YUH YUH

When a corporation declares a cash dividend, which of the following is true

stockholders' equity decreases

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses

the indirect method

What will be the increase in the Paid-In Capital in excess of par account if a corporation issues 20,000 shares of $1.00 par common stock for $6 per share

$100,000

Jay has made a deal with the daughter to start a car fund for when she graduates college in 6 years. He has found an investment that will yield an interest rate of 8% per year. If he wants to have $25,000 to spend on the car for his daughter, how much must he initially invest

$15,754.28

On January 1, 2019, a company issued 10,000 shares of 10%, $10 par value of cumulative preferred stock, No dividends were declared in 2019 or 2020, the company declared a dividend of $200,000. How much of the 2021 dividend should be paid to common stockholders

$170,000

What is the interest rate of a single $20,000 cash flow in 3 years if the present value is $15,433.60

9%

Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding

95,000

Morrins Plumbing Company: What amount would be reported in the operating activities section of the statement of cash flows for Collections from Customers under the direct method, assuming that all sales are on credit

975,000

The statement of cash flows

Along with the balance sheet and statement of retained earnings is dated as of a specific year end date

Cash flows form issuing and repurchasing stock or issuing and repaying debt are classified as

Financing activities

A company acquired land by issuing its common stock. How should this transaction be disclosed when a statement of cash flows is prepared

In a supplemental schedule of noncash investing and financing activities or in a note

Par value represents the

arbitrary amount that establishes a min price for the stock when it is first issued

Long-term debt generally includes

obligations that extend beyond one year

What types of accounts are Treasury Stock and Paid-In Capital from Treasury Stock Transactions

contra equity; contra equity

Common stock usually has all of the following features except

conversion privilege

Earnings per share is an indication of how much

earnings the company has for each each share of outstanding common stock

When bonds are issued by a company, the accounting entry shows an

increase in assets and increase in liabilities

Refer to Ladder Distributors, HOw much should be reported on the company's March 31, 2020, balance sheet for treasury stock?

$200,000

Tom liquidates an investment, and his proceeds will be received in 8 annual payments of $10,000 each with interest computed at 7%. What is the Present Value of this Annuity

$59,713

A graphics design company issued bonds in the amount of $1,000,000 with a stated interest rate of 8%. If the interest is paid semiannually and the bonds are due in 10 years, what would be the total amount of interest paid over the life of the bonds

$800,000

Refer to Labor Finders, Inc. The company's 2020 earnings per share is reported as

1.20

Refer to the information presented above for La Paz Restaurants. The 2020 dividend yield ratio is reported as

1.25%

The primary purpose of the statement of cash flows is to provide information about

The cash inflows and outflows of the company

The current portion of long-term debt would appear on the balance sheet as

current liability

Authorized stock represents the

maximum number of shares that can be issued for each class of stock

When a contract establishes a relationship between an amount borrowed and one or more future cash flows, the initial amount is known as

present value

The bond issue price is determined by calculating the

present value of the stream of interest payments and the present value of the maturity amount

A bond issuing 101.25 means that the bond

sold for $1012.50

If the stated interest is 12% per year, but it is compounded semiannually, then the adjusted rate used for present or future value calculations will be

3.6% per 6-month period

After a corporation declares a cash dividend, what takes place on the date of record

no entry is necessary

The discount on Bonds Payable account is shown on the balance sheet as

A long-term liability

When determining the amount of interest to be paid on a bond, which of the following information is necessary

The stated rate of interest on the bonds

Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared

in a note to the financial statements or in a supplemental schedule

If bonds were initially issued at a discount, the carrying value of the bonds on the issuer's books will

increase as the bonds approach their maturity date

The Kaplan Group sold $200,000 of 10-year bonds for $190,000. The face rate on the bonds was 8% and interest is paid annually on December 31. What entry would be made on December 31 when the interest is paid? (Numbers are omitted)

interest expense Discount on bonds payable cash

Cash flows from acquiring and disposing of long-term assets are classified as

investing activities

Bonds sell at a premium when the

market rate of interest is less than the stated interest rate at the time of issuance

Treasury shares represent the

number of previously issued shares that have been repurchased by the corporation

Outstanding shares represent the

number of shares that are currently held by stockholders

When bonds are sold for less than the par amount, this means that the

stated rate of interest is less than the yield rate of interest