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charter oak acc101 week 12 test part 1




Question;1. Which of the;following would be classified as an extraordinary item?;Answer;? Question;2;3.431 out of 3.431 points;2.;An example of a change in accounting principle is;Answer;? Question;3;3.431 out of 3.431 points;3.;Diluted earnings per share is a hypothetical computation to warn;stockholders what could happen if;Answer;? Question;4;3.4318 out of 3.4318 points;4.;A liquidating dividend;Answer;? Question;5;3.431 out of 3.431 points;5.;Leisure Attire Corporation discontinued Princess Fashions, its entire;line of children's clothing, in November of 2001. Prior to the disposal;Princess Fashions generated a loss of $300,000 (net of tax) for the period from;January through the sale date. Because of the value of the real estate and;machinery, there was a gain of $750,000 (net of tax) on the actual sale. How;should this situation be reported in the financial statements of Leisure Attire;for 2001?;Answer;? Question;6;3.431 out of 3.431 points;6.;Chelsea Corporation's financial statements for the current year include;the following;Income from continuing operations $;520,000;Prior period adjustment (increase in prior year net;Income, net of;taxes;90,000;Cash dividents paid to preferred stockholders 102,000;Gain from discontinued operations (net of taxes) 310,000;Cumulative effect of accounting change (reduction;In net income;net of tax benefit);220,000;Extraordinary loss (net of tax benefit) 85,000;On the;basis of this information, net income for the current year is;Answer;? Question;7;3.431 out of 3.431 points;7.;During the year 2002, Starlight Corporation suffered a $500,000 loss;when its factory was destroyed in a flood.;Assuming the corporate income tax rate is 32%, what amount will;Starlight report as an extraordinary loss on its income statement for;2002? Assume floods are not common in;this area.;Answer;? Question;8;0 out of 3.431 points;8.;On January 1, 2002, Huga Corporation had 100,000 shares of $5 par value;common stock outstanding. On March 31;2002, Huga issued an additional 8,000 shares in exchange for a building. What number of shares will be used in the;computation of basic EPS for the year 2002?;Answer;? Question;9;3.431 out of 3.431 points;9. Zanzibar, Inc., had 2,000 shares of $6;preferred stock $100 par, and 30,000 shares of common stock outstanding;throughout 2002. In 2002, Zanzibardeclared a dividend of $6 per share on its;common stock. Compute earnings per share for 2002 if Zanzibar's income;statement showed net income of $240,000.;Answer;? Question;10;3.431 out of 3.431 points;10.;For the current year, Dewing Company reported basic earnings per share;of $8 and fully diluted earnings per share of $3. The difference between these figures is;attributable to outstanding shares of convertible preferred stock. If all this;preferred stock had actually been converted into common stock at the beginning;of the current year, Dewing Company would have reported only one earnings per;share amount, which would have been;Answer


Paper#42587 | Written in 18-Jul-2015

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