Question : 61. Which of the following statements regarding earnings per share false? A. It : 1228513

61. Which of the following statements regarding earnings per share is false? 
A. It can be reported on the income statement.
B. It increases when net income increases.
C. It is based on the average number of common shares outstanding.
D. It would not be affected by an extraordinary loss.

62. Which of the following would not typically be disclosed in the notes to the financial statements? 
A. Additional detail regarding reported numbers.
B. A summary of significant accounting policies.
C. Revenues reported by business segments.
D. The net income earned by the business to date.

63. Which of the following statements is false? 
A. Relevant information has the ability to influence an investor’s decision.
B. Reliable information is accurate, verifiable and unbiased.
C. Consistency refers to the use of the same accounting principles from one period to the next.
D. Comparability refers to the use of conservatism within different time periods by a particular business.

64. In which of the following classifications would cash dividend payments to stockholders be reported? 
A. Operating activities
B. Financing activities
C. Investing activities
D. Stockholder activities

65. A company issued 1,000 shares of $10 par value common stock in exchange for $15,000. Which of the following correctly describes the impact of this transaction on the financial statements? 
A. A $15,000 gain is reported on the income statement.
B. Contributed capital in the amount of $10,000 is reported on the balance sheet.
C. Common stock is reported on the balance sheet at $15,000.
D. Additional paid-in capital of $5,000 is reported on the balance sheet.

66. Where are stock issues in exchange for cash reported on a statement of cash flows? 
A. Operating activities
B. Financing activities
C. Investing activities
D. Stockholder activities

67. Where are acquisitions of previously issued stock for cash reported on a statement of cash flows? 
A. Operating activities
B. Financing activities
C. Investing activities
D. Stockholder activities

68. Which of the following statements is false when a company sells inventory costing $700 for $1,200? 
A. Cost of goods sold increases $700.
B. Gross profit increases $500.
C. Stockholders’ equity increases $500.
D. Net sales increases $500.

69. Which of the following statements is false when a company sells inventory costing $900 for $1,500 cash? 
A. Current assets increase $600.
B. Gross profit increases $1,500.
C. Stockholders’ equity increases $600.
D. Net sales increases $1,500.

70. Superior has provided the following information for its recent year of operation:
? The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
? The additional paid-in capital account balance increased $2,500 during the year.
? The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
? Net income was $26,000.
How much were Superior’s dividend declarations during its recent year of operation? 
A. $10,000.
B. $42,000.
C. $26,000.
D. The dividend declarations can’t be determined given the above information.