Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Select the ONE BEST answer to each of the following multiple choice questions (3 points each): 1) A company's change in total stockholders' equity from

image text in transcribed
Select the ONE BEST answer to each of the following multiple choice questions (3 points each): 1) A company's change in total stockholders' equity from all sources other than owners investments is known as: a) Net income b) Comprehensive income c) Additional paid-in capital d) Earnings per share The two main sources of stockholders' equity are: a) Assets and equity b) Preferred and common stock c) Retained earnings and dividends d) Contributed capital and retained earnings 2) 3) ABC Company is subject to a 35% tax rate and has a December 31 year-end. During 2017, the accountant discovered an error made in 2016 relating to a capital expenditure that should have been recorded as Equipment but instead was expensed. The total pre-tax amount of the error was $67,500. How should this error be corrected? a) The accountant should increase Equipment for $67,500 and decrease Repairs & Maintenance Expense for $67,500 on the 2017 financial statements. The accountant should report a prior period adjustment of $67,500 to beginning retained earnings The accountant should increase Equ b) s on the 2017 Statement of Stockholders' Equity c) ense for 67,500; and increase Income tax expense for $23,625 on the 2017 financial ipment for $43,875; decrease Repair & Maintenance statements. the accountant should report a prior period adjustment of $43,875 to beginning retained earnings on the 2017 Statement of Stockholders' Equity The assets on the balance sheet are list a) In alphabetical order b) In order of liquidity c) In financial order d) In order of their function ed: 4) would appear on both the Balance Sheet and the Statement of Changes in Stockholders' Equity? a) Net Income b) Prior Period Adjustment c) Additional Paid-in Capital d) Common Stock Dividends Declared 5)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin A. Arens . Randal J. Elder . Mark S. Beasley

18th Global Edition

1292448989, 978-1292448985

More Books

Students also viewed these Accounting questions