71 a component of equity that arises when a parent company owns a majority of the co 4313951

71.A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as

a.majority interest.

b.noncontrolling interest.

c.earned capital.

d.unearned capital.

72.Distributions to owners include all of the following except

a.paying dividends.

b.repurchasing treasury stock.

c.giving away fixed assets.

d.noncontrolling interests.

73.In preparing a statement of changes in shareholders' equity, the company includes land given to a shareholder as a dividend. This transaction is included in the statement because it represents

a.an investment by a shareholder that increases equity.

b.an investment by a shareholder that decreases equity.

c.a distribution to a shareholder that increases equity.

d.a distribution to a shareholder that decreases equity.

74.A reader of a set of financial statements would expect to be able to find in the statement of changes in shareholders' equity

a.increasesin total assets.

b.increasesin total liabilities.

c.increasesto net income.

d.increasesfromothercomprehensive income.

75.GAAP requires that all derivative financial instruments be reported at their

a.historical cost.

b.fair value.

c.present value.

d.par value.

76.A reader might find information about gain contingencies in an annual report by examining

a.a contingent account receivable.

b.an accrued revenue.

c.a deferred revenue.

d.footnote disclosures.

77.A subsequent event is an event that occurs

a.after the annual report is issued.

b.anytime after the end of the accounting period.

c.between the end of the accounting period and the date the annual report is issued.

d.anytime before the annual report is issued.

78.All of the following are examples of subsequent events that would be disclosed in the footnotes to the financial statements except

a.fire or flood loss.

b.a litigation settlement.

c.a bond issuance after the balance sheet date.

d.the write off ofa significantuncollectible account.

79.Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as

a.segment analysis.

b.significant events.

c.related party transactions..

d.contingent activities.

80.The SEC requires disclosure of quarterly high and low market prices for

a.two years.

b.three years.

c.four years.

d.The SEC does not require disclosure of quarterly high and low market prices.