceeds between the classes of securities. An acceptable method of
allocation is the
a. pro forma method.
b. proportional method.
c. incremental method.