ACC-302-Ch-11-quiz

ACC-302-Ch-11-quiz - ACC 302 Chapter 11 Multiple Choice...

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ACC 302 Chapter 11 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following features of preferred stock would most likely be opposed by common shareholders? a. Par or stated value. b. Callable. c. Redeemable. d. Participating. ____ 2. The exercise price and market price of stock under a fixed compensatory stock option plan are equal on the grant date. The fair value of the options is greater than the option price. Under the fair value method a. Compensation expense will be recognized in connection with the option plan. b. No compensation expense will be recognized in connection with the option plan. c. Deferred compensation will be recognized. d. No paid-in capital from stock options will be recognized. ____ 3. Current financial accounting standards require a. the use of the fair value method, but not the intrinsic value method. b. the use of the fair value method and the intrinsic value method to account for each plan. c. disclosure in the notes to the financial statements of compensation expense under the fair value method if the intrinsic value method is used. d. disclosure in the notes to the financial statements of compensation expense under the in- trinsic value method if the fair value method is used. ____ 4. Which of the following is least likely to affect the retained earnings balance? a. Conversion of preferred stock into common stock. b. Stock splits. c. Treasury stock transactions. d. Stock dividends. ____ 5. Which of the following is not a component of comprehensive income? a. Asset revaluation reserve. b. Net income. c. Foreign currency translation adjustment. d. Minimum pension liability adjustment. ____ 6. The par value of common stock represents a. the liquidation value of the stock. b.
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ACC-302-Ch-11-quiz - ACC 302 Chapter 11 Multiple Choice...

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