The formula for computing book value per share is:
What is the Total stockholders' equity divided by the number of shares of common stock outstanding?
100
These regulations are not a major advantage of a corporation.
What are government regulations?
100
A corporation may have an excess of this and does not need immediate purchase of assets.
What is cash?
100
These are investments in government and corporation bonds.
What are debt investments?
100
When a company owns more than 50% of the common stock of another company, it usually prepares what type of financial statements?
What is consolidated financial statements?
200
Entries for cash dividends are required on the:
What are the declaration date and the payment date?
200
Additional of these are a major disadvantage of a corporation.
What are additional taxes?
200
A company may have this type of fluctuation in sales if they have more sales in summer and spring than in fall and winter.
What is seasonal?
200
In accounting for debt investments, companies make entries to record: (1) the acquisition, (2) the interest revenue, and this.
What is the sale?
200
When a company purchases stock, receive dividends, and sell the stock, they record investments in this:
What is common Stock?
300
ABC Corporation issues 1,000 shares of $10 par value common stock at $12 per share. In recording the transaction, the credits are...
What are Common Stock $10,000 and Paid-in Capital of Par Value $2,000?
300
Preferred stock may have priority over common stock except in:
What is voting?
300
Corporations purchase investments to generate this from investment income.
What is earnings?
300
In the acquisition of the bonds, Debt Investments is debited and this is credited.
What is cash?
300
When ownership is less than 20%, this method is used.
What is cost method?
400
XYZ, Inc. sells 100 shares of $5 par value treasury stock at $13 per share. If the cost of acquiring the shares was $10 per share, the credits are...
What are Treasury Stock $1,000 and Paid-in Capital from Treasury Stock $300?
400
In the stockholder's equity section, the cost of treasury stock is deducted from...
What are total paid-in capital and retained earnings?
400
This reason for purchasing investments is similar to Procter & Gamble buying Gillette.
What is strategic reason?
400
When recording the interest revenue for the bonds, Cash is debited and this is credited.
What is interest revenue?
400
The equity method is used when ownership is between what percentage?
What is 20% and 50%?
500
When a stockholders' equity statement is presented, it is not necessary to prepare a(an):
What is a retained earnings statement?
500
A prior period adjustment is a correction of an error that is made directly to this
What are retained earnings?
500
When the economy is booming, a corporation may generate excess cash, but when the economy reaches a downturn, it may be wise to do this with the excess funds.
What is invest?
500
When recording the sale of the bonds, Cash is debited, Debt Investments and this item is credited.
What is Gain on Sale of Debt Investments?
500
These statements indicate the magnitude and scope of operations of the companies under common control.