Which one of the following statements is false?
A) When stock is issued, legal capital is usually the total amount received.
B) Par value has no direct relationship to market value.
C) The accounting for stated value, no-par stock parallels accounting for par-value stock.
D) Capital shareholders have limited liability.
A
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A three-stage allocation process is used in activity-based costing systems.
Answer the following statement true (T) or false (F)
Which of the following are possible sources of abnormal earnings?
a. Recognizing the positive excess present value above the cost of a project on the balance sheet b. The use of current values in reporting marketable securities c. Conservative matching and recognition procedures under historical costing d. All of the above
Last year Kinslow Company's cash account increased by $16,000. Net cash flows from investing activities was ($39,000). Net cash flows from financing activities was $17,000. On the statement of cash flows, the net cash flows from operating activities was:
A) $(22,000). B) $38,000. C) $(6,000). D) $16,000.
Supplier power has increased because of the Internet for all the following reasons except
A. the process of disintermediation makes it possible for some suppliers to reach end users directly. B. software that links buyers to a supplier's website has created rapid, low-cost order capabilities. C. some suppliers have created web-based purchasing systems that encourage switching. D. the growth of new web-based businesses has created more outlets for suppliers to sell to.