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 Cash dividends declared Cash dividends paid Stock dividends distributed All of the above 3 Which of the following is necessary when recording the redemption of bonds Record the gain or loss on redemption 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 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 Income tax savings result Earnings per share and return on equity may be higher The interest on the debt must be paid 6 All of the following are non current liabilities except Bonds payable Instalment notes payable 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 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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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

Which of the following will decrease retained earnings?

	Cash dividends declared
	Cash dividends paid
	Stock dividends distributed
	All of the above

Which of the following is necessary when recording the redemption of bonds?

	Record the gain or loss on redemption
	Record the cash paid
	Eliminate the amortized cost of the bonds
	All of the above

Which of the following statements pertaining to instalment notes with blended principal and interest payments is correct?

	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

Which of the following is a disadvantage of using debt financing compared to equity financing?

	Shareholder control is not affected
	Income tax savings result
	Earnings per share and return on equity may be higher
	The interest on the debt must be paid

All of the following are non-current liabilities except:

	Bonds payable
	Instalment notes payable
	Capital lease liabilities
	All of these options are non-current liabilities

Which of the following best represents the guidance provided by ASPE when accounting for shares issued for non-cash consideration?

	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