Recent Question

Harbor Company reported net income 1. If a gain of $15,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a. $95,000. b. $115,000. c. $100,000. d. $15,000. 2. If a loss of $20,000 is incurred in selling (for cash) office equipment having a book value of $80,000, the total amount repor ...

Other / Other 05 Apr 2016

Taxable entity resulting in additional taxes 1 Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization. A = Advantage D = Disadvantage N = Not Applicable Characteristics _____ 1. Separate legal entity _____ 2. Taxable entity resulting in additional taxes _____ 3. Continuous life _____ 4. Unlimited liability of owners ____ ...

Other / Other 05 Apr 2016

Book value per share is usually 1. Additional paid-in capital includes all of the following except a. paid-in capital from treasury stock. b. paid-in capital in excess of par. c. paid-in capital in excess of stated value. d. paid-in capital in excess of book value. 2. Book value per share is computed by dividing total a. paid-in capital by the number of common shares outstanding. b. paid-in capital by the number of common shares is ...

Other / Other 05 Apr 2016

Each of the following is correct regarding treasury stock 1. Beckham Company has 1,000 shares of 4%, $100 par cumulative preferred stock outstanding at December 31, 2008. No dividends have been paid on this stock for 2007 or 2008. Dividends in arrears at December 31, 2008 total a. $0. b. $400. c. $4,000. d. $8,000. 2. Ephram Company has 2,000 shares of 5%, $100 par non-cumulative preferred stock outstanding at December 31, 2008. N ...

Other / Other 05 Apr 2016

Preferred stockholders have a priority over common stockholders 1. When the selling price of treasury stock is greater than its cost, the company credits the difference to a. Gain on Sale of Treasury Stock. b. Paid-in Capital from Treasury Stock. c. Paid-in Capital in Excess of Par Value. d. Treasury Stock. 2. Roberson Corporation was organized on January 1, 2008, with authorized capital of 750,000 shares of $10 par value common st ...

Other / Other 05 Apr 2016

The trial balance of Hackman Inc. includes 1. Burgess Corporation began business by issuing 100,000 shares of $5 par value common stock for $24 per share. During its first year, the corporation sustained a net loss of $20,000. The year-end balance sheet would show a. Common stock of $500,000. b. Common stock of $2,400,000. c. Total paid-in capital of $2,380,000. d. Total paid-in capital of $1,900,000. Use the following informatio ...

Other / Other 05 Apr 2016

Additional paid-in capital includes all of the following except 1. Additional paid-in capital includes all of the following except the amounts paid in a. over par value. b. over stated value. c. from treasury stock. d. for the par value of common stock. 2. In the stockholders' equity section of the balance sheet, the classification of capital stock consists of a. additional paid-in capital and common stock. b. common stock and tre ...

Other / Other 05 Apr 2016

Dividends in arrears on cumulative preferred stock 1. Which of the following is not a right or preference associated with preferred stock? a. The right to vote b. First claim to dividends c. Preference to corporate assets in case of liquidation d. To receive dividends in arrears before common stockholders receive dividends Use the following information for questions 2 and 3. Cole Corporation issues 15,000 shares of $50 par value pre ...

Other / Other 05 Apr 2016

Paid-In Capital in Excess of Stated Value 1. If stock is issued for less than par value, the account a. Paid-In Capital in Excess of Par Value is credited. b. Paid-In Capital in Excess of Par Value is debited if a debit balance exists in the account. c. Paid-In Capital in Excess of Par Value is debited if a credit balance exists in the account. d. Retained Earnings is credited. 2. The sale of common stock below par a. is a common ...

Other / Other 05 Apr 2016

Treasury stock should be reported in the financial statements 1. Treasury stock is a. stock issued by the U.S. Treasury Department. b. stock purchased by a corporation and held as an investment in its treasury. c. corporate stock issued by the treasurer of a company. d. a corporation's own stock which has been reacquired but not canceled. 2. The acquisition of treasury stock by a corporation a. increases its total assets and total st ...

Other / Other 05 Apr 2016