Using the Following Balance Sheet and Income Statement Data, What

question 137

Multiple Choice

Using the following balance sheet and income statement data, what is the earnings per share? $$\begin{array} { l r l r } \text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \\\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \\\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000 \\\text { Total assets } & 90,000 & &\end{array}$$ Average common shares outstanding was 15,000.

• A)$3.00
• B)$4.20
• C)$0.33
• D)$0.50

Distinguish between ordinary repairs and capital expenditures and their respective accounting treatments.

Comprehend the unique accounting treatments for natural resources and intangible assets, including depreciation, amortization, and depletion.

Understand the criteria and process for recognizing and measuring the impairment of assets.

Grasp the principles of accounting for lump-sum purchases and the allocation of cost among acquired assets.

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Definitions:

Segmented Information

Financial information that is presented for different divisions, segments, or geographical locations of a company to provide insight into its performance.

Financial Analysis

The evaluation of a business's financial statements to understand its performance, trends, and financial health.

Consolidated Statements

Financial reports that aggregate the financial position and operations of a parent company and its subsidiaries as one single entity.

Operating Loss

A financial situation where a company's operating expenses exceed its gross profits.