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NEW QUESTION 23
A corporation had profit for the year of US $101,504 and a simple capital structure consisting of the following ordinary shares outstanding:
What was the corporation’s basic earnings per share rounded to the nearest cent)?
- A. US $2.90
- B. US $3.20
- C. US $3.26
- D. US $3.45
Answer: B
Explanation:
BEPS equals profit or loss attributable to ordinary equity holders divided by the weighted-average number of ordinary shares outstanding. The latter is calculated as follows:
C:Documents and Settingsusernwz1Desktop1.PNG Accordingly, BEPS is US $3.20 $101,504 profit – 31,720 shares).
NEW QUESTION 24
An entity has US $400 of current assets, composed of US $200 of cash, US $100 of accounts receivable, and US $100 of inventory. The entity has US $200 of long-term debt, US $100 of accounts payable, and US $75 of notes payable. The notes payable are due in 6 months. The acid-test ratio, to two decimal places, is:
- A. 1.29
- B. 1.71
- C. 0.80
- D. 2.29
Answer: B
Explanation:
The acid-test ratio equals current assets US $400) minus inventories US $100), divided by current liabilities US $100 + $75 = US $175), or 1.71.
NEW QUESTION 25
The use of teams in total quality management TOM) is important because:
- A. Employee motivation is higher for team members than for individual contributors.
- B. Well-managed teams can be highly creative and are able to address complex problems better than individuals can.
- C. Teams are quicker to make decisions, thereby helping to reduce cycle time.
- D. The use of teams eliminates the need for supervision, thereby alloying a company to become leaner and more profitable.
Answer: B
Explanation:
Teams can use the diverse knowledge and skills of all team members. Employee involvement means training and empowering employees to harness their creativity for problem solving. Quality control circles are used to obtain input from employees and to locate the best perspective on problem solving.
NEW QUESTION 26
What must be monitored in order to manage risk of consumer product inventory obsolescence?
1.Inventory balances. 2.Market share forecasts. 3.Sales returns. 4.Sales trends.
- A. 1 and 4 only
- B. 1, 2, and 3 only
- C. 4 only
- D. 1 only
Answer: A
NEW QUESTION 27
In recording transactions, which of the following best describes the relation between expenses and losses?
- A. Expenses can always be prevented, whereas losses can never be prevented.
- B. Losses are material items, whereas expenses are immaterial items.
- C. Losses are extraordinary charges to income, whereas expenses are ordinary charges to income.
- D. Losses are expenses that may or may not arise in the course of ordinary activities.
Answer: D
Explanation:
Expenses are defined as “decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrence’s of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.”
Expenses include losses. Thus, losses are not treated as separate elements. Expenses include items arising in the course of ordinary activities. Losses meet the definition of expenses but may or may not occur in the course of ordinary activities. For example, losses may result from the sale of noncurrent assets or from natural disasters.
NEW QUESTION 28
……