Table 3
Saturday, July 3, 2021
Based on the information contained in Table 3, what was the total amount of Snark Enterprise's common stock dividend for 2012
Monday, January 18, 2021
A company's balance sheet reports stockholders' equity of $400,000, total liabilities of $600,000, and total assets of $1,000,000. What is the company's debt to equity ratio?
A company's balance sheet reports stockholders' equity of $400,000, total liabilities of $600,000, and total assets of $1,000,000. What is the company's debt to equity ratio?
A) 1.5
B) 0.66
C) 2.5
D) 1.0
Answer: A
The balance sheet of Montezuma reports total assets of $900,000 and $1,100,000 at the beginning and end of the year, respectively. The net income for the year is $100,000. What is Montezuma's return on assets?
A) 10%
B) 11%
C) 9%
D) 25%
Answer: A
Which of the following would result in an increase in the current ratio, but not necessarily the acid-test ratio?
Which of the following would result in an increase in the current ratio, but not necessarily the acid-test ratio?
A) Increase in current assets.
B) Increase in quick assets.
C) Decrease in current liabilities.
D) Decrease in current assets.
Answer: A
The mixture of liabilities and stockholders' equity a business uses is called its:
A) Bond contract.
B) Carrying value.
C) Capital structure.
D) Accounting equation.
Answer: C
Which of the following is not a true statement?
A) Companies that are believed to have high bankruptcy risk generally receive low credit ratings and must pay a higher interest rate for borrowing.
B) As a company's level of debt increases, the risk of bankruptcy increases.
C) Interest expense incurred when borrowing money, as well as dividends paid to stockholders, are both tax-deductible.
D) The mixture of liabilities and stockholders' equity a business uses is called its capital structure.
Answer: C
Friday, March 1, 2019
Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses
Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stockholders' equity are
a. held-to-maturity debt securities.
b. trading debt securities.
c. available-for-sale debt securities.
d. never-sell debt securities.
Answer: available-for-sale debt securities
Use of the effective-interest method in amortizing bond premiums and discounts results in
a. a greater amount of interest income over the life of the bond issue than would result from use of the straight-line method.
b. a varying amount being recorded as interest income from period to period.
c. a variable rate of return on the book value of the investment.
d. a smaller amount of interest income over the life of the bond issue than would result from use of the straight-line method.
Answer: a varying amount being recorded as interest income from period to period.
Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses as other comprehensive income and as a separate component of stockholders' equity are
a. available-for-sale securities where a company has holdings of less than 20%.
b. trading securities where a company has holdings of less than 20%.
c securities where a company has holdings of between 20% and 50%.
d. securities where a company has holdings of more than 50%.
Answer: available-for-sale securities where a company has holdings of less than 20%
With respect to the computation of earnings per share, which of the following would be most indicative of a simple capital structure?
With respect to the computation of earnings per share, which of the following would be most indicative of a simple capital structure?
a. Common stock, preferred stock, and convertible securities outstanding in lots of even thousands
b. Earnings derived from one primary line of business
c. Ownership interest consisting solely of common stock
d. None of these
Answer: Ownership interest consisting solely of common stock
Which of the following is not a characteristic of a noncompensatory stock purchase plan?
a. It is open to almost all full-time employees.
b. The discount from market price is small.
c. The plan offers no substantive option feature.
d. All of these are characteristics.
Answer: All of these are characteristics
What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively?
a. Decrease and no effect
b. Increase and no effect
c. Decrease and increase
d. Increase and decrease
Answer: Decrease and increase
Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated
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