When a company declares a stock dividend, which of the following occurs?
a. A liability is created.
b. Retained earnings is reduced.
c. Stockholders’ equity is decreased.
d. The financing section of the statement of cash flows is decreased.
Long-term assets are $800, current liabilities are $500, and long-term liabilities are
$600. If the current ratio is 2.5 to 1, then current assets are
a. $ 200
b. $ 625
c. $1,250
d. $2,000
Select where the following accounts would be reported on CocaÂCola’s financial
statements. (Select all that apply.)
Gain on sale of plant asset a. Balance Sheet-Property, Plant, and Equipment
b. Balance Sheet-Intangible Assets
c. Balance Sheet-Current Assets
d. Balance Sheet-Other Assets
e. Income Statement-Operating Section
f. Income Statement-Other Revenue and Expense Section
g. Statement of Cash Flows
Which of the following terms best describes ‘œCost of goods available for sale’?
a. Cost of goods available for sale is an expense account.
b. Cost of goods available for sale is added to beginning inventory to determine cost of
purchases during the period.
c. Cost of goods available for sale is subtracted from net sales to arrive at the gross
margin
d. Cost of goods available for sale is allocated into cost of goods on hand and cost of
goods sold at the end of the fiscal year
The effect of recording depreciation for the year is a(n)
a. decrease in assets and a decrease in net income.
b. decrease in assets but no change in owners’ equity.
c. increase in assets and an increase in net income.
d. decrease in net income and no change in assets.
A company that forgets to recognize depreciation for the year overstates its income and
assets.
a. True
b. False
Most longÂterm liabilities are related to a firm’s investing activities.
a. True
b. False
Quan uses a periodic inventory system. At the end of April, Quan had 20 units on hand.
If Quan, Inc. uses the weighted average cost inventory method, how much is cost of
goods sold for April?
a. $230
b. $232
c. $240
d. $250
Several items from the financial statements of Standard Tires are listed below. Use the f
ollowing answer choices to identify the type of accountf
or each item listed. Place your answers in the space provided.
a. Assets
b. Liabilities
c. Revenues
d. Expenses
e. Owners’ equity Long-term debt
Webb Company
Selected data from the accounting records of Webb Company are listed below:
Read the information about Webb Company. What is Webb’s income from operations?
a. $ 1,600
b. $ 2,000
c. $ 2,200
d. $ 2,800
is (are) the expenditure(s) incurred in the discovery of new knowledge and the
translation of research into a design or plan for a new product.
Select the best answer from the list below to complete statements 131-141 that follow.
Aallows preferred stockholders to share on a percentage basis in the distribution of an
abnormally large dividend.
The length of time a note is outstanding (that is, the period of time between the date it is
issued and the date it matures) is called the ____________________.
The maker of a note recognizeson its income statement.
Use the current asset section of the balance sheets of the Breeze Company as of June
30, 2016 and 2015 presented below to answer the questions that follow.
REQUIRED:
In the spaces provided below, complete a vertical analysis of the current asset section of
Breeze Company’s balance sheets for 2016 and 2015. Your answers should be rounded
to one decimal place, e.g., 10.3%.