ACC 423 Final Exam

Preview (7 of 21 Pages)

100%

Purchase to unlock

ACC 423 Final Exam - Page 1 preview image

Loading page ...

ACC 423 Final Exam1) Proceeds from an issue of debt securities having stock warrants shouldNOT be allocated between debt and equity features whenA. the allocation would result in a discount on the debt securityB. the warrants issued with the debtsecurities are nondetachableC. exercise of the warrants within the next few fiscal periods seems remoteD. the market value of the warrants is NOT readily available2) The conversion of preferred stock may be recorded by theA. market value methodB. par value methodC. book value methodD. incremental method3) The conversion of preferred stock into common stock requires that anyexcess of the par value of the common shares issued over the carryingamount of the preferred being converted should beA. treated as a prior period adjustmentB. treated as a direct reduction of retained earningsC. reflected currently in income as an extraordinary itemD. reflected currently in income, but NOT as an extraordinary item4) A primary source of stockholders’ equity isA. contributions by stockholdersB. both income retained by the corporation and contributions bystockholdersC. appropriated retained earningsD. income retained by the corporation5) Stockholders’ equity is generally classified into two major categories:A. retained earnings and unappropriated capitalB. earned capital and contributed capitalC. appropriated capital and retained earningsD. contributed capital and appropriated capital6) When a corporation issues its capital stock in payment for services, theleast appropriate basis for recording the transaction is theA. market value of the shares issuedB. Any of these provides an appropriate basis for recording the transactionC. par value of the shares issuedD. market value of the services received7) Treasury shares areA. shares held as an investment by the treasurer of the corporationB. issued but NOT outstanding sharesC. shares held as an investment of the corporationD. issued and outstanding shares8) “Gains” on sales of treasury stock (using the cost method) should becredited toA. paid-in capital from treasury stockB. other income

Preview Mode

This document has 21 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Sarbanes Oxley Act, GAAP and IFRS

Team A Week 5 Problems

Accounting Audit Final Exam MCQs 2015

Understanding Internal Control and Audit Processes

Government wide statements and Fund statements

Changing the Accounting Information System

IFRS or US GAAP Which is the Best Reporting Standard

Company

Explore

Study Tools