Question
The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property
The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property dividend. Journal entries were made to adjust the property to market value and declare the dividend. Indicate the combined effect on the Net Income and Total Assets, respectively:
Select one: a. Decrease, Decrease b. No Effect, Decrease c. No Effect, Increase d. Decrease, Increase e. Increase, Decrease
Fuller Food Company distributes coupons which may be presented (on or before a stated expiration date) to grocers. The grocers are reimbursed when they send the coupons to Fuller. In Fuller's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date Fuller receives it. During 2012 Fuller issued two separate series of coupons as follows: The December 31, 2012 balance sheet should indicate a liability for unredeemed coupons of:
Select one: a. $0 b. $60,000 c. $124,000 d. $360,000 e. $684,000
Treasury Stock is acquired for an amount above the original issue price. What effect will the acquisition of treasury stock have on Shares Issued and Retained Earnings, respectively?
Select one: a. Decrease and no effect b. Increase and no effect c. Decrease and increase d. Increase and decrease e. No effect and no effect
A company grants its executives stock options as a form of compensation.
The amount used to determine the effect on net income during the service period is the:
Select one: a. Option Price b. Fair Value c. Par Value d. Book Value
Contingent share agreements based simply on time passing will
Select one: a. Always decrease DEPS b. Always increase DEPS c. Increase the DEPS numerator d. Decrease the DEPS denominator
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