2024 – 1 Income taxes payable are recognized as an expense once they are paid to the respective government or taxing authority

1. Income taxes payable are recognized as an expense once they are paid to the respective government or taxing authority. T or F

 

2. All changes in all stockholders’ equity accounts must be shown in the Stockholders’ Equity section of the balance sheet. T or F

 

3. Cash flow per share is computed by dividing cash on the balance sheet by the number of share outstanding. T or F

 

4. The cumulative feature of stock allows the firm to eliminate a class of stock by paying the stockholders a special amount. T or F

 

5. In general, the international accounting standards provide lease criteria that are similar to the U.S. standards. T or F

 

6. When stock is issued for cash, only the par value of the stock should be reported in the stock account. T or F

 

7. The statement of cash flows emphasizes explanations for the change in net income. T or F

 

8. Cash dividends become a liability to a corporation on the date of record. T or F

 

9. An investor views a high debt to equity ratio and a low times interest earned as a favorable sign of a company’s abilities to meet its long-term obligations. T or F

 

10. When treasury stock is reissued and the cost is less than the reissue price, the difference increases additional paid-in capital. T or F