1. In which section of the balance sheet would treasury stock be reported? (Points : 2)

Fixed assets Long-term liabilities Stockholders' equity Intangible assets

2. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding? (Points : 2)

5,000 100,000 60,000 55,000

3. Payroll taxes levied against employees become liabilities (Points : 2)

the first of the following month. at the time the liability for the employee's wages is paid. when earned by the employee. at the end of an accounting period.

4. What options does a business have when financing operations? (Points : 2)

Debt financing Equity financing Asset financing Both debt financing and equity financing

5. The liability for a dividend is recorded on which of the following dates? (Points : 2)

The date of record The date of payment The date of announcement The date of declaration

6. The primary purpose of a stock split is to (Points : 2)

increase paid-in capital. reduce the market price of the stock per share. increase the market price of the stock per share. increase retained earnings.

7. Current liabilities are (Points : 2)

due but not receivable for more than one year. due but not payable for more than one year. due and receivable within one year. due and payable within one year.

8. Where is interest expense listed on the income statement? (Points : 2)

Other expense section Cost of merchandise sold Operating expenses Interest expense is on the balance sheet, not the income statement.

9. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding? (Points : 2)

5,000 35,000 45,000 55,000

10. An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee? (Points : 2)

$798.85 $873.77 $953.16 $1,223.77