Bank,Rupp & Baroque,Inc

question 54

Multiple Choice

Bank,Rupp & Baroque,Inc.began on January 1,2015 by issuing 100,000 shares of $1 par value common stock and 1,000 shares of $50 par value,6% cumulative preferred stock.No dividends were declared in 2015 or 2016.Which of the following statements about this situation is correct?

• A) Dividends Payable should be reported on the December 31, 2015 balance sheet.
• B) Dividends Payable should be reported on the December 31, 2016 balance sheet.
• C) Dividends in arrears should be disclosed in the notes to the 2015 and 2016 financial statements.
• D) Dividends expense should be reported on the income statement for the year ended December 31, 2015.

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Definitions:

Incentive

A factor, often a reward or penalty, that motivates an individual or entity to act in a certain way.

Supply Curve

A visual diagram that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to sell at various price levels.

Human Resource

A department within organizations focused on employee recruitment, management, and providing direction for the people who work in the institution.

Physical Resources

Physical resources refer to tangible assets and materials used in the production of goods and services, such as machinery, buildings, and raw materials.