Exam 8: Completing the Operating Cycle

On December 31, 2012, Johnson Corporation reported total revenue of $750,000 and total expenses of $425,000. Johnson had 4,000 shares of stocks outstanding. Also, as of January 1, 2012, Johnson had issued stock options that allowed employees to receive 1,000 shares of stock for free at a time of their choosing in the future. As of December 31, none of these stock options had been exercised. What is diluted earnings per share for Johnson Corporation?

Which of the following is NOT a component of pension expense?

Which type of income shows how much a company earns from carrying on its normal operations?

On December 31, 2012, Rippey Corporation reported total revenue of $3,750,000 and total expenses of $2,125,000. Rippey had 50,000 shares of stocks outstanding. Also, as of January 1, 2012, Rippey had issued stock options that allowed employees to receive 15,000 shares of stock for free at a time of their choosing in the future. As of December 31, none of these stock options had been exercised.

Which type of pension plan promises employees a certain monthly cash amount after they retire?

Which of the following is NOT true about an earnings-based bonus plan?

Which of the following is NOT a criterion for qualifying as an extraordinary item?

The period covered by the assessment of property taxes usually covers a

Which of the following items would be classified in the "Other Revenues and Expenses" section of the income statement?

The gross pay for all employees is debited to

Kline Corporation has taken the following information from the accounting records on December 31, 2012. Prepare an income statement, in good form, for the year ended December 31, 2012. Assume that there are 50,000 shares of capital stock outstanding.

Items incurred or earned from activities peripheral to normal operations are classified as

Which of the following is the appropriate disclosure in the financial statements for a contingent gain?