Changes in retained earnings are commonly reported in the:
A. Single-step income statement.
B. Multiple-step income statement.
C. Statement of stockholders' equity.
D. Statement of cash flows.
E. Balance sheet.
Answer: C
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Charlene, Derwood, and Elwyn form a partnership. They make no express agreement concerning how profits are to be divided. Of the $30,000 initial capital of the firm, Charlene and Derwood each contributed $12,000. Elwyn contributed $6,000. The partnership had a profit of $15,000 during the first year of operation of the business. Given this information, Derwood's share of the profit will be ________.
A. $10,000 B. $6,000 C. $5,000 D. $12,000
On January 1, 20X2, Pint Corporation acquired 80 percent of Size Corporation for $200,000 cash. Size reported net income of $25,000 each year and dividends of $5,000 each year for 20X2, 20X3, and 20X4. On January 1, 20X2, Size reported common stock outstanding of $160,000 and retained earnings of $40,000, and the fair value of the noncontrolling interest was $50,000. It held land with a book value of $90,000 and a market value of $100,000, and equipment with a book value of $40,000 and a market value of $48,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of eight years. All depreciable assets held by Size at the date of acquisition had a remaining economic life of
eight years. Pint uses the equity method in accounting for its investment in Size.Based on the preceding information, the increase in the fair value of patents held by Size is A. $18,000 B. $32,000 C. $10,000 D. $50,000
Which type of health insurance is provided by an organization that owns two hospitals and seven clinics, and the insured must receive services from those organizations?
a. fee-for-service insurance b. a health maintenance organization (HMO) c. universal insurance d. Medicare e. preferred provider organization (PPO)
In the continuum of leadership behavior, ____ leadership represents a manager who simply makes a decision and announces it.
a. Boss-centered b. Task-centered c. Subordinate-centered d. Employee-centered