The liabilities listed after Equity on the balance sheet (statement of financial position) are more associated with financial statements prepared in accordance with International Financial Reporting Standards.

True

False

QUESTION 2

The investment revaluation reserve is most associated with financial statements prepared in accordance with the U.S. GAAP

True

False

QUESTION 3

A net loss for the year will decrease retained earnings

True

False

QUESTION 4

Stock dividends cause a reduction in retained earnings, but never reduce total shareholders' equity.

True

False

QUESTION 5

The above service costs will likely be reported in the income statement as net income rather than in the statement of comprehensive income as other comprehensive income.

True

False

QUESTION 6

Two of the top three account classifications within equity are:

Preferred Stock and Retained Earnings

The par value of common shares and retained earnings

Earned capital and retained earnings

Preferred and common shares

QUESTION 7

Preferred shares are more associated with financial statements prepared in accordance with U.S. GAAP

True

False

QUESTION 8

Loss on pension plan assets will likely be recorded in the income statement as Net Income rather than in the statement of comprehensive income as Other Comprehensive Income.

True

False

QUESTION 9

Preferred shares are more associated with financial statements prepared in accordance with the U.S. GAAP

True

False

QUESTION 10

Basic earnings per share ignores all potential ordinary shares

True

False

QUESTION 11

Preferred stock is called preferred because it usually has two preferences. These preferences relate to:

Dividends and voting rights

Pair value and dividends

The preemptive right and voting rights

Assets at liquidation and dividends

QUESTION 12

Capital paid in excess of equality is more associated with financial statements prepared in accordance with the U.S. GAAP

True

False

QUESTION 13

Accumulated other comprehensive income is presented in the balance sheet as a component of equity.

True

False

QUESTION 14

Treasury stock transactions never increase retained earnings or net income

True

False

QUESTION 15

Section 718 of the FASB coding deals with stock options

True

False

QUESTION 16

In February, 2013, Galligan's declared cash dividends of $ 12 million to be paid in April of that year. What effect did the April transaction have on Galligan's accounts?

Decreased assets and liabilities

Decreased assets and shareholders' equity.

Increased liabilities and decreased shareholders' equity

None of the above is correct