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1. The date on which a liability is recorded for a dividend payment is the:

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1. The date on which a liability is recorded for a dividend payment is the;a. Date of declaration;b. Date of record;c. Ex-dividend date;d. Date of payment;e. Date of distribution;2. Which of the following types of stock may a corporation sell to the public?;a. Treasury;b. Preferred;c. Common;d. Both a and b;e. All of the above;3. Rufus Corporation manufactures and sells bicycles. During the year, Rufus sold bicycles to customers and collected $8,000,000 in cash. What type of classification is this transaction?;a. Operating activities;b. Investing activities;c. Financing activities;d. Significant non-cash transaction;e. None of the above;4. Rufus Corporation manufactures and sells bicycles. During the year, Rufus sold $500,000 worth of its $1 par value common stock to the public. What type of classification is this transaction?;a. Operating activities;b. Investing activities;c. Financing activities;d. Significant non-cash transaction;e. None of the above;5. Finlay Company reported net income of $925,000 last year. Included in that figure is a loss on the sale of equipment of $21,000 and depreciation expense of $32,000. In addition, accounts payable increased by $29,000 during the year. What amount of cash did this company generate from its operating activities?;a. $943,000;b. $965,000;c. $1,007,000;d. $949,000;e. $907,000;6. Each share of common stock is printed with the minimum amount an owner must leave in the business known as its;a. Fair value;b. Par value;c. Current value;d. Market value;e. Historical value;7. Which of the following is not true concerning treasury stock?;a. Holding treasury stock causes a company's number of shares issued and number of shares outstanding to be different.;b. Dividends are not paid on treasury stock.;c. Treasury stock is a reduction to stockholders' equity.;d. A company might repurchase its own stock to lower its stock price.;e. Treasury stock is recorded at the cost of the stock on the date it was repurchased.;8. Olsen Company sells paper products to restaurants and stores across the country. Recently Olsen purchased a new machine for $100,000 by paying cash of $20,000 and signing a note payable for the remainder. How is this transaction reported on the statement of cash flows?;a. Financing activity ? outflow of $100,000;b. Financing activity ? outflow of $20,000;c. Operating activity ? inflow of $20,000;d. Investing activity ? outflow of $100,000;e. Investing activity ? outflow of $20,000;9. A company has 200,000 shares of authorized common stock and 40,000 shares outstanding on January 1, Year One. The company issues 10,000 more shares of common stock on April 1 and another 25,000 shares on July 1 for a total of 75,000. The company had net income for Year One of $600,000. What was its earnings per share?;a. $8;b. $10;c. $12;d. $13;e. $7;10. Goins Company began the year with a notes payable balance of $29,000. During the year, Goins borrowed an additional $10,000 and repaid $3,000 of the original amount. It also paid interest of $2,000. Which of the following correctly reports the inflows and outflows from financing activities relating to notes payable?;a. Inflows: $10,000, Outflows: $3,000;b. Inflows: $12,000, Outflows: $3,000;c. Inflows: $10,000, Outflows: $5,000;d. Inflows: $12,000, Outflows: $5,000;e. Inflows: $10,000, Outflows: $2,000;11. Which of the following is a disadvantage of incorporation?;a. A corporation cannot sell capital stock to raise money.;b. The income of a corporation can be double taxed.;c. Owners of corporations are liable for the business' debts.;d. Corporations cease to exist when an owner passes away.;e. An owner must file for incorporation in every state in which it wishes to operate.;12. Lira Company has an income statement that shows cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. Which of the following is the cash paid for salaries?;a. $93,000;b. $87,000;c. $86,000;d. $90,000;e. $92,000;13. The number of shares which a company may sell over its life is its;a. Authorized shares;b. Treasury shares;c. Common shares;d. Outstanding shares;e. Issued shares;14. Merlin Corporation reported revenue of $95,000 for 20X9. Accounts receivable on 1/1/X9 were $20,000 and accounts receivable on 12/31/X9 were $14,000. Which of the following would be the amount of cash Merlin collected from customers during 20X9?;a. $89,000;b. $95,000;c. $115,000;d. $81,000;e. $101,000;15. The income of Minion Corporation is taxed at a 40% rate. Dividends are taxed at a rate of 15%. During 20X7, Minion earned income of $100,000 and paid taxes on it. It distributed the remainder in its entirety to its owner. Once the owner has paid tax on the dividend, how much money remains?;a. $40,000;b. $6,000;c. $9,000;d. $34,000;e. $51,000

 

Paper#76616 | Written in 18-Jul-2015

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