I need help please so I can make sure I study properly.;1. Total stockholders' equity represents;a. a claim to specific assets contributed by the owners.;b. the maximum amount that can be borrowed by the enterprise.;c. a claim against a portion of the total assets of an enterprise.;d. only the amount of earnings that have been retained in the business.;2. A primary source of stockholders' equity is;a. income retained by the corporation.;b. appropriated retained earnings.;c. contributions by stockholders.;d. both income retained by the corporation and contributions by stockholders.;3. Which of the following is not a legal restriction related to profit distributions by a corporation?;a. The amount distributed to owners must be in compliance with the state laws governing corporations.;b. The amount distributed in any one year can never exceed the net income reported for that year.;c. Profit distributions must be formally approved by the board of directors.;d. Dividends must be in full agreement with the capital stock contracts as to preferences and participation.;4. When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?;a. Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value.;b. Paid-in capital in excess of par for the purchase price.;c. Treasury stock for the purchase price.;d. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value.;5. A feature common to both stock splits and stock dividends is;a. a transfer to earned capital of a corporation.;b. that there is no effect on total stockholders' equity.;c. an increase in total liabilities of a corporation.;d. a reduction in the contributed capital of a corporation.;6. At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the;a. declaration of a stock split.;b. declaration of a stock dividend.;c. purchase of treasury stock.;d. payment in full of subscribed stock.;7. An example of a correction of an error in previously issued financial statements is a change;a. from the FIFO method of inventory valuation to the LIFO method.;b. in the service life of plant assets, based on changes in the economic environment.;c. from the cash basis of accounting to the accrual basis of accounting.;d. in the tax assessment related to a prior period.;Use the following information for questions 18 and 19.;Waeglein Corporation purchased machinery on January 1, 2006 for $630,000. The company used the straight-line method and no salvage value to depreciate the asset for the first two years of its estimated six-year life. In 2008, Waeglein changed to the sum-of-the-years'-digits depreciation method for this asset. The following facts pertain;2006 2007;Straight-line $105,000 $105,000;Sum-of-the-years'-digits $180,000 $150,000;8. Waeglein is subject to a 40% tax rate. The cumulative effect of this accounting change on beginning retained earnings is;a. $135,000.;b. $120,000.;c. $72,000.;d. $0.;9. The amount that Waeglein should report for depreciation expense on its 2008 income statement is;a. $168,000.;b. $105,000.;c. $75,000.;d. none of the above.;10. Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses as other comprehensive income and as a separate component of stockholders' equity are;a. available-for-sale securities where a company has holdings of less than 20%.;b. trading securities where a company has holdings of less than 20%.;c. c securities where a company has holdings of between 20% and 50%.;d. securities where a company has holdings of more than 50%.
Paper#24937 | Written in 18-Jul-2015Price : $27