ACC2363_QUIZ 1_Q #93

Select from the option list provided the appropriate balance sheet classification for each balance sheet item below. Each choice may be used once, more than once, or not at all. Balance sheet item 1. Preferred stock 2. Trade accounts payable 3. Bonds payable (due in 15 years) 4. Note payable (due in 7 months) 5. Direct costs of issuing common stock 6. Treasury stock (at cost) 7. Appropriation for contingencies 8. Common stock subscriptions receivable 9. Discount on bonds payable 10. Bonds payable issue costs Select an option below O Current liabilities O Noncurrent liabilities O Capital stock O Additional paid-in capital O Retained earnings O Other classification Classification 6 E

Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. Initial measurement of stock options. 2. The measurement date for share-based payments classified as liabilities. 3. The formula to calculate diluted earnings per share. 4. The way stock dividends or stock splits in the current year affect the presentation of EPS in the income statement.

How is treasury stock reported on the balance sheet?   Select one: Investment Contra asset Current asset Reduction of stockholders' equity

In calculating earnings per share, a company uses the treasury stock method when   a. it recognizes the assumed impact of exercising outstanding warrants.   b. it develops a methodology to handle the premium paid on exercised share options.   c. it needs to value the cash received for a convertible bond.   d. it needs to value treasury stock repurchased during the year.

A stock has returns of solve this question general Accounting

In applying the treasury shares (i.e., cash in/cash out) method to determine the dilutive effect of shares, options and warrants, the proceeds assumed to be received upon exercise of the options and warrants    Select one: a. are used to calculate the number of common shares repurchased at the average market price, when calculating diluted earnings per share. b. are added, net of tax, to the numerator of the calculation for diluted earnings per share. c. are disregarded in the calculation of earnings per share if the exercise price of the options and warrants is less than the ending market price of common shares. d. are deducted from the income available to common share holders. e. None of the above.

A company wishes to raise funds by issuing either bonds or cumulative preferred stock. How will the annual interest or dividend affect total liabilities each year?    a. Interest is a current liability each year (until paid)   b. Interest and cumulative preferred dividends in arrears are non-current liabilities each year (until paid)   c. Cumulative preferred dividend in arrears are a current liability each year (until paid)   d. Both interest and cumulative preferred dividends in arrears are current liabilities each year (until paid)

Liability and Equity Classification   Select from the option list provided the appropriate balance sheet classification for each balance sheet item below. Each choice may be used once, more than once, or not at all. Balance sheet item Classification 1. Preferred stock   2. Trade accounts payable   3. Bonds payable (due in 15 years)   4. Note payable (due in 7 months)   5. Direct costs of issuing common stock   6. Treasury stock (at cost)   7. Appropriation for contingencies   8. Common stock subscriptions receivable   9. Discount on bonds payable   10. Bonds payable issue costs     Choices: Retained earnings. Capital stock. Noncurrent liabilities. Other classification. Current liabilities. Additional paid-in capital.

The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio. Group of answer choices True False

Can you please answer the general accounting question?

The par value of a stock * O is legally significant. O reflects the most recent market price. is selected by the SEC. is indicative of the worth of the stock.

The par value of a stock reflects the most recent market price. is immaterial in the majority of cases. O is selected by the SEC. O is indicative of the worth of the stock.

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Return for the entire period is. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $31.42 $31.65 $28.33 $31.96 $39.34 $42.32 Dividend D $0.22 $0.21 $0.19 $0.19 1

Access the FASB Accounting Standards Codification at the FASB website and select Basic View for free access. Determine the specific seven-, eight-, or nine-digit Codification citation (XXX-XX-XX-X) for accounting for each of the following items: Required: 1. Initial measurement of stock options. 2. The measurement date for share-based payments classified as liabilities. 3. The formula to calculate diluted earnings per share. 4. The way stock dividends or stock splits in the current year affect the presentation of EPS in the income statement.

Assume these are the stock market and Treasury bill returns for a 5-year period in the attached image: A. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)                            Risk Premium 2013                         % 2014                         % 2015                         % 2016                        % 2017                       % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

How do you journalize the issuance of stock at par, t premium, and at discount.

A stock's par value refers to the: O A. Issue price of the stock. O B. Value assigned per share by the corporate charter. O C. Market value of the stock on the date of the financial statements. D. Maximum selling price of the stock.