Assume Encumbrances Do Not Expire at Year-End

question 87

Multiple Choice

Assume encumbrances do not expire at year-end. $16,000 was encumbered during the prior year for a computer and the actual cost of the computer in the current year is $14,000. How does this affect unassigned fund balance?

• A) Previous Year: increase $16,000; Current Year: decrease $14,000
• B) Previous Year: decrease $16,000; Current Year: increase $2,000
• C) Previous Year: no effect; Current Year: decrease $14,000
• D) Previous Year: decrease $16,000; Current Year: decrease 14,000

Recognize the constraints and regulations governing the issuance of dividends and the repurchase of shares by a corporation.

Identify the roles and powers of a corporation's board of directors in setting stock prices, issuing shares, and declaring dividends.

Comprehend the importance and application of various types of tests (e.g., earned surplus test, net asset test) in determining a corporation's ability to issue dividends.

Distinguish between par value and no par value stocks and their implications for capital surplus.

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Definitions:

Delusions of Reference

False beliefs that insignificant remarks, events, or objects in one's environment have personal meaning or significance.

Grandiose Delusion

A false belief of one's own superiority, greatness, or omnipotence that is not grounded in reality.

Delusions

Fixed false beliefs that are resistant to reason or confrontation with actual fact, often found in psychological disorders such as schizophrenia.

Delusion of Thought Insertion

A false belief where a person thinks that thoughts not their own are being inserted into their mind by an external source.