23) The computation of equivalent units is generally not necessary when:

a.Beginning work-in-process inventories are significantly larger than ending work-in-process inventories.

b.Beginning and ending work in process inventories differ only slightly.

c.The number of units in ending work-in-process exceeds the number of units completed and transferred to finished goods during the period.

d.Per-unit costs become distorted as a result of not computing equivalent units of production.

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3) Seville Corporation has net assets of $2,072,000 and paid-in capital of $700,000. The only stock issue consists of 74,000 outstanding shares of common stock. From this information, it can be deduced that the company has:

a. Retained earnings of $2,072,000.

b. A deficit of $2,072,000.

c. A book value of $9.46 per share of common stock.

d. A book value of $28 per share of common stock.

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4) The statement of stockholders equity:

a. Is a required financial statement.

b. May be issued as a substitute for the statement of retained earnings.

c. Shows the changes during the year in all stockholders' equity accounts except retained earnings.

d. Is a statement sent to each stockholder showing that person's return on equity.

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5) Which of the following apply to closely held corporations?

a. There is no organized market for buying and selling the company's shares.

b. The company must prepare and issue its financial statements in conformity with generally accepted accounting principles.

c. The company must have its financial statements audited by an independent firm of CPAs.

d. The company's financial information must be submitted to the Securities and Exchange Commission.

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6) A cash dividend paid to shareholders is reported on the:

a. Financing activities section of the statement of cash flows.

b. Balance sheet.

c. Income statement.

d. Operating activities section of the statement of cash flows.