Which of the following types of business organization is more likely to enter into long-term contracts?

Answer

a.sole proprietorships

b.any of the above

c.corporations

d.partnerships

Question

When corporations account for their taxes, they estimate their taxes quarterly and accrue them for payment. In such a transaction, the account Income Tax Expense receives:
Answer

a.a footnote stating the details of the transaction.

b.none of the above.

c.a credit.

d.a debit.

Question 8

Stockholders expect to receive a certain amount of money in return for their investments in corporations. When they come in the form of cash, these returns are called:
Answer

a.cash dividends.

b.par values.

c.stock dividends.

d.issued shares.

Question 9

Accountants sometimes make mistakes in recording transactions. A prior period adjustment is shown on the:
Answer

a.statement of cash flows.

b.statement of retained earnings.

c.balance sheet.

d. income statement.

Question 10

The Ultimate Restaurant Corporation declares a stock dividend as well as its usual cash dividend of $.25 per share. For the stock dividend, existing stockholders will receive 10 percent of the amounts of stock they currently hold. If Joan currently has 1,000 shares of stock in this company, she will receive cash dividends and stock dividends worth a total of:
Answer

a.$100.

b.$250.

c.$275.

d.$210.

Question 11

Robert owns 50 shares of stock from a certain corporation. Each share is worth $3.00. After the corporation declares a two-for-one stock split, his shares are worth ________ each.

Answer

a.$150.00

b.$1.50

c.$3.00

d.$6.00

Question 12

The Aquatics Corporation issues only common stock. It has total stockholders' equity of $200,000 and 50,000 outstanding shares. The par value of each share is $3. The book value per share of stock is:
Answer

a. $16.

b. $4.

c. $150,000.

d. $3.

Question

Describe the ethics checklist and give an example in a hospitality situation on how it can be applied. (The Five P's of Ethical Power, they are purpose, pride, patience, persistence and perspective.)