Questions from General Accounting

Q: How does declaring a stock dividend affect the corporation’s assets, liabilities

How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity? What are the effects of the eventual distribution of that stock?

Q: Why are incidental costs sometimes ignored in inventory costing? Under what

Why are incidental costs sometimes ignored in inventory costing? Under what accounting constraint is this permitted?

Q: What is the difference between a stock dividend and a stock split

What is the difference between a stock dividend and a stock split?

Q: How is book value per share computed for a corporation with no

How is book value per share computed for a corporation with no preferred stock? What is the main limitation of using book value per share to value a corporation?

Q: List the general rights of common stockholders.

List the general rights of common stockholders.

Q: What is the difference between the market value per share and the

What is the difference between the market value per share and the par value per share?

Q: Describe the debt-to-equity ratio and explain how creditors

Describe the debt-to-equity ratio and explain how creditors and owners would use this ratio to evaluate a company’s risk.

Q: What obligation does an entrepreneur (owner) have to investors that

What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the business?

Q: Compare and contrast an operating lease with a capital lease.

Compare and contrast an operating lease with a capital lease.

Q: Describe the two basic types of pension plans.

Describe the two basic types of pension plans.