[SOLVED] Answer the following multiple-choice questions: a.

Answer the following multiple-choice questions:
a. The following relate to Owens data in 2012. What is the ending inventory?
Purchases …………………………..$580,000
Beginning inventory……………. 80,000
Purchase returns ………………….8,000
Sales …………………………………..900,000
Cost of goods sold………………. 520,000
1. $150,000
2. $132,000
3. $152,000
4. $170,000
5. $142,000
b. Changes in account balances of Gross Flowers during 2012 were as follows:
Increase
Assets …………………………………….$400,000
Liabilities ………………………………….150,000
Capital stock …………………………….120,000
Additional paid-in capital…………. 110,000
b. Assuming there were no charges to retained earnings other than dividends of $20,000, the net income (loss) for 2012 was
1. $(20,000).
2. $(40,000).
3. $20,000.
4. $40,000.
5. $60,000.
c. Which of the following would be classified as an extraordinary item on the income statement?
1. Loss on disposal of a segment of business.
2. Cumulative effect of a change in accounting principle.
3. A sale of fixed assets.
4. An error correction that relates to a prior year.
5. A loss from a flood in a location that would not be expected to flood.
d. Net income–noncontrolling interest comes from which of the following situations?
1. A company has been consolidated with our income statement, and our company owns less than 100% of the other company.
2. A company has been consolidated with our income statement, and our company owns 100% of the other company.
3. Our company owns less than 100% of another company, and the statements are not consolidated.
4. Our company owns 100% of another company, and the statements are not consolidated.
5. None of the above.
e. Which of the following will not be disclosed in retained earnings?
1. Declaration of a stock dividend
2. Adjustment for an error of the current period
3. Adjustment for an error of a prior period
4. Net income
5. Net loss
f. Bell Company has 2 million shares of common stock with par of $10. Additional paid in capital totals $15 million, and retained earnings is $15 million. The directors declare a 5% stock dividend when the market value is $10. The reduction of retained earnings as a result of the declaration will be
1. $0.
2. $1 million.
3. $800,000.
4. $600,000.
5. None of the above.
g. The stockholders’ equity of Gaffney Company at November 30, 2012, is presented below.
Common stock, par value $5, authorized ……………………….200,000
shares, 100,000 shares issued and outstanding………………. $500,000
Paid-in capital in excess of par……………………………………….. 100,000
Retained earnings…………………………………………………………. 300,000
$900,000
On December 1, 2012, the board of directors of Gaffney Company declared a 5% stock dividend, to be distributed on December 20. The market price of the common stock was $10 on December 1 and $12 on December 20. What is the amount of the change to retained earnings as a result of the declaration and distribution of this stock dividend?
1. $0
2. $40,000
3. $50,000
4. $60,000
5. None of the above.
h. Schroeder Company had 200,000 shares of common stock outstanding with a $2 par value and retained earnings of $90,000. In 2010, earnings per share were $0.50. In 2011, the company split the stock 2 for 1. Which of the following would result from the stock split?
1. Retained earnings will decrease as a result of the stock split.
2. A total of 400,000 shares of common stock will be outstanding.
3. The par value would become $4 par.
4. Retained earnings will increase as a result of the stock split.
5. None of the above.
i. Which of the following is not a category within accumulated other comprehensive income?
1. Foreign currency translation adjustments.
2. Unrealized holding gains and losses on available-for-sale marketable securities.
3. Changes to stockholders’ equity resulting from additional minimum pension liability.
4. Unrealized gains and losses from derivative instruments.
5. Extraordinary item.

Question: Answer the following multiple-choice questions: a.