Acct 370 Exam 4 Answers Key

Liberty University ACCT370 Quiz 4 (100% Correct) 

Included many different versions (8 Different versions set, 1000+ MCQ Answers Key) to get an A on your grade.

ACCT-370-QUIZ-4 (CH 16-20)

The below shown few sample Questions.

1. A bond with a carrying value of $790,000 was converted into 100,000 shares of $5 per share par value common stock at a time when the market value per share was $9.00 per share. Which of the following statements does not accurately describe the financial accounting for the conversion?

a. A loss of $110,000 will be recognized if the market value method of recording the conversion is used.

b. Total owners' equity increases $790,000 if the market value method of recording the conversion is used.

c. Total owners' equity increases $790,000 if the book value method of recording the conversion is used.

d. Total owners' equity increases $900,000 if the market value method of recording the conversion is used.

2. An argument raised by opponents to the FASB's proposal that employee stock options should be recognized as an expense was that it could

a. violate the historical cost principle.

b. violate the cost-benefit rule.

c. violate materiality concepts.

d. jeopardize compliance with contract terms and conditions.

 

3. As a result of the Revised Model Business Corporation Act, it may be fair to state that

a. the book value of owners' equity may not give an accurate picture of potentially legal distributions.

b. the book value of owners' equity gives an accurate picture of potentially legal distributions.

c. the book value of owners' equity never gives an accurate picture of potentially legal distributions.

d. the book value of assets gives an accurate picture of potentially legal distributions

 

 

4. The denominator used in the calculation of basic earnings per share is the

a. number of common shares outstanding at the end of the year.

b. number of preferred shares outstanding at the end of the year.

c. weighted average number of common shares outstanding during the year.

d. weighted average number of common shares and preferred shares outstanding during the year.

 

5. Which of the following is not typically disclosed in the financial statements regarding share repurchase programs?

a. The dollar amount of the board-approved share buyback.

b. The time period the repurchase program will be effective.

c. The dollar amount remaining under the share repurchase program.

d. The reason for the share repurchase program.

 

 

6. Using the same accounting methods to record and report similar events from period to period demonstrates:

A) faithful representation. 

B) consistency.

C) comparability.

D) neutrality.

 

7. The following data is for the Kris Company for 2018:Gain on sale of equipmentProceeds from sale of machinery Proceeds from sale of treasury stock The amount reported as net cash provided by financing activities is: 

A) $ 200,000.

B) $ 30,000.

C) $ 25,000.

D) $ 150,000.

 

8. Net property, plant and equipment are reported on the balance sheet at: 113) 

A) historical cost minus accumulated depreciation.

B) historical cost.

C) net realizable value.

D) current market value.

 

9. Properly prepared statements of cash flows:

A) are frequently used by investment analysts to cash flows from operations across two or more companies.

B) present depreciation as a subtraction from net income to arrive at a firm's cash flow from operations under the indirect method.

C) will show the change in cash during a period to be equal to the net income for the period.

D) include stock issued for cash as an investing activity.

 

10. The following information has been obtained from the Mastic Corporation: 152)550,000 shares of common stock were outstanding on January 1, 2018. Bonds convertible into 50,000 shares of common stock were issued on July 1, 2018; the bonds have been determined to be dilutive.36,000 shares of common stock were issued on November 1, 2018.24,000 shares of common stock were purchased on December 1, 2018.

What is the weighted average number of shares to be used in the calculation of diluted earnings per share for 2018?

A) 579,000 

B) 604,000 

C) 612,000 

D) 587,000