Distinguishing a stock dividend from a stock split can sometimes cause difficulties. Usually firms treat small-percentage distributions, say less than a _____ increase in the number of shares, as stock dividends and larger ones as stock splits
a. 5%
b. 10%
c. 25%
d. 50%
e. 100%
C
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If the happening of a condition discharges an existing duty to perform, this is called a condition precedent.
Answer the following statement true (T) or false (F)
Which of the following items on the income statement is not disclosed net of tax?
a. Unusual or infrequent item disclosed separately b. Discontinued operations c. Extraordinary loss d. Cumulative effect of change in accounting principle e. Unusual or infrequent item disclosed separately and discontinued operations are both not disclosed net of tax
How does pull-through production help minimize inventories in a just-in-time operating environment?
a. Products are made in anticipation of customer demand. b. Products are made only when customer orders are received. c. Products are made in large production runs. d. Products are made identically.
Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.
Answer the following statement true (T) or false (F)