Mod.4 FIN Mastery Exercise

Category: Mastery Exercises

Period: SPRING17-C-8

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Questions 1-10 of 10 | Page 1 of 1

multiple_choice402145816Question 1 (1 point)

Which of the following accounts would not be classified as an intangible?

a	franchises
b	research and development
c	patent
d	trademarks
e	goodwill

multiple_choice402145804Question 2 (1 point)

Which of the following is not a common characteristic of preferred stock?

a	voting rights
b	preference as to dividends
c	preference in liquidation
d	callability by the corporation
e	none of the answers are correct

true_false402145986Question 3 (1 point)

The assets for the balance sheet must equal the liabilities and stockholders' equity.

True

False

multiple_choice402145862Question 4 (1 point)

Which of the following will be disclosed in the reconciliation of retained earnings?

a	adjustment for an error of a prior period
b	net income
c	net loss
d	dividends
e	all of the answers are correct

multiple_choice402145802Question 5 (1 point)

Treasury stock is best classified as:

a	a current asset
b	a long-term investment
c	a contra liability
d	a reduction of stockholders' equity
e	a reduction of retained earnings

true_false402146090Question 6 (1 point)

The accountant records only the events that affect the financial position of the entity and that can be reasonably determined in monetary terms.

True

False

true_false402145890Question 7 (1 point)

Earnings per share is the earnings per share of outstanding common stock.

True

False

multiple_choice402145950Question 8 (1 point)

If liabilities total $70,000 and stockholders' equity totals $50,000, then total assets must be:

a	$20,000
b	$80,000
c	$120,000
d	$30,000
e	$30,000

multiple_choice402145852Question 9 (1 point)

If Investor Company owns 20% of the stock of Investee Company and Investee Company reports profits of $100,000, then Investor Company reports equity income of:

a	$80,000
b	$20,000
c	$40,000
d	$60,000
e	none of the answers are correct

true_false402145896Question 10 (1 point)

A stock split merely increases the number of shares of stock; it usually does not change retained earnings or paid-in capital.

True

False