When preparing pro forma financial statement, the income statement must be prepared first
because the projected retained earnings balance on the balance sheet is based on the expected net
income.
Indicate whether the statement is true or false
TRUE
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A small group of Alonzo’s classmates have treated him differently that other classmates, sending him messages that suggest that he is irrelevant. These messages are a form of which of the following?
A. positive Pygmalion B. confirmation C. expected self D. disconfirmation
Which of the following types of marketing intermediaries assumes the selling responsibility for a business and receives a commission when a sale occurs, as part of a direct channel system?
A) retailers B) brokers C) wholesalers D) commercial distributors E) dealers
GATT 1947 applied to:
a. trade in goods. b. trade in services. c. trade in textiles. d. All of the above
Buddy owns 100 of the outstanding shares of Binder Corporation stock. Buddy's basis in his Binder Corporation stock is $100,000. Binder Corporation is merged with Clipper Corporation in a tax-free reorganization. Buddy receives 50 shares of Clipper stock worth $150,000 and $150,000 cash. The remaining 100 shares of Binder stock were owned by Bruce who received the same consideration for his Binder stock. Binder and Clipper have E&P balances of $250,000 and $500,000, respectively. Buddy and Bruce each own 25% of Clipper Corporation's 200 shares of stock after the reorganization. Which of the following is correct?
A. Buddy recognizes $200,000 as dividend income. B. Buddy recognizes $150,000 as dividend income. C. Buddy recognizes $150,000 as a capital gain. D. Buddy recognizes $200,000 as a capital gain.