Who can dedare a dividend of a corporation? A Only the board of directors B Management or the stockholders Only the stockholders p None of the other answers is correct 45 We prepare our statement of cash flows using the indirect method. In the cash flows from operating activities sections, do we add or subtract for the following: (1) accounts receivable increased during the period 2) merchandise inventory decreased during the period A add for (1) and subtract for (2) B add for (1) and add for (2) subtract for (1) and add for (2) D subtract for (1) and subtract for (2) 20 21 46 Our company's fiscal year ends December 31. This year our company had net income of $750,000 The number of common shares outstanding at January 1 this year was 600,000 On May 1, we reacquired 30,000 shares and held them as treasury shares 26 What is the amount of basic earnings per share, as it would be shown on the income statement? 00 01 It does not go on the income statement 125 04 A B c D E 1.29 132 None of the other answers is correct. 47 10 11 Where on the statement of cash flows might we show "net income? A cash flows from operating activities indirect method B cash flows from operating activities direct method cash flows from investing activities D cash flows from finanding activites 12 13 14 48 15 1G 17 10 19 FASB surprised everyone by publishing a pronouncement that calculating lower of cost or market by dasses of merchandise is no longer GAAP. Since our company does calculate lower of cost or market this way, we have to change to another method. What is the probable appropriate accounting treatment for this situation? A We account for this retrospectively B We account for this prospectively C As management, we can choose whether to account for this either prospectively or retrospectively 21 49 This year, we will use the double dedining balance method of determining depredation expense. In previous years, we used the straight line method. How would we account for this change? A Prospectively B Retrospectively As management, we can choose whether to account for this either prospectively or retrospectively D The change is illegal, so we wouldn't do it and wouldn't account for it. 30 SO 34 Where on the statement of cash flows do we show "proceeds from issuing preferred stock"? A cash flows from operating activities B cash flows from investing activities cash flows from financing activites D nowhere. It does not go on the statement of cash flows 36