week 2 test - The professor has configured this test to...

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The professor has configured this test to allow students to review: Questions answered incorrectly. Questions answered correctly. Students answers. Correct answers. Question 1 [Question Bank ID: 87378] Question Bank ID: 87378 Question 1 Question Bank ID: 87378 Type: Multiple Choice Inclusion Level: Normal Subject Group Common Correct Which of the following features of preferred stock would most likely be opposed by common shareholders? SHOW ANSWERS >> << HIDE ANSWERS [Expand All] A Par or stated value Explanation: B Callable Explanation: C Redeemable Explanation: D Participating Explanation: Question 2 [Question Bank ID: 43348] Question Bank ID: 43348 Question 2 Question Bank ID: 43348 Type: Multiple Choice Inclusion Level: Normal Subject Group Common Correct 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 SHOW ANSWERS >> << HIDE ANSWERS [Expand All] A Compensation expense will be recognized in connection with the option plan
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Explanation: B No compensation expense will be recognized in connection with the option plan Explanation: C Deferred compensation will be recognized Explanation: D No paid-in capital from stock options will be recognized Explanation: Question 3 [Question Bank ID: 21051] Question Bank ID: 21051 Question 3 Question Bank ID: 21051 Type: Multiple Choice Inclusion Level: Normal Subject Group Common Correct Ellis Company has 1,000,000 shares of common stock authorized with a par value of $3 per share of which 600,000 shares are outstanding. Ellis authorized a stock dividend when the market value was $8 per share, entitling its stockholders to one additional share for each share held. The par value of the stock was not changed. Assuming the declaration is not recorded separately, what entry, if any, should Ellis make to record distribution of the stock dividend? SHOW ANSWERS >> << HIDE ANSWERS [Expand All] A Explanation: B Explanation: C Explanation: D Memorandum entry noting the number of additional shares issued as a dividend Explanation: Question 4 [Question Bank ID: 46003] Question Bank ID: 46003 Question 4 Question Bank ID: 46003 Type: Multiple Choice Inclusion Level: Normal Subject Group Common
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Correct At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the SHOW ANSWERS >> << HIDE ANSWERS [Expand All] A Declaration of a stock split Explanation: B Declaration of a stock dividend Explanation: C Purchase of treasury stock Explanation: D Payment in full of subscribed stock Explanation: Question 5 [Question Bank ID: 93754] Question Bank ID: 93754 Question 5 Question Bank ID: 93754 Type: Multiple Choice Inclusion Level: Normal Subject Group Common Correct Thomas Company reported the following for the year ended December 31, 2008 (all items are net of income taxes): Comprehensive income (loss) for the year ended December 31, 2008, would be SHOW ANSWERS >> << HIDE ANSWERS [Expand All] A ($74) Explanation: B $1,226 Explanation: C $1,426
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