Julia owns 1,000 shares of Orange Corporation. This year, Orange declared a 10% stock dividend. There was no option for shareholders to receive cash. When Julia received 100 shares of Orange stock, it had a fair market value of $50 a share. How much income does Julia have from the dividend?
A. $50,000
B. $50
C. $5,000
D. $0
Answer: D
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Why do vendors encourage retailers to sell at MSRP?
A. To promote national brands as quality brands B. To avoid markdowns C. To drive competitive retailers out of business D. To secure a profit E. To reduce retail price competition among retailers
Who evaluates the accounting system, including its ability to record transactions properly and its operational effectiveness, and also determines whether the financial reports prepared conform to the requirements of the applicable authoritative guidance?
a. management b. general counsel c. independent auditor d. financial vice-president e. controller
Which of the following terms is correctly paired with its description?
A. supply warehouses: part of a manufacturing plant and used for long-term storage B. cross-docking warehouses: typically used for storing finished goods for a short period of time before they are sorted and shipped to their destinations. C. retail warehouses: storage from which sales to end consumers can be made D. intermodal warehouses: typically used for storing finished goods between two different modes of transportation
Nelson Corporation is required to record an inventory write-down of $2,500 as a result of using the lower-of-cost-or-market rule. Which of the following shows how this entry would affect the financial statements? Assets=Lia.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.(2,500) NA (2,500)NA 2,500 (2,500)NAB.(2,500) (2,500) NANA NA NANAC.NA (2,500) 2,5002,500 NA 2,500NAD.(2,500) NA (2,500)NA 2,500 (2,500)(2,500)
A. Option A B. Option B C. Option C D. Option D