F1 M2 EPS and Public Company Reporting Topcis Flashcards
Each of the following events is required to be reported to the United States Securities and Exchange Commission on Form 8-K, except:
A. The quarterly results of operations and financial condition of a registrant. B. The unregistered sale of equity securities. C. The creation of an obligation under an off-balance sheet arrangement of a registrant. D. A change in a registrant’s certifying accountant.
A. The quarterly results of operations and financial condition of a registrant.
On December 1 of the current year, Clay Co. declared and issued a 6 percent stock dividend on its 100,000 shares of outstanding common stock. There was no other common stock activity during the year. What number of shares should Clay use in determining basic earnings per share for the current year?
A. 106,000 B. 100,500 C. 100,000 D. 103,000
A. 106,000
A company is an accelerated filer that is required to file Form 10-K with the United States Securities and Exchange Commission (SEC). What is the maximum number of days after the company’s fiscal year end that the company has to file Form 10-K with the SEC?
75 days
On January 16, Tree Co. paid $60,000 in property taxes on its factory for the current calendar year. On April 2, Tree paid $240,000 for unanticipated major repairs to its factory equipment. The repairs will benefit operations for the remainder of the calendar year. What amount of these expenses should Tree include in its third quarter interim financial statements for the three months ended September 30?
A. $95,000 B. $15,000 C. $0 D. $75,000
A. $95,000
A U.S. publicly traded company’s second fiscal quarter ends on March 31. If the company is an accelerated filer, what is the latest date that the 10-Q should be filed with the U.S. SEC?
A. June 29 B. May 15 C. May 10 D. May 30
C. May 10 (40 days)
Deck Co. had 120,000 shares of common stock outstanding at January 1, Year 2. On July 1, Year 2, it issued 40,000 additional shares of common stock. Outstanding all year were 10,000 shares of nonconvertible cumulative preferred stock. What is the number of shares that Deck should use to calculate Year 2 earnings per share?
140,000 shares
Lem Co., which accounts for treasury stock under the par value method, acquired 100 shares of its $6 par value common stock for $10 per share. The shares had originally been issued by Lem for $7 per share. By what amount would Lem’s additional paid-in capital from common stock decrease as a result of the acquisition?
$100
Under U.S. GAAP, gains or losses from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency, into the parent company’s currency should be reported as a(n):
A. Gain or loss in other comprehensive income B. Gain or loss in income from continuing operations C. Deferred foreign exchange gain or loss D. Capitalized onto the balance sheet
B. Gain or loss in income from continuing operations
Which is correct regarding the rights of common stockholders?
I. Dividend rights of common stockholders are subordinate to that of preferred stockholders in the dividend allocation process
II. Common stockholders have the right to vote for the board of directors, auditors, and other major issues
Both I and II
Hawaii Beach Club is contemplating a stock split. A stock split will:
A. Decrease the amount of contributed capital B. Decrease retained earnings C. Increase the number of shares outstanding D. Increase the amount of contributed capital
C. Increase the number of shares outstanding
Stock that is reacquired by the issuing company, reducing the amount of stock actively being traded on the open market, or often referred to as outstanding, is what?
Treasury Stock
The fair value of the consideration’s excess received over the stated value of the no-par common stock should be credited to what?
Additional paid in capital
The process of converting a foreign subsidiary’s financial statements from the functional currency to the parent company’s reporting currency best describes what?
Translation
Boobaloo Robotics issues their S-1 with the SEC in January of Year 1. Fast forward to November 1st Year 1, and Boobaloo is going public on the NYSE. Boobaloo issues 10,000 shares of $1 par value common stock in the current year. The market price of the stock was $14 per share on the day that it is issued. What should the corporation record for cash after the stock is issued?
$140,000
Avair Corp, a U.S.-based company, has a wholly owned subsidiary located in Spain. When translating the revenues and expenses of the subsidiary, which exchange rate would be used?
A. Average rate B. Current rate C. Historical rate D. Spot rate
A. Average rate
