Corporations sometimes distribute assets other than cash when paying a dividend. Which of the following is not true?
a. Such a dividend is known as a dividend in kind.
b. Such a dividend is never known as a property dividend.
c. The amount debited to Retained Earnings equals the fair value of the assets distributed.
d. When this fair value differs from the carrying value of the assets distributed, the firm recognizes a gain or loss in net income.
e. The accounting for property dividends resembles that for cash dividends, except that when the firm pays the dividend, it credits the asset given up, rather than Cash.
B
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Sony is promoting a special coupon and sale on its stereos. Retail stores that purchase at least 1,000 stereos during the next 30 days will receive an extra stereo, free, for each 50 they purchase over a 1,000 minimum. This is an example of a:
A) CMA B) calendar promotion C) corporate sales program D) premium or bonus pack
For the year ended December 31, Year 1, Carsem Company had cash collections from customers of $220,000, cash paid to employees of $32,000, cash paid to suppliers of $100,000, cash used to retire long-term bonds of $32,000, and cash payments for dividends of $20,000. Based on this information, what is the net cash provided from operating activities?
A. $68,000 B. $188,000 C. $120,000 D. $88,000
Items that can or will be turned into cash within a year are called ______________________________.
Fill in the blank(s) with the appropriate word(s).
[The following information applies to the questions displayed below.]On January 1, Year 1, Victor Company issued bonds with a $250,000 face value, a stated rate of interest of 6%, and a 5-year term to maturity. The bonds sold at 95. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.What is the carrying value of the bond liability at December 31, Year 3?
A. $237,500 B. $241,000 C. $242,500 D. $245,000