Voiles Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for $35 per share. Select the answer that accurately reflects how the reissue of the treasury stock would affect the elements of Voiles' financial statements. Assets=Liab.+Stk. EquityRev.?Exp.=Net IncStmt. ofCash Flows Pd-in Cap TS?Treas. Stk. A.7,000=NA+2,000?(5,000)NA?NA=NA7.000 FAB.7,000=NA+2,000?5,000NA?NA=NA7,000 FAC.7,000=NA+7,000?NANA?NA=NA7,000 FAD.5,000=NA+5,000?NANA?NA=NA5,000 FA
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
You might also like to view...
U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions. Which of the following is/are true?
a. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits. b. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits. c. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives. d. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method. e. all of the above
An integrated organizational structure that has few or no levels of intervening management best defines
A) flat structure. B) functional structure. C) virtual structure. D) matrix structure.
One way a firm can reduce the amount of cash it needs in any month is to ________
A) slow down the payment of receivables B) delay the payment of wages C) accrue taxes D) speed up payment of accounts payable
San Marco has a $4,000,000 asset investment and is subject to a 30% income tax rate. Cash inflows are expected to average $600,000 before tax over the next few years; in contrast, average income before tax is anticipated to be $500,000. The company's after-tax accounting rate of return is:
A. 8.75%. B. 15.00%. C. 10.50%. D. 12.50%. E. None of the answers is correct.