A firm has prepared the coming year's pro forma balance sheet resulting in a plug figure in a preliminary statement—called the external financing required—of $230,000. The firm should prepare to ________
A) repurchase common stock totaling $230,000
B) arrange for a loan of $230,000
C) do nothing; the balance sheet balances
D) invest in marketable securities totaling $230,000
B
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The Clementine Company agreed to purchase the Orange Company for $650,000. At the date of purchase, Orange had current assets with a fair market value of $400,000, noncurrent assets (including no marketable securities) with a fair market value of $700,000, and liabilities of $500,000. In accounting for this transaction, Clementine should
A) record noncurrent assets at $650,000. B) record a debit of $50,000 as a loss on the purchase. C) record goodwill of $50,000 to be reviewed annually for impairment. D) record current assets at $550,000.
Which of the following variances is generally not reported as being favorable or unfavorable?
A) Variable overhead efficiency variance B) Direct labor rate variance C) Fixed overhead volume variance D) Direct materials usage variance
ABC stock expects to earn $3.00 a share next year and pay a cash dividend of $2.00 a share. If the stock is selling for $20.00 a share, its current return is
A) 15%. B) 10%. C) 25%. D) 5%.
In Skype, ________ is the process where a Skype application looks up the username and IP address of the party it wants to contact
A) login B) directory search C) transport D) signaling