Answer the following statements true (T) or false (F)
1. The statement of stockholders' equity has less information than the statement of retained earnings.
2. The statement of stockholders' equity has more information than the statement of retained earnings
because it reports the changes in all stockholders' equity accounts.
3. The statement of stockholders' equity reports the number of shares and any changes during the year in
preferred, common, and treasury stock.
4. The statement of stockholders' equity does not show the changes to the Retained Earnings account
because that information is provided in the statement of retained earnings.
5. To compare companies of different sizes, investors need some standard profitability ratios.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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On December 1, 20X8, Winston Corporation acquired 10 deep discount bonds from Linked Corporation at a cost of $400 per bond. Winston classifies them as available-for-sale securities. On this same date, it decides to hedge against a possible decline in the value of the securities by purchasing, at a cost of $250, an at-the-money put option to sell the 10 bonds at $400 per bond. The option expires on February 20, 20X9. Selected information concerning the fair values of the investment and the options follow: December 1, December 31, February 20, 20X8 20X8 20X9Linked Corporation Per Bond: $400 ? ? Put Option (100 shares) Market Value $250 $400 $400 Intrinsic Value 0 ? 400 Time
Value $250 $100 ? Assume that Winston exercises the put option and sells Linked bonds on February 20, 20X9.Based on the preceding information, which of the following journal entries will be made on February 20, 20X9? A.Cash4,000 Available-for-Sale Securities 4,000B.Cash4,000 Put Option 400 Available-for-Sale Securities 3,600C.Loss on Hedge Activity150 Put Option 150D.Loss on Hedge Activity400 Available-for-Sale Securities 400 A. Option A B. Option B C. Option C D. Option D
Restaurants are often quite theatrical in their use of physical evidence (such as furnishing, décor, uniforms, lighting, and table settings)
Indicate whether the statement is true or false
Who does the CSO report to in the organization?
A. The Chief Information Officer (CIO) B. The Board of Directors C. The Chief Information Officer (CEO). D. Directly to the consumer E. The Chief Information Security Office (CISO)
Which of the following is not a suggested tip for making investment decisions?
A. Do your homework about potential investments. B. Keep copies of materials used to make investment decisions. C. Monitor the value of your investments. D. Keep accurate records. E. Choose the least expensive online broker for stock purchases.