1. In which section of the balance sheet would treasury stock be reported?
Fixed assets
Long-term liabilities
Stockholders' equity
Intangible assets
2. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
5,000
100,000
60,000
55,000
3. Payroll taxes levied against employees become liabilities the first of the following month.
at the time the liability for the employee's wages is paid.
when earned by the employee.
at the end of an accounting period.
4. What options does a business have when financing operations?
Debt financing
Equity financing
Asset financing
Both debt financing and equity financing
5. The liability for a dividend is recorded on which of the following dates?
The date of record
The date of payment
The date of announcement
The date of declaration
6. The primary purpose of a stock split is to
increase paid-in capital.
reduce the market price of the stock per share.
increase the market price of the stock per share.
increase retained earnings.
7. Current liabilities are
due but not receivable for more than one year.
due but not payable for more than one year.
due and receivable within one year.
due and payable within one year.
8. Where is interest expense listed on the income statement?
Other expense section
Cost of merchandise sold
Operating expenses
Interest expense is on the balance sheet, not the income statement.
9. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
5,000
35,000
45,000
55,000
10. An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee?
$798.85
$873.77
$953.16
$1,223.77