2nd Quiz 9-16 Flashcards
Although stock rights were received 6 months after the purchase, the rights still…
Ride with the purchase
The investor receiving stock rights must allocate a portion of…
The purchase price of the investment that carried the rights
How are stock rights allocated? Example using 1,000 shares at $60, with rights of $1 at market price of $61 on balance sheet date
Allocate portion of the purchase price based market value of
Rights as percentage of total market value of stock + rights
Ex $60,000 x ($1/($61 + $1)) = $968
Replacement cost is reported as lower cost of market value, If replacement cost falls below…
Net realizable value and above NRV - normal profit margin
A deferred tax liability exists when…
Underlying temporary differences are taxable temporary differences
Price indexes in Dollar value LIFO serve as…
Estimates of price level changes
Topic 275 of the FASB’s Accounting Standards Codification is entitled “Risks and Uncertainties”. It addresses…
The disclosures required to facilitated a user’s evaluation of
An entity’s risks and uncertainties
Would additional paid in capital be affected on the dividend declaration date or the dividend distribution date?
Dividend declaration date
What is the journal entry to record a stock dividend declaration?
Retained Earnings. Xxx
Common stock dividend distributable. Xxx
Additional Paid in Capital Xxx
A sole proprietorship business is not a…
2) what does this mean?
Taxable entity
2) there is no required provision for income taxes
Business income from a sole proprietorship is…
Passed through to the owner
Taxes would be paid by the owner on the proprietor’s…
Personal tax return
