Lyman Company Case Study
an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. | | C. the expense recognized each period is equal to the cash contribution. | | D. the liability is determined based upon known variables that reflect future salary levels promised to employees. | | | | 39) The interest on the projected benefit obligation component of pension expense | A. reflects the rates at which pension benefits could be effectively settled. | | B. reflects the incremental borrowing rate of the employer. | | C. is the same as the expected return on plan assets. | | D. may be stated implicitly or explicitly when reported. | |
40) Windsor Company has outstanding both common stock and nonparticipating, noncumulative preferred stock. The liquidation value of the preferred is equal to its par value. The book value per share of the common stock is unaffected by | A. the declaration of a stock dividend on common stock payable in common stock when the market price of the common is equal to its par value. | | B. a 2-for-1 split of the common stock. | | C. the declaration of a stock dividend on preferred payable in preferred stock when the market price of the preferred is equal to its par value. …show more content…
the payment of a previously declared cash dividend on the common stock. | | | | 41) Dividends are not paid on | A. nonparticipating preferred stock. | | B. Dividends are paid on all of these. | | C. noncumulative preferred stock. | | D. treasury common stock. | | | | 42) Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called | A. par value per share. | | B. market value per share. | | C. book value per share. | | D. stated value per share. | |
43) Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the | A. relevance characteristic. | | B. neutrality characteristic. | | C. economic entity assumption.