Question :
111. For the year that just ended, a company reports net : 1234215
111. For the year that just ended, a company reports net income of $360,000. There are 500,000 shares authorized 100,000 issued, and 80,000 shares of common stock outstanding. What is the earnings per share?
A. $3.60
B. $4.00
C. $4.50
D. $4.00
112. Which of the following would be considered an “Other Comprehensive Income” item?
A. net income.
B. extraordinary loss related to flood.
C. gain on disposal of discontinued operations.
D. unrealized loss on available-for-sale securities.
113. Which of the following is not a part of comprehensive income?
A. foreign currency items
B. restructuring charges
C. unrealized gains and losses
D. pension liability adjustments
114. Companies may report comprehensive income on each of the statements below except
A. income statement
B. separate statement of comprehensive income
C. statement of stockholders’ equity
D. statement of retained earnings
115. Which of the following investments below should be accounted for by using the cost method?
A. temporary investments in stock
B. long-term investments in stock where the investor does not have a significant influence over the investee
C. long-term investments in stock where the investor does have significant influence over the investee
D. temporary investments in stock and long-term investments in stock where the investor does not have a significant influence over the investee
116. Which of the following statements below is not a reason a company may purchase another company’s stock?
A. earning a return on excess cash
B. buoying up the other company’s stock price
C. gaining control of another company’s operations
D. developing or maintaining business relationships
117. The cost method of accounting for investments
A. requires the investment to be reported at its market value
B. requires the investment to be reported at its original cost in the balance sheet
C. requires the investment be increased by the reported net income of the investee
D. requires the investment be decreased by the reported net income of the investee
118. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?
A. $12,750 gain
B. $600 gain
C. $600 loss
D. $9,250 loss
119. During the current year, the North Company purchased 200 shares of in the South Company for $12,000 as a temporary investment. At the end of the year, the market value of the stock was $10,000. The North company’s financial statements for the current year should show
A. a loss of $2,000 on the income statement and temporary investments of $12,000 on the balance sheet
B. no loss on the income statement and temporary investments of $12,000 on the balance sheet
C. a gain of $2,000 on the income statement and temporary investments of $10,000 on the balance sheet
D. a loss of $2,000 on the income statement and temporary investments of $10,000 on the balance sheet
120. The account Unrealized Loss on Temporary Investments in Stock should be included in the
A. Income statement
B. Balance sheet as an addition to Temporary Investments in Stock
C. Balance sheet as a deduction in Stockholders’ Equity
D. Statement of Retained Earnings
