from the accoun

3. Treasury stock is unissued shares of a corporation's own stock shares of a corporation's stock which have been issued and subsequently repurchased by the corporation ownership rights in other companies held by the corporation for investment purposes shares of a corporation's stock held by the board of directors a. b. c. d. 4. The following information was extracted from the accounting records of Plum Company: Beginning Paid-In Capital $87,000 Beginning Retained Earnings $211,000 Beginning Assets $455,000 During the period assets increased by $150,000, revenues were $200,000, and expenses were $165,000. The owners made no additional investments. The amount of Plum Company's liabilities at the end of the period is a. $157,000 b. $272,000 c. $150,000 d. S 45,000 5. The following amounts were taken from the financial statements of Palmer Company Total assets Net sales Cost of goods sold Net income Weighted average number of common shares outstanding Market price of common stock $800,000 720,000 368,000 $1,000,000 650,000 320,000 90,000 $35 90,000 S39 a. b. . d. The Gross profit rate for 2010 is 46.0%. 30.5%. 48.8%. 36.0%. 6. The entity's economic obligations to non-owners is (are) called a. owners' equity b. liabilities c. assets d. retained earnings 7. The effects of price changes in marketable securities are reported a. b. c. as a gain or loss on the income statement as an increase or decrease in stockholders' equity either as a gain or loss on the income statement or the balance sheet, depending upon the classification of the securities either as a gain or loss on the income statement, depending upon the number of shares owned d. Page 4 of 7