Menu
support@businesspapershelp.com
+1(805) 568 7317

multiple choice questions 34 stock splits a allow management to conserve cash b give 4298481

 

Multiple Choice Questions
34. Stock splits: 
A. Allow management to conserve cash.
B. Give stockholders more shares.
C. Cause no change in total assets, liabilities, or stockholders' equity.
D. Allow management to conserve cash, give stockholders more shares, and cause no change in total assets, liabilities, or stockholders' equity.

 

 

35. It would be reasonable to assume that: 
A. Basic earnings per share should exceed diluted earnings per share.
B. Diluted earnings per share should exceed basic earnings per share.
C. Basic earnings per share should be equal to diluted earnings per share.
D. Basic earnings per share would not be presented with diluted earnings per share.

 

 

36. A small stock dividend is recorded at: 
A. Market value.
B. Book value.
C. Par value.
D. No amount, just a memorandum entry is required.

 

 

37. Treasury stock appears as: 
A. An asset account.
B. A liability account.
C. An expense account.
D. An equity account.

 

 

38. Extraordinary items are found on the income statement: 
A. Before discontinued operations.
B. After discontinued operations.
C. Before income from continuing operations.
D. After prior period adjustments.

 

 

39. A company had 125,000 shares of common stock outstanding on January 1 and then sold 35,000 additional shares on March 30. Net income for the year was $594,750. What are earnings per share? 
A. $4.73.
B. $4.58.
C. $3.93.
D. $6.61.

 

 

40. A company failed to make an adjusting entry in the prior year to accrue earned revenue. To correct this they should: 
A. Correct last year's statement by increasing net income.
B. Correct this year's statements with a prior period adjustment increasing beginning retained earnings.
C. Correct this year's statements with a prior period adjustment decreasing beginning retained earnings.
D. Correct this year's statements with a prior period adjustment increasing ending retained earnings.

 

 

41. A prior period adjustment is a correction made to: 
A. Retained earnings of the beginning of the period.
B. Retained earnings at the end of the period.
C. Net income of the current year.
D. Only to last years' financial statements.

 

 

42. The price-earnings ratio is the: 
A. Book value of a share of common stock divided by EPS.
B. Market price of a share of common stock divided by EPS.
C. Par value of a share of common stock divided by EPS.
D. Market price divided by book value of a share of stock.

 

 

43. Which of the following would have no effect on Retained Earnings? 
A. Declaration of a cash dividend.
B. Declaration of a stock dividend.
C. Declaration of a stock split.
D. A prior period adjustment.

 

 

 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now