On your first audit for Stark Company, you learn that the company declared a 15% stock dividend during the last quarter of the year. Identify the evidence you would examine to determine whether the stock dividend was accounted for properly
Stark Company's 15% stock dividend should be accounted for as a debit to retained earnings for the fair market value of the dividend and credited to capital stock and capital in excess of par. The auditor should be sure the board of directors authorized the dividend through review of the board minutes and should examine The Wall Street Journal or another financial reporting service to determine the fair market value of the dividend at the time of declaration. The auditor could then trace the amounts to their recording in the general ledger to determine if they were properly accounted for.
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As a salesperson, you should know that the purpose of the negotiation close is to:
A. get the prospect to reveal true objections. B. overcome a prospect's practical and psychological objections. C. make prospects think their haggling has succeeded. D. find ways for both parties to have a fair deal. E. determine who gets the better end of the deal.
In a comparative negligence state, if the plaintiff in a negligence lawsuit is found to be 30 percent negligent, the plaintiff would recover
a. 70 percent of the damages. b. all of the damages. c. none of the damages. d. 30 percent of the damages.
Which of the segmentation attractiveness criteria is addressed when Magnolia Pizzeria asks the question, "Are private food service companies allowed to deliver pizzas on the military base?"
What will be an ideal response?
Which of the following is a major reason why corporate ownership is popular in the United States?
A) Stockholders have limited liability for the debts of the corporation. B) Most corporations are small- or medium-sized. C) The life of a corporation is limited by the death of the owner. D) A corporation is usually managed by the owners.