Duke Corporation Reports the Following Components of Stockholders' Equity on December

question 176

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31, 2013: $\begin{array}{lr}\text { Common stock — } \$ 25 \text { par value, } 100,000 \text { shares authorized, 45,000 shares issued } & \$ 1,125,000 \\\text { and outstanding } \\\text { Paid-in capital in excess of par value, common stock } & 60,000\\\text { Retained earnings } & 460,000 \\\text { Total stockholders' equity }& \$ 1,645,000\end{array}$ What is the amount of the dividend declared?

• A) $177,000
• B) $135,000
• C) $121,500
• D) $326,000
• E) $338,500

Grasp why systems of internal control are necessary for companies of all sizes.

Recognize the importance of employee vacations as a strength in the system of internal controls for promoting operational efficiency.

Understand the scope of internal control, emphasizing the significance of authority levels and physical controls.

Acknowledge the role of technology in internal controls and the persistent need for such systems in automated environments.

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Definitions:

Self-serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.

False Confidence

An unfounded belief in one's abilities or outcomes, which can lead to taking undue risks or making poor decisions.

Glass Ceiling Effect

An invisible barrier limiting career advancement of women and members of visible minorities.

Stereotyping

The oversimplified and generalized perception or judgment of a group of people based on common traits or attributes.