Reference no: EM132489741

Question 1: For the year of 2017, a firm reported Net Income of $100,000 and issued $20,000 in Preferred Stocks' Dividends. At the beginning of the year, the firm had 1 million common stocks outstanding. 1 million more common stocks were issued in March 31, 2017. Additionally, 500,000 more common stocks were issued in June 31. What is the firm's Basic Earnings Per Share for the year of 2017?

a.$0.040.

b.$0.050.

c.$0.053.

d.$0.032.

Question 2: In the Statement of Cash Flow, which category includes the purchase and sale of long-term assets?

a.Financing Activities

b.Lending Activities.

c.Operating Activities

d.Investing Activities.

Question 3: Choose the option that correctly completes the statement: "Comparability, Verifiability and Understandability are all examples of the Conceptual Framework's ______________."

Relevance characteristics.

Completeness characteristics.

Faithful Representation characteristics.

Enhancing characteristics.

Question 4: Under the Conceptual Framework, the qualitative characteristic of Relevance includes:

a.Neutrality, timeliness, and materiality.

b.Predictive value; confirmatory value, and materiality.

c.Completeness, confirmatory value, and comparability.

d.Predictive value, completeness, and comparability.

Question 5: On January 1, 2016, a firm entered a five-year construction contract with a contract price of $10,000,000. On December 31, 2016, the firm estimated the Gross Profit (Loss) for the contract to be $1,000,000 profit. On December 31, 2017, the firm estimated the Gross Profit (Loss) for the contract to be ($400,000) loss. Under the Completed Contract Method, the journal entry to record Gross Profit (Loss) should include:

a.A debit to CIP of $1,000,000.

b.No Entry.

c.A credit to CIP of $400,000.

d.A credit to CIP of $1,400,000.

Question 6: A long-term construction contract was recently completed for profit. At no point during the contract were Total Estimated Costs greater than the Contract Price. Once all performance obligations have been satisfied, we must:

a.Credit Construction Revenue under the Percentage of Completion Method only.

b.Close the CIP account under both the Percentage of Completion Method and the Completed Contract method.

c.Close CIP under the Percentage of Completion Method only.

d.Credit Cost of Construction under both the Percentage of Completion Method and the Completed Contract method.