ACIS_2115_Quiz_9

ACIS_2115_Quiz_9 - 5 shares remain in treasury a.190 b.195...

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ACIS 2115 Quiz 9 Use the following information to answer the next three questions. The Kramer Company was started when it issued 200 shares of $5 par value common stock at a market price of $20 per share. The company repurchased 10 shares at a market price of $15 per share. Later, the company reissued 5 shares at a market price of $10 per share. 1. The entry to record the purchase of the 10 shares of the company’s own stock would a.decrease assets / decrease equity. b.decrease assets / increase equity. c.decrease assets / increase treasury stock. d.both a and c. e.both b and c. 2. The entry to record the re-issuance of the 5 shares of the company’s own stock would a.Decrease the treasury stock account by $50. b.Decrease net income by $25. c.Decrease retained earnings by $25. d.Decrease additional paid-in capital by $50. e.Both a and b. f. Both c and d. 3. After the 5 shares are reissued for $10 per share, how many total shares are issued? (Note:
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Unformatted text preview: 5 shares remain in treasury.) a.190. b.195. c.200. d.none of the above. 4. A cash payment made for interest is classified as: a.an operating activity on the statement of cash flows b.an investing activity on the statement of cash flows. c.a financing activity on the statement of cash flows. d.cannot be determined without additional information. 5. Watson Company has a beginning and ending accounts payable balance of $800 and $900, respectively. If Watson Company uses the indirect method of preparing the Statement of Cash Flows, the change in the accounts payable balance would: a.not be reported on the Statement of Cash Flows. b.be shown as a financing activity. c.be shown as a subtraction from net income in order to determine cash flows from operating activities. d.be shown as an addition to net income in order to determine cash flows from operating activities....
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This note was uploaded on 04/01/2008 for the course ACIS 2115 taught by Professor Jayardley during the Spring '07 term at Virginia Tech.

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