The stockholders' equity section of the balance sheet includes all of the following except:

A.Dividends.

B. Contributed Capital.

C. Treasury Stock.

D. Retained Earnings.

Preferred stock is generally classified as stockholders' equity under both GAAP and IFRS.

True

False

If the market rate exceeds the stated interest rate, a bond will sell at a premium.

True

False

A typical classified balance sheet provides no information about which of the following items?

A.To whom the company owes money

B. How much the company owes

C. For what the company owes money

D. The proportion of the company's debts that will be paid in the short-term

The straight-line method of amortization allocates the amount of bond premium or discount over each period of a bond's life in amounts corresponding to the bond's carrying value.

True

False

Corporations can raise large amounts of money because:

A.investors always prefer to invest in stock so they can receive dividends.

B. investing in the stock market is the surest way to get rich quick.

C. shares of stock can be purchased in small amounts, so even small investors can participate.

D. stocks are always a good investment.

A stock split increases total stockholders' equity.

True

False

Payroll taxes paid by employees include which of the following?

A.Social security, federal income tax, and federal unemployment tax

B. Federal income tax withheld, state income tax withheld, and Medicare

C. Federal income tax, federal unemployment tax, and Medicare

D.Social security, federal unemployment tax, and state unemployment tax

Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.

True

False

Why is Additional Paid-In Capital recorded for a small stock dividend?

A.Because small stock dividends are recorded at market value.

B. Because large stock dividends are recorded at market value.

C. Because large stock dividends are recorded at par value.

D. Because small stock dividends are recorded at par value.