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Cartman's Cats has $1,000,000 in assets after purchasing Big Bertha's Birds, along with $500,000 in liabilities. It has 500 shares capital stock outstanding. What is the book value of each share of stock? Mark one answer:

(A)$1,000

(B)$50

(C)$500

(D)$2,000

(E)$500,000

The purchase of treasury stock would be shown under which section on the statement of cash flows? Mark one answer:

(A)Operating (B)Investing (C)Financing (D)Supplemental (E)It is not reported on the statement of cash flows.

Correct Answer: C

When can I take the CPA Exam

The CPA Exam is offered four times each year: January 1 – March 10, April 1 – June 10, July 1 – September 10 and October 1 – December 10.

Bart’s Brewskies has grown beyond its wildest dreams. They are now a corporation and have hired an accountant. Their income statement is now showing a net income. How is this income shown on the Statement of Retained Earnings? (I) It increases retained earnings.(I). It is shown as dividends paid to shareholders.(I)I. It does not impact the Statement of Retained Earnings. Mark one answer:

(A)Only statement I is correct. (B)Only statement II is correct. (C)Only statement III is correct. (D)Both statement I and II could be correct. (E)None of the statements are correct.

Correct Answer: D