Vegan Company reported the following: Common stock, $5 par, 200,000 shares authorized, 50,000 shares issued and outstanding What is the effect of issuing 2,000 shares of common stock in exchange for land with valued by a realtor at $36,000 if the common stock sells for $12 per share and is regularly traded?
a. The Land account increases by $24,000.
b. Retained Earnings decreases by $10,000.
c. Common Stock increases by $36,000.
d. Additional Paid-in Capital - Common increases by $24,000.
a
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Answer the following statements true (T) or false (F)
1. A system cannot be overcome or broken into if its internal controls are properly designed and structured. 2. It is difficult and costly to plan controls that can prevent collusion. 3. Strict internal controls must be implemented, regardless of the cost. 4. Internal controls must always be judged in light of their costs versus their benefits. 5. Collusion involves two or more people working together to circumvent internal controls and defraud a company.
Ad hoc is a Latin word, meaning ________
A) out of chaos B) from one, many C) by that very act D) with respect to a specific purpose E) and the rest
Which of the following would a firm need to specify BEFORE deciding on its sales promotion objectives?
A. marketing objectives B. company objectives C. production objectives D. product objectives E. All these objectives would need to be specified beforehand.
Other things held constant, which of the following events would be most likely to encourage a firm to increase the amount of debt in its capital structure?
A. Its sales are projected to become less stable in the future. B. The bankruptcy laws are changed in a way that would make bankruptcy more costly to the firm and its stockholders. C. Management believes that the firm's stock is currently overvalued. D. The firm decides to automate its factory with specialized equipment and thus increase its use of operating leverage. E. The corporate tax rate is increased.