In which section of the balance sheet would Treasury Stock b - 10605

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1. In which section of the balance sheet would Treasury Stock be reported? a)fixed assets b)long-term liabilities c)stockholders equity d)intangible assets

 

 

 

2. In which section of the financial statements would Paid-in Capital from Sale of Treasury Stock be reported? a)other expense on income statement b)intangible asset on balance sheet c)stockholders equity on balance sheet d)other income on income statement

 

 

 

3. All of the following are normally found in a corporation's stockholders' equity section except a)common stock b)paid-in capital in excess of par c)dividends in arrears d)retained earnings

 

 

 

4. The entry to record the issuance of stock certificates for a common stock dividend that had been declared would include a debit to a)common stock b)paid-in capital in excess of par-common stock c)stock dividends distributable d)cash

 

 

 

 5. Which of the following statements is not true about a 2-for-1 split? a) Par value per share is reduced to half of what it was before the split. b) Total contributed capital increases. c) The market price will probably decrease. d) A stockholder with ten shares before the split owns twenty shares after the split.

 

 

 

6. When a stock dividend is declared, which of the following accounts is credited? a)common stock b)dividend payable c)stock dividends distributable d)retained earnings

 

 

 

7. A bond indenture is a) a contract between the corporation issuing the bonds and the underwriters selling the bonds b) the amount due at the maturity date of the bonds c) a contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders. d) the amount for which the corporation can buy back the bonds prior to the maturity date

 

 

 

 8. When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are a)convertible bonds b)unsecured bonds c)debenture bonds d)callable bonds

 

 

 

 9. When the maturities of a bond issue are spread over several dates, the bonds are called a)serial bonds b)bearer bonds c)debenture bonds d)term bonds

 

 

 

10. If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $100,000 will be a) Equal to $100,000 b) Greater than $100,000 c) Less than $100,000 d) Greater than or less than $100,000, depending on the maturity date of the bonds

 

 

 

11. The interest rate specified in the bond indenture is called the a)discount rate b)contract rate c)market rate d)effective rate

 

 

 

12. The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is a) debit Bonds Payable, credit Cash b) debit Cash and Discount on Bonds Payable, credit Bonds Payable c) debit Cash, credit Premium on Bonds Payable and Bonds Payable d) debit Cash, credit Bonds Payable

 

 

 

13. If the market rate of interest is greater than the contractual rate of interest, bonds will sell a) at a premium b)at face value c)at a discount d) only after the stated rate of interest is increased.

 

 

 

14. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a) the cash flows from operating activities section b) the cash flows from financing activities section c) the cash flows from investing activities section d) a separate schedule

 

 

 

15. Which of the following is a noncash investing and financing activity? a) payment of a cash dividend b) payment of a six-month note payable c) purchase of merchandise inventory on account d) issuance of common stock to acquire land

 

 

 

 

 

16. Which of the following below increases cash? a) depreciation expense b) acquisition of treasury stock c) borrowing money by issuing a six-month note d) the declaration of a cash dividend

 

 

 

 17. Which one of the following below would not be classified as an operating activity? a) interest expense b)income taxes c)payment of dividends d)selling expenses

 

 

 

 

 

18. Cash paid for equipment would be reported in the statement of cash flows in a) the cash flows from operating activities section b) the cash flows from financing activities section c) the cash flows from investing activities section d) a separate schedule

 

 

 

19. On the statement of cash flows, the cash flows from financing activities section would include a) receipts from the sale of investments b) payments for the acquisition of investments c) receipts from a note receivable d) receipts from the issuance of capital stock

 

 

 

 

 

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