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26 Cards in this Set
- Front
- Back
Which of the following is not an advantage form of organization |
government regulations |
|
A major disadvantage of a corporation is |
Additional taxes |
|
Which of the following statements is false |
Par value and market price of a company’s stock are always the same |
|
1,000 shares of $10 par value common stock at $12. Credits are recorded to |
Common stock $10,000 and paid in cap total in excess of par $2,000 |
|
100 shares at 13 per share. They were acquired at 10. The entry for sale |
Treasury stock $1,000 and paid in capital $300 |
|
Stockholders equity section, the cost of treasury stock is deducted from? |
Total paid-in capital and retained earnings |
|
Preferred stock may have priority over common stock except in |
Voting |
|
Entries for Cash dividends are required on the |
Declaration date and payment date |
|
Which of the following statements about small stock dividends is true |
Market price per share should be assigned to the dividend shares |
|
All but one of the following is reported in a retained earnings statement |
Sales revenue |
|
A prior period adjustment is |
A correction of an error that is recorded directly to retained earnings |
|
In the stockholders equity section of the balance sheet, common stock |
Is part of paid-in capital |
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Which of the following is not reported under additional paid-in capital? |
Common stock |
|
When a stockholders equity statement is presented it is not necessary to prepare a |
Retained earnings statement |
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Which is not a primary reason why corporations invest in debt and equity securities |
They are required to by the law |
|
Debt investments are initially recorded at |
Cost |
|
Hanes company sells debt investments costing $26,000 for $28,000. Journalizing the sale ? |
Debt investments and gain on sale of debt investments |
|
You have a controlling interest if |
You own more than 50% of a company’s stock |
|
Net cash provided by financing activities |
130,000
(100,000+60,000-30,000) |
|
Net cash provided by investing activities |
120,000
(100,000+50,000-30,000) |
|
Net cash provided by investing activities |
120,000
(100,000+50,000-30,000) |
|
Net cash provided by operating activities |
220,000
(100,000+40,000-10,000+20,000-30,000) |
|
Items that are added back to net income in deterring net cash provided by operating activities under indirect method do not include ? |
An increase in inventory |
|
Which of the following is incorrect about the statement of cash flows |
The operating section is the last section |
|
Which is an example of a cash flow from a financing activity |
Insurance of debt cash |
|
Cash dividends paid to stockholders are classified on the statement of cash flows as |
Financing activities |