Answer the following statements true (T) or false (F)
1. A company made an error in recording the Year 1 purchase of computer equipment as an expense. This was discovered in Year 2. The item should be reported as a prior period
adjustment on the Year 2 income statement.
2. Changes in accounting estimates are accounted for in current and future periods.
3. Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average) common stock.
4. If a company has no preferred stock, basic earnings per share is equal to net income divided by the number of weighted average common shares outstanding.
5. If a company has noncumulative preferred stock, basic earnings per share is equal to net income less preferred dividends declared divided by the number of weighted average common shares outstanding.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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On January 1, Year 1, Charlotte Curtis started Curtis Company as a sole proprietorship with an initial investment of $80,000. During Year 1, the business earned $60,000 in cash revenue and paid $45,000 in cash expenses. During Year 1, Ms. Curtis withdrew $7,000 for her personal use. Required: Using the above information, prepare an income statement, a capital statement, and a balance sheet for the Curtis Company.
What will be an ideal response?
The 2002 law that established the Public Company Accounting Oversight Board (PCAOB) was called ________
A) the McCain-Feingold Act B) the Harkins-Oxley Act C) the Sarbanes-Harkins Act D) the Sarbanes-Oxley Act
Which of the following are key requirements for a successful strategic plan?
A) Resources similar to your competitor B) Dynamic capabilities C) Fit with the current environment D) All of the above E) Only B and C above
The integrity constraint that specifies that the value (or existence) of an attribute in one relation depends on the value (or existence) of the same attribute in another relation is called:
A) foreign integrity. B) attribute integrity. C) referential integrity. D) dependence integrity. E) join integrity.