Question Details

(Answered) Multiple Choice Questions: Working Capital, Dividends, Stock


13-2. Assume a company's current ratio is less than one. If the company pays current liabilities with cash, the new current ratio will;b. decrease.;c. remain the same.;d. cannot be determined with the information given;12-3. Stockton-Meadows Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year. Accounts Payable relates solely to the purchase of merchandise. Sales on account were $532,100 and cost of goods sold was $358,000. The total purchases of merchandise for the period were;a. $174,100.;d. $403,000.;12-4. Coker's Appliance Shop reported interest revenue of $9,500 and its Interest Receivable account decreased $1,200 during the same period. Interest received for the period amounted to;a. $1,200.;b. $10,700.;d. $8,300.;12-5. Berlin & Snider enterprises Inventory account decreased $37,500 and its Accounts Payable account (which relates solely to the purchase of merchandise) decreased $13,760 during the year. Berlin & Snider also reported sales of $856,000 and cost of goods sold of $597,600 during the same period. Berlin & Snider's payments to suppliers for inventory during the year were;a. $621,340.;b. $573,860.;d. $648,860.;12-6. Tri-Square Company reported plant assets, net of accumulated depreciation, on January 1, 2004, at $645,000 and $732,500 on December 31, 2004. The income statement showed depreciation of $48,300 and a $5,600 loss on sale of plant assets. Tri-Square Company acquired $213,000 of plant assets during the year. The proceeds from the sale of plant assets were;a. $125,500.;b. $89,900.;c. $71,600.;9-8. The payment of a cash dividend previously recorded;a. reduces stockholders' equity and reduces assets.;b. increases liabilities and increases assets.;c. reduces liabilities and reduces assets.;9-9. The B. Disraeli Corporation has 10,000 shares of 10%, $100 par value, cumulative preferred stock outstanding and 50,000 shares of $5 par value common stock outstanding. As of the beginning of this fiscal year, there were 2 years' dividends in arrears on the preferred stock. The board of directors wants to give the common stockholders a $1.50 dividend per share at the end of this fiscal year. The total dividends to be declared by the B. Disraeli Corporation are;a. $105,000.;b. $120,000.;d. $375,000.;9-10. The entry to record the distribution of a stock dividend includes a;a. credit to Common Stock.;b. debit to Retained Earnings.;c. credit to Retained Earnings.;9-11. Dividends in arrears on preferred stock are reported as a;b. footnote to the financial statements.;c. reduction in retained earnings.;d. current asset on the balance sheet.;9-12. The declaration of a cash dividend;a. increases stockholders' equity and reduces liabilities.;b. increases liabilities and increases stockholders' equity.;c. increases liabilities and decreases stockholders' equity.;9-13. A large stock dividend will;b. have no effect on total assets.;c. have no effect on total assets or total owners' equity.;d. increase total owners' equity.;9-15. The purchase of treasury stock;b. decreases assets and decreases stockholders' equity.;c. decreases assets and increases liabilities.;d. increases assets and decreases stockholders' equity.;9-16. The number of shares of treasury stock plus the number of shares outstanding equals;a. the number of shares authorized.;b. the number of shares issued.;c. the number of shares authorized that have not been issued.;9-17. Assets received in exchange for the issuance of stock should be recorded at;a. historical cost.;c. fair market value as determined by a good-faith estimate from independent appraisers. d. none of these answers;9-19. A dividend becomes a legal liability of the corporation on the;a. date of payment.;b. date of declaration.;c. date of record.;9-21. The entry to record the issuance of 12,500 shares no-par value common stock at $2.50 per share includes a;b. credit to Retained Earnings for $31,250.;c. credit to Common Stock for $31,250.;d. credit to Paid-in Capital in Excess of Par Value-Common for $31,250.;9-23. The entry to record the issuance of 8,000 shares of $5 par value common stock at $9 per share includes a;a. credit to Common Stock for $72,000.;b. credit to Common Stock for $40,000.;d. debit to Paid-in Capital in Excess of Par Value-Common for $32,000.;9-24. The payment of a cash dividend previously recorded;b. increases liabilities and increases assets.;c. reduces liabilities and reduces assets.;d. increases stockholders' equity and reduces liabilities.;9-25. The entry to record the payment of a cash dividend previously declared includes a;a. debit to Retained Earnings.;c. credit to Dividends Payable.;d. debit to Dividends Payable.;6-26. If ending inventory for the year ended December 31, 2004, is overstated by $25,000;a. net income for 2005 will be understated by $25,000.;b. net income for 2005 will be overstated by $25,000.;c. ending inventory for 2005 will be understated by $25,000.;6-27. If ending inventory on December 31, 2004, is overstated, then;b. cost of goods sold for the year ended December 31, 2004, will be overstated.;c. gross profit for the year ended December 31, 2004, will be understated.;d. gross profit for the year ended December 31, 2005, will be understated.;6-29. Which inventory method presents accurate ending inventory on the balance sheet but fails to match cost of goods sold with revenue on the income statement?;a. FIFO;c. weighted-average;d. specific identification;6-30. An item is considered material if;a. its dollar value is greater than 1.5% of total assets.;b. its exclusion from the financial statements would affect the decisions of a user of the financial statements.;6-31. Which of the following statements is generally true when prices are rising?;a. LIFO produces taxable income that exceeds taxable income under FIFO.;b. The use of LIFO will result in paying less in taxes than under FIFO.;d. FIFO results in paying less in taxes than under LIFO.;6-32. When the FIFO method is used, cost of goods sold is assumed to consist of;b. the units with the lowest per unit cost.;c. the units with the highest per unit cost.;d. the oldest units.;6-33. Which of the following would be included in the Cost of Goods Sold account on a merchandising company's income statement?;a. shipping costs from the manufacturer to the merchandiser;b. sales commissions;d. sales taxes;6-34. If ending inventory is overstated, then;a. cost of goods sold and ending inventory will both be overstated.;b. cost of goods sold and ending inventory will both be understated.;d. cost of goods sold will be understated and ending inventory will be overstated.;6-35. An error in the ending inventory for the year ended December 31, 2004;a. automatically creates errors in cost of goods in the 2004 and 2005 financial statements. b. has no effect on the 2004 financial statements but will create an error in the 2005 financial statements.;d. affects only the 2004 financial statements.;6-37. All of the following are reasons for choosing the LIFO versus the FIFO costing method except;a. it reports the most up-to-date inventory values on the balance sheet.;c. LIFO uses more current costs in calculating cost of goods sold.;d. it is generally more conservative.
More Details:

Multiple Choice Questions: Working Capital, Dividends, Stock

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 18, 2020

PRICE: $18.50

Solution~00031147583968.zip (25.37 KB)

Buy this answer for only: $18.50

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now