Question 1.1. Stockholders' equity is usually equal to cash on hand. includes paid-in capital and liabilities.

Question 1.1. Stockholders' equity 

        is usually equal to cash on hand.

        includes paid-in capital and liabilities.

        includes retained earnings and paid-in capital.

        is shown on the income statement.

Question 2.2. Which statement below is NOT a reason for a corporation to buy back its own stock? 

        Resale to employees

        Bonus to employees

        For supporting the market price of the stock

        To increase the shares outstanding

Question 3.3. Current liabilities are 

        due but not receivable for more than one year.

        due but not payable for more than one year.

        due and receivable within one year.

        due and payable within one year.

Question 4.4. Gross earnings for a payroll period less payroll deductions are referred to as 

        overtime pay.

        bonus pay.

        gross pay.

        net pay.

Question 5.5. What options does a business have when financing operations? 

        Debt financing

        Equity financing

        Asset financing

        Both debt financing and equity financing

Question 6.6. How is treasury stock shown on the balance sheet? 

        As an asset

        As a decrease in stockholders' equity

        As an increase in stockholders' equity

        Treasury stock is not shown on the balance sheet.

Question 7.7. The total earnings of an employee for a payroll period are referred to as 

        take-home pay.

        pay net of taxes.

        net pay.

        gross pay.

Question 8.8. An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee?

        $798.85

        $873.77

        $953.16

        $1,223.77

Question 9.9. Which of the following would most likely be classified as a current liability? 

        Two-year notes payable

        Bonds payable

        Mortgage payable

        Unearned rent

Question 10.10. A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will 

        200,000 shares.     

        50,000 shares.

        250,000 shares.

        12,500 shares.