1. Current liabilities are _______.(Points : 2)

due but not receivable for more than one year

due but not payable for more than one year

due and receivable within one year

due and payable within one year

Question 2. 2. If bonds are issued at a premium, the stated interest rate is(Points : 2)

higher than the market rate of interest lower than the market rate of interest too low to attract investors adjusted to a higher rate of interest

Question 3. 3. Based on the following information, what are the earnings per share?

Common shares outstanding	115,000
Preferred stock dividend declared and paid	$40,000
Net income	$350,000

(Points : 2)

$3.39 $3.04 $2.96 $2.70

Question 4. 4. Stockholders' equity(Points : 2)

is usually equal to cash on hand includes paid-in capital and liabilities includes retained earnings and paid-in capital is shown on the income statement

Question 5. 5. What is one reason to undergo a REVERSE stock split?(Points : 2)

To reduce the stock's market price per share To increase total stockholders' equity To reduce total stockholders' equity To increase the market value of the stock per share

Question 6. 6. A current liability is a debt that can reasonably be expected to be paid _______.(Points : 2)

between 6 months and 18 months out of currently recognized revenues within one year out of cash currently on hand

Question 7. 7. What is the effect of a stock dividend on the balance sheet?(Points : 2)

Decrease total assets and decrease total stockholders' equity Decrease total assets and increase total stockholders' equity Increase total liabilities and decrease total stockholders' equity No effect on total assets, total liabilities, or total stockholders' equity

Question 8. 8. Where is interest expense listed on the income statement?(Points : 2)

Other expense section Cost of merchandise sold Operating expenses Interest expense is on the balance sheet, not the income statement

Question 9. 9. Which of the following is usually NOT a prerequisite to paying a cash dividend?(Points : 2)

Formal action by the board of directors Market value in excess of par value per share Sufficient cash Sufficient retained earnings

Question 10. 10. When the contract rate of interest on bonds is higher than the market rate of interest, the bonds sell at(Points : 2)

premium their face value their maturity value. a discount

Question 11. 11. A corporation has 50,000 shares of $100 par value stock outstanding that has a current market value of $180. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately _______.(Points : 2)

$30 $36 $45 $50

Question 12. 12. When the contract rate of interest on bonds is less than the market rate of interest, the bonds sell at(Points : 2)

a premium their face value their maturity value. a discount

Question 13. 13. A company sold 200 shares of common stock with a par value of $5 at a price of $13 per share. What is the effect on the accounts of this transaction?(Points : 2)

Increase cash $2,600; increase retained earnings $2,600 Increase cash $1,000; increase common stock $1,000 Increase cash $2,600; increase common stock $1,000 and increase paid-in capital $1,600 Increase cash $2,600; increase common stock $1,600 and increase paid-in capital $1,000

Question 14. 14. Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet?(Points : 2)

Bonds Payable Common Stock Dividends Payable Cash

Question 15. 15. A company sold 200 shares of common stock with a par value of $5 at a price of $12 per share. Which section of the statement of cash flows will contain this transaction?(Points : 2)

Operating activities Investing activities Financing activities Sale of stock will not appear on the statement of cash flows

Question 16. 16. If a corporation issues only one class of stock, it is called _______.(Points : 2)

common stock treasury stock no-par stock preferred stock

Question 17. 17. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?(Points : 2)

5,000 100,000 60,000 55,000

Question 18. 18. When are contingent liabilities required to be recorded?(Points : 2)

When the liability is probable When the amount is reasonably estimable When the liability becomes legally enforceable Both the liability must be probable and the amount must be reasonably estimable before the contingent liability is recorded

Question 19. 19. How is treasury stock shown on the balance sheet?(Points : 2)

As an asset As a decrease in stockholders' equity As an increase in stockholders' equity Treasury stock is not shown on the balance sheet

Question 20.20. A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be _______.(Points : 2)

200,000 shares 50,000 shares 250,000 shares 12,500 shares