Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on May 1 for $5,000. On July 1, it reissued 50 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?
A. $2,600 Debit.
B. $2,600 Credit.
C. $50 Credit.
D. $100 Credit.
E. $50 Debit.
Answer: C
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The economic profit generated by a company is its ________
A) (capital x cost of capital) / net profit B) net profit / (capital x cost of capital) C) net profit + (capital x cost of capital) D) net profit - (capital x cost of capital) E) (capital x cost of capital) - net profit
Harry, Tony, and Liza run a partnership firm. In the process of liquidation, the partnership sells non- cash assets, having a book value of $78,000, for $86,000. Which of the following is TRUE of the journal entries?
A) Cash will be credited by $8000. B) Non-cash assets will be credited for $86,000. C) Cash will be credited for $78,000. D) Non-cash assets will be credited for $78,000.
"This is the third time that our business unit has been sold in the past five years," said Bobbi. "Each time, our managers lose their jobs, and workers like us have to learn to work under new managers and new systems. Our business unit has been just a minor piece of several large diversified companies, and our performance has been compared to other business units' performance in these companies. As a result, we have been repeatedly bought and sold based on market controls, and employees often ________ as a result."
A. suffer B. grieve C. thrive D. benefit E. surrender
Robert wants to start an independent recording studio. In order to finance his start-up, Robert seeks help from Esther, a successful business magnate. Esther agrees to fund Robert's venture as long as she receives a 20% share of the profits made by Robert. In the given scenario, Robert receives the financial resources to start his business:
A. from a venture capital firm. B. through crowdfunding. C. though a commercial loan. D. from an angel investor.