If a share of cumulative preferred stock has a call price of $95 and has had four years of dividends of $5 each, what is the book value of that share of stock? Mark one answer:
(A)$95
(B)$100
(C)$115
(D)$105
(E)$110
GAAP refers to: Mark one answer:
(A)General accounting assistance program (B)Generally accepted accounting principles (C)Generally acceptable account procedures (D)The theory that accounting and the general public look at financial statements differently
Correct Answer: B
The controller of a small utility company has interviewed audit firms proposing to perform the annual audit of their employee benefit plan. According to the guidelines of the Department of Labor (DOL), the selected auditor must be
(A)The firm that proposes the lowest fee for the work required. (B)Independent for purposes of examining financial information required to be filed annually with the DOL. (C)Included on the list of firms approved by the DOL. (D)Independent of the utility company and NOT relying on its services.
Correct Answer: B
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
More CPA Exam Questions
- 1Larry, who uses the accrual basis of accounting, hired an extra driver to help him make deliveries in December. The extra driver only works from December 1st through the 31st . Larry pays the driver on January 5th, but the expense is shown on the December income statement. Why? Mark one answer:
- 2On July 1, Year 5, Eagle Corp. issued 600 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, Year 5 and mature on April 1, Year 15. Interest is payable semiannually on April 1 and October 1. What amount did Eagle receive from the bond issuance?
- 3If an exempt organization is a corporation, the tax on unrelated business taxable income is
- 4In the statement of owner’s equity, owner’s equity or capital is calculated using: Mark one answer:
- 5The purpose of the trial balance is to: