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Home / Questions / A good measure of confidence in a corporation future is the

A good measure of confidence in a corporation future is the

A good measure of confidence in a corporation's future is the

 

a.

price/earnings ratio.

b.

par value.

c.

return on equity.

d.

dividends yield.

 

 

 

86.Compensation expense related to employee stock option plans is to be measured by the excess of the

 

a.

fair value of the options over the exercise price at the date the options are granted.

b.

fair value of the options over the exercise price at the date the options are exercised.

c.

exercise price over the fair value of the options at the date the options are granted.

d.

exercise price over the fair value of the options at the date the options are exercised.

 

 

 

87.Which of the following statements is true of stock option plans?

 

a.

Compensation expense is recorded only if the exercise price is less than the fair value on the grant date.

b.

The issued stock is recorded at the market price, not the option price.

c.

Compensation is measured on the date the stock is issued.

d.

A gain or loss might be recorded on the date the stock is issued.

 

 

 

88.Which of the following is the appropriate entry to record the declaration of cash dividends?

 

a.

Debit Dividends, Credit Dividends Payable

b.

Debit Dividends Payable, Credit Cash

c.

Debit Retained Earnings, Credit Cash

d.

Debit Additional Paid-in Capital, Credit Dividends Payable

 

 

 

89.The board of directors of Berweck Corporation declared a cash dividend on January 18, 20x7, to be paid on February 18, 20x7, to shareholders holding the stock on February 2, 20x7. Given these facts, the date February 2, 20x7, is referred to as the

 

a.

payment date.

b.

ex-dividend date.

c.

declaration date.

d.

record date.

 

 

 

90.The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 20x7. The dividend is to be paid on July 15, 20x7, to shareholders of record on July 1, 20x7. The proper entry to be recorded on June 14, 20x7, will include a

 

a.

credit to Retained Earnings.

b.

debit to Dividends.

c.

debit to Dividends Payable.

d.

credit to Cash.

 

 

 

91.The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 20x7. The dividend is to be paid on July 15, 20x7, to shareholders of record on July 1, 20x7. The effects of the entry to record the declaration of the dividend on June 14, 20x7, are to

 

a.

increase stockholders' equity and increase liabilities.

b.

decrease stockholders' equity and increase liabilities.

c.

decrease stockholders' equity and decrease assets.

d.

increase stockholders' equity and decrease assets.

 

 

 

92.The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 20x7. The dividend is to be paid on July 15, 20x7, to shareholders of record on July 1, 20x7. The proper entry to be recorded on July 15, 20x7, will include a

 

a.

credit to Dividends.

b.

debit to Dividends Payable.

c.

credit to Dividends Payable.

d.

debit to Dividends.

Dec 10 2019 View more View Less

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