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Treasury Stock is considered to be a(n) __________ account.

akosiraff
Apr 4th, 2013
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  1.  
  2. Download: http://solutionzip.com/downloads/treasury-stock-is-considered-to-be-an/
  3. Question 1 of 20 5.0 Points
  4. Treasury Stock is considered to be a(n) __________ account.
  5. A. asset
  6. B. contra-equity
  7. C. liability
  8. D. revenue
  9. Reset Selection
  10. Mark for Review What’s This?Question 2 of 20 5.0 Points
  11. QUESTIONS 2 THROUGH 4 ARE BASED ON EXHIBIT 4-1.
  12. Exhibit 4-1
  13. The Unicoi Company was formed on January 2, Year 1. The company sold 10,000 shares of $2 par value stock for $5 per share. On July 1, Year 1, Unicoi bought back 2,000 shares of stock for $6 per share. The Treasury Stock was resold on September 1, Year 1, for $8 per share.
  14. Refer to Exhibit 4-1. Which one of the following is the entry to record the original sale of the stock?
  15. A.
  16. B.
  17. C.
  18. D.
  19. Reset Selection
  20. Mark for Review What’s This?Question 3 of 20 5.0 Points
  21. Refer to Exhibit 4-1. Which one of the following is the correct entry to record the purchase of Treasury Stock?
  22. A.
  23. B.
  24. C.
  25. D.
  26. Reset Selection
  27. Mark for Review What’s This?Question 4 of 20 5.0 Points
  28. Refer to Exhibit 4-1. Which one of the following is the correct entry to record the sale of Treasury Stock?
  29. A.
  30. B.
  31. C.
  32. D.
  33. Reset Selection
  34. Mark for Review What’s This?Question 5 of 20 5.0 Points
  35. When a dividend is not declared on preferred stock, and the common shareholders cannot receive a dividend until all past and current dividends are paid to the preferred shareholders, the preferred stock is:
  36. A. cumulative.
  37. B. noncumulative.
  38. C. nonparticipating.
  39. D. participating.
  40. Reset Selection
  41. Mark for Review What’s This?Question 6 of 20 5.0 Points
  42. QUESTIONS 6 AND 7 ARE BASED ON EXHIBIT 4-2.
  43. Exhibit 4-2
  44. Refer to Exhibit 4-2. What is the basic earnings per share for Year 6?
  45. The Vogel Corporation reported net income for Year 6 of $355,000. Vogel began the year with 200,000 shares of $5 par value common shares outstanding and 5,000 shares of $100 par value 8% preferred shares outstanding. On July 1, Vogel sold (issued) 20,000 shares of common stock for $12 per share. Vogel paid dividends to both the common and preferred shareholders in December.
  46. A. $1.43 per share
  47. B. $1.50 per share
  48. C. $1.58 per share
  49. D. $1.61 per share
  50. Reset Selection
  51. Mark for Review What’s This?Question 7 of 20 5.0 Points
  52. Refer to Exhibit 4-2. If each share of preferred stock is convertible into 8 shares of common stock, what is the diluted earnings per share for Year 6?
  53. A. $1.26 per share
  54. B. $1.42 per share
  55. C. $1.58 per share
  56. D. $1.61 per share
  57. Reset Selection
  58. Mark for Review What’s This?Question 8 of 20 5.0 Points
  59. On May 5, 1980, the Marr Company issued a 5-year stock option to the Chief Financial Officer. The option entitled the employee to buy 1,000 shares of stock for $4 per share when the stock was selling for $4 per share. Under APB Opinion No. 25, what is the compensation expense to be recorded by Marr in total over the 5-year vesting period?
