3. Which of the following show theproper effect of a stock split and a stock dividend?

Item Stock-Split Stock Dividend

A) Total Paid InCapital Increase Increase
B) Total RetainedEarnings Decrease Decrease
C) Total Par Value (common) Decrease Increase
D) Par Value PerShare Decrease No Change

4. Dabney, Inc., has 5,000shares of 5%, $100 par value, noncumulative preferred stock and40,000 shares of $1 par value common stock outstanding at December31, 2014. There were no dividends declared in 2013. The board ofdirectors declares and pays a $60,000 dividend in 2014. What is theamount of dividends received by the common stockholders in2014?

A) $0

B) $25,000

C) $10,000

D) $35,000

5. A $600,000 bond was retiredat 98 when the carrying value of the bond was $590,000. The entryto record the retirement would include a

A) gain on bond redemption of$10,000.

B) loss on bond redemption of$10,000.

C) loss on bond redemption of$2,000.

D) gain on bond redemption of$2,000.

6. The following data are availablefor Two-off Company.

Increase in accounts payable	$120,000
Increase in bonds payable	300,000
Sale of investments	150,000
Issuance of common stock	160,000
Payment of cash dividends	90,000

Net cash provided by financing activities is:

A) $180,000.

B) $370,000.

C) $360,000.

D) $420,000.

7. The net income reported onthe income statement for the current year was $220,000.Depreciation recorded on plant assets was $35,000. Accountsreceivable and inventories increased by $2,000 and $8,000,respectively. Prepaid expenses and accounts payable decreased by$2,000 and $12,000 respectively. How much cash was provided byoperating activities?

A) $200,000

B) $235,000

C) $220,000

D) $255,000

8. If a company reports a netloss, it

A) may still have a net increasein cash.

B) will not be able to pay cashdividends.

C) will not be able to get aloan.

D) will not be able to makecapital expenditures.

9. A creditor would be most interestedin evaluating which of the following ratios?

A) Asset turnover

B) Earnings per share

C) Payout ratio

D) Times interest earned

10. Lionel Company has beginningwork in process inventory of $220,000 and total manufacturing costsof $950,000. If cost of goods manufactured is $940,000, what is thecost of the ending work in process inventory?

A) $210,000.

B) $230,000.

C) $240,000.

D) $206,000.

12. Given the following data for Goodman Company, compute (A) total manufacturing costs and (B) costs ofgoods manufactured:

Direct materials used	$345,000		Beginning work in process	$15,000
Direct labor	305,000		Ending work in process	60,000
Manufacturing overhead	450,000		Beginning finished goods	75,000
Operating expenses	525,000		Ending finished goods	45,000

	Total Manufacturing Costs	Costs of Goods Manufactured
A)	$1,055,000	$1,100,000
B)	$1,070,000	$1,130,000
C)	$1,100,000	$1,055,000
D)	$1,130,000	$1,055,000

14. For Cevu Company, thepredetermined overhead rate is 75% of direct labor cost. During themonth, $750,000 of factory labor costs are incurred of which$200,000 is indirect labor. Actual overhead incurred was $420,000.The amount of overhead debited to Work in Process Inventory shouldbe:

A) $560,000

B) $412,500

C) $420,000

D) $562,500

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Question 3 option D Which of the following show the proper effect of a stock split and a ... View the full answer