Reference no: EM132966525

Questions -

Q1) Which one of the following statements is incorrect?

a. The date of record is irrelevant with respect to recording a liability for a cash dividend.

b. The dividend liability for a cash dividend is created on the recording date.

c. The declaration of a cash dividend creates a liability.

d. The dividend payment date is when the dividend liability is reduced.

Q2) Eagle Company has working capital of $40,000 and gross current labilities of $100000. What is the current ratio?

a. is 1.40

b. is 1.30

c. cannot be determined from this information.

d. is 0.40

Q3) Assume the following cost of goods sold data for a company:

2020 $1,704,000

2019 $1,400,000

2018 $1,200,000

If 2018 is the base year, what is the Percentage increase in the cost of goods sold from 2018 to 2019?

a. 117%

b. 85.7%

c. 42%

d. 70.4%

Q4) The effect of a stock dividend is to

a. decrease gross assets and total liabilities.

b. increase the book value per share of common stock.

c. none of these answer choices are correct.

d. reduce gross assets and stockholders' equity.