  60. A. $0
  61. B. $1,000
  62. C. $2,000
  63. D. $4,000
  64. Reset Selection
  65. Mark for Review What’s This?Question 9 of 20 5.0 Points
  66. Over the vesting period for employee stock options, SFAS No. 123 requires that the entire compensation expense be recognized:
  67. A. equally in each year of the vesting period.
  68. B. in the first year of the vesting period.
  69. C. in the last year of the vesting period.
  70. D. only if the options are exercised.
  71. Reset Selection
  72. Mark for Review What’s This?Question 10 of 20 5.0 Points
  73. By using the book value method to record the conversion of convertible bonds, managers are able to protect themselves from recording:
  74. A. extraordinary gains.
  75. B. extraordinary losses.
  76. C. miscellaneous profits.
  77. D. ordinary losses.
  78. Reset Selection
  79. Mark for Review What’s This?Question 11 of 20 5.0 Points
  80. Which of the following does not accurately describe the proprietary view of the firm?
  81. A. Its focus is on the firm’s net assets.
  82. B. It is the prevailing view of GAAP.
  83. C. Its focus is on owners’ equity.
  84. D. Whether creditors or shareholders provided the firm’s assets is irrelevant.
  85. Reset Selection
  86. Mark for Review What’s This?Question 12 of 20 5.0 Points
  87. Cash dividends paid by a corporation:
  88. A. are an expense of the corporation that declared the dividend.
  89. B. reduces the net income of the corporation that declared the dividend.
  90. C. reduces the retained earnings of the corporation that declared the dividend.
  91. D. reduces the retained earnings of the corporation.
  92. Reset Selection
  93. Mark for Review What’s This?Question 13 of 20 5.0 Points
  94. Treasury stock is reported within the balance sheet as:
  95. A. a long-term investment.
  96. B. a short-term investment.
  97. C. an account contra to retained earnings.
  98. D. an account contra to owners’ equity.
  99. Reset Selection
  100. Mark for Review What’s This?Question 14 of 20 5.0 Points
  101. Shareholders who sell back shares of the company stock as treasury stock are:
  102. A. not taxed.
  103. B. taxed at ordinary rates.
  104. C. taxed at capital gains rates.
  105. D. subject to tax penalties.
  106. Reset Selection
  107. Mark for Review What’s This?Question 15 of 20 5.0 Points
  108. Financial analysts should always review stock repurchase plans carefully because:
  109. A. the plans always produce above-market returns.
  110. B. the plans usually produce above-market returns.
  111. C. it is important to determine the reasons for the buyback.
  112. D. the plans are always beneficial to the shareholders.
  113. Reset Selection
  114. Mark for Review What’s This?Question 16 of 20 5.0 Points
  115. Companies with a history of net operating losses are prone to issue which one of the following to raise money?
  116. A. Debenture bonds
  117. B. Serial bonds
  118. C. Preferred stock
  119. D. Notes payable
  120. Reset Selection
  121. Mark for Review What’s This?Question 17 of 20 5.0 Points
  122. When a publicly traded company issues both common stock and preferred stock, the SEC requires that:
  123. A. preferred and common stock be combined in the equity section.
  124. B. preferred and common stock be clearly differentiated on the balance sheet.
  125. C. all preferred stock be shown as a liability.
  126. D. mandatorily redeemable preferred stock be shown as a liability.
  127. Reset Selection
  128. Mark for Review What’s This?Question 18 of 20 5.0 Points
  129. A 3 for 1 stock split will reduce the per share par value and will:
  130. A. decrease the number of shares proportionately.
  131. B. decrease earnings per share.
  132. C. increase owners’ equity.
  133. D. increase the total par value of the common stock.
  134. Reset Selection
  135. Mark for Review What’s This?Question 19 of 20 5.0 Points
  136. The denominator used in the calculation of basic earnings per share is the:
  137. A. number of common shares outstanding at the end of the year.
  138. B. number of preferred shares outstanding at the end of the year.
  139. C. weighted average number of common shares outstanding during the year.
  140. D. weighted average number of common shares and preferred shares outstanding during the year.
  141. Reset Selection
  142. Mark for Review What’s This?Question 20 of 20 5.0 Points
  143. A company that has earnings in Year 2 equal to the earnings of Year 1 can improve its Year 2 reported earnings per share by:
  144. A. selling additional common stock.
  145. B. selling additional preferred stock.
  146. C. selling shares of treasury stock at a price exceeding what was paid for the treasury stock.
  147. D. purchasing shares of treasury stock.
  148.  
  149. Download: http://solutionzip.com/downloads/treasury-stock-is-considered-to-be-an/
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