Question text

If 20,000 shares are authorized, 15,000 shares are issued, and 500 shares are held as treasury stock, a cash dividend of $1 per share would amount to $14,500.

Select one:

True

False. (Note sure)

Question 4

Question text

A corporation has 10,000 shares of $25 par value stock outstanding that has a current market value of $100. If the corporation issues a 5-for-1 stock split, the market value of the stock will fall to approximately $20.

Select one:

True

False*

Question 5

Question text

If paid-in capital in excess of par--preferred stock is $80,000, preferred stock is $500,000, paid-in capital in excess of par--common stock is $50,000, common stock is $1,000,000, and retained earnings is $230,000, the total stockholders' equity is $1,860,000.

Select one:

True

False

Question 6

Question text

On June 5 Apex Co. issued a $60,000, 8%, 120-day note payable to Jones Co. How much will Jones Co. have to pay at maturity?

Select one:

$60,160

$58,400

$61,600

$59,840

Question 7

Question text

A company sold 200 shares of common stock with a par vale of $5 at a price of $12 per share. Which section of the Statement of Cash Flows will contain this transaction?

Select one:

Operating activities

Investing activities

Financing activities

Sale of stock will not appear on the Statement of Cash Flows

Question 8

Not yet answered

Allen Company acquired a building valued at $155,000 for property tax purposes in exchange for 10,000 shares of its $10 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Allen Company?

Select one:

$100,000

$150,000

$155,000

$250,000

Question 9

Question text

How are contingent liabilities that are NOT required to be disclosed on the balance sheet but are possible recorded?

Select one:

These liabilities are listed on the income statement.

These liabilities are disclosed in the notes to the financial statements.

These liabilities are not required to be disclosed.

All contingent liabilities are required to be on the balance sheet.*

Question 10

Question text

For the year that just ended, a company reports net income of $1,250,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?

Select one:

$5.00

$2.50

$4.17

$4.81

Question 11

Question text

On June 5 Apex Co. issued a $60,000, 8%, 120-day note payable to Jones Co. How much will Jones Co. have to pay at maturity?

Select one:

$60,160

$58,400

$61,600*

$59,840

Question 12

Question text

When are contingent liabilities required to be recorded?

Select one:

When the liability is probable.

When the amount is reasonable estimable.

When the liability becomes legally enforceable.

Both (a) and (b) must occur before the contingent liability is recorded.*

Question 13

Question text

Most employers are required to withhold from employees which of the following employment taxes?

Select one:

only FICA tax*

FICA tax, state and federal unemployment compensation tax

only state unemployment compensation tax

only federal unemployment compensation tax