Question
1. As of January 1, the beginning of the fiscal year, a company has 10,000 shares outstanding. The company issues 5,000 shares on April 1,
1. As of January 1, the beginning of the fiscal year, a company has 10,000 shares outstanding. The company issues 5,000 shares on April 1, and reacquires 3,000 shares on September 1. What is the weighted average number of shares outstanding for the year?
|
| 12,750 |
|
| 12,333 |
|
| 6,000 |
|
| 18,000 |
2.
Which of the following will decrease retained earnings?
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| Cash dividends declared |
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| Cash dividends paid |
|
| Stock dividends distributed |
|
| All of the above |
3.
Which of the following is necessary when recording the redemption of bonds?
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| Record the gain or loss on redemption |
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| Record the cash paid |
|
| Eliminate the amortized cost of the bonds |
|
| All of the above |
4.
Which of the following statements pertaining to instalment notes with blended principal and interest payments is correct?
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| The portion of each instalment applied to the interest and principal will remain constant |
|
| The portion of the instalment applied to the principal will increase, while the portion applied to the interest will decrease over time |
|
| The portion of the instalment applied to the principal will decrease, while the portion applied to the interest will increase over time |
|
| The portion of the instalment applied to the interest will depend on the prevailing market interest rates, with the difference being applied to the principal |
5.
Which of the following is a disadvantage of using debt financing compared to equity financing?
|
| Shareholder control is not affected |
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| Income tax savings result |
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| Earnings per share and return on equity may be higher |
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| The interest on the debt must be paid |
6.
All of the following are non-current liabilities except:
|
| Bonds payable |
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| Instalment notes payable |
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| Capital lease liabilities |
|
| All of these options are non-current liabilities |
7.
Which of the following best represents the guidance provided by ASPE when accounting for shares issued for non-cash consideration?
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| The transaction should be valued at the more reliably measurable amount of the fair value of the goods/services received or the fair value of the shares given up |
|
| The transaction should be valued at the fair value of the shares given up |
|
| The transaction should be valued at the fair value of the goods/services received |
|
| The transaction can be valued at managements choice of either the fair value of the goods/services received or the fair value of the shares given up |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428704
