1. When the bonus shares were distributed, which of the following items was wrong to the accounts of Yummy Restaurant

(a) The company's cash remains unchanged

(b) The company's shareholder equity remains unchanged

(c) The company's share capital remains unchanged

(d) The company's assets remain unchanged

2. Ann Company and the tax bureau appealed against the tax payment of $1,000,000 on offshore royalty income. The tax payment has been suspended and there is no need to pay it temporarily. The lawsuit will not have any results at the end of the year. The relevant amount should be used as

(a) Since the litigation is still being processed and there is no result, it does not need to be processed

(b) Long-term Liability

(c) Current Liability

(d) Contingent Liability

3. Ann Company's earnings per share are $100, and the stock price is $400. Ann Company's P/E ratio is

(a) 25%

(b) 0.25 times

(c) 400%

(d) 4 times

4. Ann Ltd. issued a bond worth $6,000,000 on August 1, 2020, with an interest of 10%, and dividends on March 31 and September 30 each year. The annual end of Ann Ltd. is on December 31 of each year. How to be credited on December 31, 2020

(a) Since the dividend payment date is March 31, 2021, no entry is required

(b) Bond interest $250,000

(c) Bond interest $300,000

(d) Bond interest $600,000

5. If Ann Companys gross profit margin is 20%, then the mark-up will be

(a) Insufficient information to calculate

(b) 16.67%

(c) 20%

(d) 25%

6. Anns accountant found the following error

The rent was over $120,000

Cash undercounted $200,000

Interest income should be $81,000, wrongly credited as $18,000

Closing inventory overcounted the period by $300,000

Anns net profit will:

(a) Undercounted $83,000

(b) Overcharged $83,000

(c) Overcharged $117,000

(d) Undercounted $117,000