19. Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services necessary to effect the sale of shares. The costs reduce the net cash proceeds from selling the shares and thus paid-in capital—excess of par, and are:

Multiple Choice

Not recorded separately.

Recorded as an asset.

Amortized over time.

Recorded as a liability.

20 Corporations are formed in accordance with:

Multiple Choice

The Model Business Corporation Act.

The laws of individual states.

Federal statutes.

Federal trade commission regulations.

21. A simple capital structure might include:

Multiple Choice

Nonconvertible preferred stock.

Stock purchase warrants.

Convertible bonds.

Stock rights.

24. When treasury shares are resold at a price below cost:

Multiple Choice

A loss is reported on the income statement

Paid-in capital and/or retained earnings is reduced.

Paid-in capital and/or retained earnings is increased.

Retained earnings is always reduced.

29. Two of the three primary account classifications within shareholders' equity are:

Multiple Choice

Preferred stock and retained earnings.

Paid-in capital and retained earnings.

Preferred and common stock.

The par of common stock and retained earnings.

30. Under IFRS, components of other comprehensive income:

Multiple Choice

Can be reported as part of a single statement of comprehensive income.

Can be reported as part of a statement of shareholders' equity.

Must be reported in a separate statement of comprehensive income.

Are not permitted to be reported.

33. When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?

Multiple Choice

Increase.

Decrease.

No effect.

Cannot tell from the given information.

36. When stock is issued in exchange for property, the best evidence of fair value might be any of the following except:

Multiple Choice

The price of the stock quoted on the stock exchange.

The appraised value of the property received.

The average book value of outstanding stock.

The selling price of the stock in a recent transaction.

37. Under IFRS, a deferred tax asset for stock options:

Multiple Choice

Isn't created if the award is "in the money;" that is, it has intrinsic value.

Is the portion of the options' intrinsic value earned to date times the tax rate.

Is the tax rate times the amount of compensation.

Is created for the cumulative amount of the fair value of the options the company has recorded for compensation expense.

40. Details of each class of stock must be reported:

Multiple Choice

On the face of the balance sheet and in disclosure notes.

On the face of the balance sheet or in disclosure notes.

In disclosure notes only.

On the face of the balance sheet only.