Question 261
Currently the market in a stock is "$30.12 bid, offered at 30.62". A new buy limit order is placed at
$ 30.25. This limit order is said to:
Question 262
The following data pertains to the Megatron company: Net income equals $15,000 5,000 shares of common stock issued on January 1 10 percent stock dividend issued on June 1 1000 shares of common stock were repurchased on July 1 1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common were outstanding the whole year How many common shares should be used in computing the company's basic earnings per share (EPS)?
Question 263
According to the Framework for the Preparation and Presentation of Financial Statements, the objective of financial statements is fair presentation of the company's
I). financial position.
II). financial performance.
III). cash flows.
IV). earning power.
Question 264
On January 2, 2002, Heather Ltd. signed a ten-year noncancelable lease for a passenger ferry. The lease stipulated annual payments of $70,000 starting at the end of the first year, with title passing to
Heather at the expiration of the lease. Heather treated this transaction as a capital lease.
The ferry has an estimated useful life of 15 years, with no residual value. Heather uses straight-line amortization for all of its capital assets. Aggregate lease payments were determined to have a present value of $420,000, based on implicit interest of 10%.
In its 2002 income statement, what amount of amortization expense should Heather report from this lease transaction?
Question 265
Which of the following describe(s) a speculator?
I). An investor who neither wishes to sell natural gas nor wishes to buy natural gas takes a SHORT position in natural gas futures contracts
II). A pet food manufacturer who wishes to purchase a large quantity of corn at the end of 6 months' time takes a LONG position in corn futures contracts
III). An investor who neither wishes to buy silver nor sell silver takes a LONG position in silver futures contracts