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Using Financial Accounting Information The Alternative To Debits And Credits 10th Edition By Gary – Test Bank
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Using Financial Accounting Information The Alternative To Debits And Credits 10th Edition By Gary – Test Bank

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Edition: 10th Edition

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Using Financial Accounting Information The Alternative To Debits And Credits 10th Edition By Gary – Test Bank

True / False

1. Under IFRS, an item such as a convertible bond must be separated into two parts, showing one part in the Liability category and the other part in the Stockholders’ Equity category.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
REFERENCES: pp. 502-505
LEARNING OBJECTIVES: FACC.PONO.18.11-01 – LO: 11-01
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

2. All issued stock is outstanding.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
REFERENCES: pp. 502-505
LEARNING OBJECTIVES: FACC.PONO.18.11-01 – LO: 11-01
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

3. Stockholders’ equity is composed of three parts: contributed capital, earnings retained in the business, and dividends paid.
a. True
b. False
ANSWER: False
DIFFICULTY: Moderate
REFERENCES: pp. 502-505
LEARNING OBJECTIVES: FACC.PONO.18.11-01 – LO: 11-01
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

4. The participating feature of stock allows stockholders to sell stock back to the company.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
REFERENCES: pp. 505-506
LEARNING OBJECTIVES: FACC.PONO.18.11-02 – LO: 11-02
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

5. Preferred stock receives first preference on voting rights.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
REFERENCES: pp. 505-506
LEARNING OBJECTIVES: FACC.PONO.18.11-02 – LO: 11-02
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

6. The cumulative feature of stock allows the firm to eliminate a class of stock by paying the stockholders a specified amount.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
REFERENCES: pp. 505-506
LEARNING OBJECTIVES: FACC.PONO.18.11-02 – LO: 11-02
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

7. When stock is issued for cash, only the par value of the stock should be reported in the Stock account.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
REFERENCES: pp. 506-507
LEARNING OBJECTIVES: FACC.PONO.18.11-03 – LO: 11-03
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

8. When stock is issued for a noncash asset, the par value of the stock is the best indicator of the value of the asset.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
REFERENCES: pp. 506-507
LEARNING OBJECTIVES: FACC.PONO.18.11-03 – LO: 11-03
NATIONAL STANDARDS: United States – BUSPROG: Analytic
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Measurement
KEYWORDS: Bloom’s: Remembering

9. Treasury stock is stock that has been issued, but not currently outstanding.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
REFERENCES: pp. 507-510
LEARNING OBJECTIVES: FACC.PONO.18.11-04 – LO: 11-04
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

10. When treasury stock is reissued and the cost is less than the reissue price, the difference increases additional paid-in capital.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
REFERENCES: pp. 507-510
LEARNING OBJECTIVES: FACC.PONO.18.11-04 – LO: 11-04
NATIONAL STANDARDS: United States – BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-20-Accounting for Corporations
AICPA: FN-Reporting
KEYWORDS: Bloom’s: Remembering

 

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