True or False: When stock is issued for more than its par value, the excess is considered to be an expense and should be reported on the income statement. Select one: True False
Q: In cost accounting stocks are valued at cost or market value whichever less is. Select One : a) True…
A: Cost - Cost is basically that amount which is spend on the manufacturing or production of goods.…
Q: A stock splita. has no effect on total stockholders’ equity.b. increases assets and stockholders’…
A: Answer: Option a
Q: WHICH STATEMENT IS FALSE? A. If the net income of prior period is overstated because of the change…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: A stock's capital gains are equal to its dividend divided by the stock price. OA. True OB. False
A: The required rate of return on a stock measures the rate of return desired by the investors in the…
Q: e stock is no-par stock that is assigned a “stated” value per share. True or False?
A: The Statement is true
Q: In cost accounting stocks are valued at cost or market value whichever less is. Select one: O True…
A: Inventory is the detailed list of items that are present on hand. It constitute of all the finished…
Q: s it true of false that stock sold for amounts in excess of par value results in a gain reported on…
A: A company issues its common stock at par value or at an amount more than the par value. The amount…
Q: When common stock is issued at an amount greater than par value, the difference between the par…
A: When common stock is issued for more than its par value, the difference between par value and…
Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…
A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…
Q: Lifo and weighted average methods are related to?
A: Answer: A. Inventory valuation
Q: hen treasury stock is sold for less than its cost, the entry should include a debit toa. Gain on…
A: When treasury stock is sold for less than its cost, then amount of cash received is debited, cost of…
Q: Which of the following statements is CORRECT? Group of answer choices The component cost of…
A: Retained earnings:Retained earnings refer to the percentage of net earnings not paid out as…
Q: When treasury stock is purchased for more than the par value of the stock and the cost method is…
A: Treasury stock means where the own stock has been repurchased by company from open market and can be…
Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…
A: Common stock: The common stock is considered as a security that signifies proprietorship in a…
Q: Which of the statements is NOT TRUE about the yield of a stock? a) It is comprised of dividend yield…
A: Capital Gain/Loss: It refers to the change in the value of an investment made by an individual or an…
Q: The cost of equity is easier to estimate than the cost of either debt or preferred stock. True…
A: WACC- Weighted average cost of capital (WACC) is the rate that a company is expected to pay on…
Q: When retiring treasury stock, retained earnings could be affected under which of the following…
A: Treasury stock means where the own stock has been repurchased by company from open market and can be…
Q: Share Capital and Retained Earnings are Equity accounts. Select one: True False
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: True or False: Dividends declared and paid result in a decrease to the common stock's account…
A:
Q: When the market value of a company’s portfolio of available-for-sale securities is lower than its…
A: Valuation allowance account - Contra asset to record "temporary" market changes in FV for HFT/AFS…
Q: The most difficult component cost of financing to measure is the cost of ________ a Preferred…
A: The component cost of financing for debt is interest.
Q: If the revenues are correctly reported and the gross profit of a company is understated, what is the…
A: There would be effect on the retained earnings on stockholders' equity if the gross profit is not…
Q: Common stock is typically stated at_ Select one: a. sale value. O b. par value c. Fair market value.…
A: Common stock is the type of ownership interest held by common stock holders who can vote on…
Q: When treasury stock accounted for by the cost method is subsequently sold for more than its purchase…
A: Treasury stock refers to the shares which were bought back by the issuing company which was…
Q: In the general dividend-valuation model, the price of a share of stock is the present value of all…
A: Current value of a share of stock is the present value of its cash flows. Cash flows, includes all…
Q: What is the inherent justification underlying the concept of potential ordinary shares or diluters…
A: Introduction:- The following Qualitative characteristics of accounting information as follows…
Q: cost of holding inventory *
A: 1st answer :- Cost of Debt 2nd answer :- Carrying cost
Q: how do I compute or calculate valuation and relative value measure to assses stock correctly?…
A: Valuation of a company can be done through either of the two methods, absolute valuation or relative…
Q: 1. Why is there a cost associated with retained earnings? 2. What is Coleman's estimated cost of…
A: Given: The firm tax rate is 25% The current price of coleman’s is 12% The current price of firm is…
Q: True or False? The Paid-in Capital, Treasury Stock account can have a zero or credit balance. True…
A: 1. The statement is True. The Paid-in Capital, Treasury Stock account can have a zero or credit…
Q: If common stock is issued at a price above par value, the transaction would be recorded as a. debit…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Which of the following is an appropriate presentation of treasury stock? O As a marketable security…
A: Treasury stock is the amount of shares repurchased by the company.
Q: Which of the statements below is false? If the net income of prior period is overstated because of…
A: 1. True. The effect would be deducted from the beginning retained earnings. 2. True. Prior period…
Q: When treasury stock is purchased for cash at more than its par value, what is the effect on total…
A: Answer) The correct answer in the given question is (b): Cost Method: DECREASE Par Value Method:…
Q: While comparing physical stock with the balance shown in the stock cards, surplus and deficiencies…
A: Stock discrepancies occur when the amount of stock reported in your company' records does not match…
Q: If a company has trading securities, it will report unrealized changes in their value only when…
A: Trading Securities:- Trading securities are investments in debt or equity that management plans to…
Q: If shares are issued for a non-cash asset, the share should be recorded at? a. Zero b. Fair…
A: Solution: If shares are issued for a non-cash asset, the share should be recorded at "Fair value"…
Q: which of the following balances can the paid in capital treasury stock account not have zero…
A: Paid in capital treasury stock account is opened when a company sells it's treasury shares over…
Q: The Valuation Principle states that the value of a stock is equal to the present value (PV) of both…
A: The value of share is much similar to the value of bond. In both future cash flows are discounted…
Q: Treasury stock a. Has a normal credit balance. b. Decreases stockholders’ equity.c. Is recorded as…
A: Treasury stock is the company's own stock which is reacquired by the Company and shown under equity…
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- In cost accounting stocks are valued at cost or market value whichever less is. Select one: O True FalseThe expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capitala. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio is normally higher? Why?
- In cost accounting stocks are valued at cost or market value whichever less is. Select One : a) True b) FalseWhen treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for the excess of the cost the selling price but not to exceed the credit balance. True or False True FalseTrue or False: Dividends declared and paid result in a decrease to the common stock's account balance. Select one: True False
- c) Calculate the covariance for the above stockNote: No need excel formulaQ.7(a): What are extraordinary items? How are they shown on the income statement? Q.7(b): Give three examples of unusual or infrequent items that are disclosed separately. Define Stock Spilt.Which of the following statements is false? a. the common stock account has a credit balance. b. the additional paid-in capital account has a credit balance. c. common stock may be issued for more than par value. d. the par value of common stock represents the stock's market value.
- The Valuation Principle states that the value of a stock is equal to the present value (PV) of both the dividends and future sale price of that stock which the investor will receive. True Falsehen treasury stock is sold for less than its cost, the entry should include a debit toa. Gain on Sale of Treasury Stock.b. Loss on Sale of Treasury Stock.c. Retained Earnings.d. Paid-in Capital in Excess of ParWhich of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these