Statements
A company's year-end comparative statement of financial position reflects the following changes from the prior year: cash increased by $40,000, total liabilities increased by $32,000, and all other assets decreased by $65,000. Which of the following statements is correct regarding the current-year change in the company's stockholders' equity?
A. It decreased by $57,000.
B. It decreased by $32,000.
C. It increased by $105,000.
D. It increased by $25,000.
A. It decreased by $57,000
Envoy Co. manufactures and sells household products. Envoy experienced losses associated with its small appliance group. Operations and cash flows for this group can be clearly distinguished from the rest of Envoy's operations. Envoy plans to sell the small appliance group with its operations. What is the earliest point at which Envoy should report the small appliance group as a discontinued operation?
A. When Envoy classifies it as held for sale.
B. When Envoy first sells any of the assets of the segment.
C. When Envoy sells the majority of the assets of the segment.
D. When Envoy receives an offer for the segment.
A. When Envoy classifies it as held for sale.
The balance in the accumulated other comprehensive income account at the end of the current year is a debit balance. Where in the financial statements should the balance be properly shown?
A. As an expense net of tax between discontinued operations and net income.
B. In the balance sheet as a reduction of equity.
C. In the balance sheet as an asset.
D. As an expense on the statement of comprehensive income.
B. In the balance sheet as a reduction of equity.
Which of the following items is included in accumulated other comprehensive income or loss?
A. Unrealized holding gains or losses on securities classified as trading securities.
B. Unrealized gains and losses from a derivative properly designated as a fair value hedge.
C. A reduction of shareholders' equity related to employee stock ownership plans.
D. Gains and losses from defined benefit pension plan accounting.
D. Gains and losses from defined benefit pension plan accounting.
Candy Co., a U.S. company, imported goods for 790,000 yen on November 15, Year 1. Candy Co. paid for the goods on December 15 of the same year. The following exchange rates were applicable:
Date. Exchange Rate
Nov. 15, Yr. 1 $0.013
Dec. 15, Yr. 1 $0.020
On November 15, Year 1, Candy Co. will book a:
A. Debit to accounts payable of $10,270.
B. Credit to foreign exchange transaction gain of $5,530.
C. Credit to foreign exchange transaction loss of $5,530.
D. Debit to purchases of $10,270.
D. Debit to purchases of $10,270