Unit 7 - Questions

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potential litigation for patent infringement would appear on a corporation's

footnotes

as a result of corporate transactions, a company's assets remain the same and its owners' equity decreases. which of the following statements is true?

total liabilities increase

when a corporation's accounting year ends on a date other than December 31, the company is using

a fiscal year

a company has filed for an initial public offering for its $10 par common stock. the IPO is priced at $35 per share. Where on the balance sheet is the extra $25 per share recorded?

capital surplus

a corporation calls in $5 million of its outstanding 6% bonds. the call price is 103. the effect on the balance sheet is all of the following except

current liabilities decrease

which of the following corporate actions will lead to an increase in a company's owners' equity?

issuing $10 million of 6% $100 par preferred stock


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