If a company has both common and preferred shares outstanding and wishes to calculate book value per share,
a. net assets must be divided by the total number of both classes of stock.
b. net assets, less the redemption value of the preferred stock, must be divided by the number of shares of common stock outstanding.
c. stockholders' equity must be divided by the total number of both classes of stock.
d. stockholders' equity, less the cost of treasury shares held, must be divided by the number of common shares outstanding.
b
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In the rare instance when a par value stock is issued at a cash price below par, the excess of the par value over the amount of cash received should be
a. credited to a liability account. b. debited to the Retained Earnings account. c. debited to an account titled Discount on Capital Stock. d. credited to the Retained Earnings account.
Widgeon Co manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour. What is the contribution
margin per machine hour for Tales? A) $7 B) $5 C) $28 D) $35
A hardware store decides to place bins near the store entrances for customers to leave used (burned-out) light bulbs. The store is likely concerned with which element of sustainability?
a. Product rebates b. Product disposal c. Design for manufacture and assembly d. Design for environment
Donald likes to hold power but does not tend to use that power unless he is given a reason to do so. Donald is an example of a:
a. dormant stakeholder b. discretionary stakeholder c. demanding stakeholder d. dominant stakeholder