Which one of the following items does not accurately describe stockholders' equity?
a. Stockholders' equity is created when a company issues stock to an investor.
b. Total stockholders' equity should be equal to Assets in an publicly held entity.
c. Stockholders' equity represents amounts contributed by the owners to the company.
d. As owners of shares in a corporation, stockholders have claims on the assets of a business when it is profitable.
b
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Use the following information to answer the question below. When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1 . The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000
bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2 . The company issued 8,000 shares of stock at a price of $25 per share. 3 . The company issued 8,000 shares of stock in exchange for equipment that had a fair market value of $160,000. The entry to record transaction 3 would be: a. Equipment 160,000 Common Stock 160,000 b. Common Stock 160,000 Equipment 160,000 c. Additional Paid-in Capital 35,000 Equipment 125,000 Common Stock 160,000 d. Cash 160,000 Equipment 160,000
When there is no direct connection between revenues and costs, the costs are systematically allocated among the periods benefited from the costs
Indicate whether the statement is true or false
In the 1930s and 1940s, the Teamsters Union used strikes and boycotts along with physical intimidation and obstruction to win changes in wages, hours, and working conditions. This is an example of:
A. Business unionism. B. Uplift unionism. C. Jungle unionism. D. Social unionism.
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead$157,050Estimated machine-hours 4,500Actual manufacturing overhead$156,000Actual machine-hours 4,580 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.The predetermined overhead rate is closest to:
A. $34.90 B. $34.06 C. $35.52 D. $34.67