41) On January 1, 2010, Automatic Train Corporation had 30,000 common shares outstanding issued at $10 each. On June 1, 2010, Automatic Train Corporation issued 12,000 shares of its common shares at $15 per share. On November 30, 2010, Automatic Train Corporation repurchased 3,000 shares of its common shares for $17 per share. The balance in Common shares on December 31, 2010, as shown on the statement of shareholders' equity, is:
A) $429,000
B) $445,200
C) $445,714
D) $480,000
42) On January 1, 2011, Balises Corporation's Retained Earnings account has a balance of $300,000. During 2011, cash dividends of $20,000 were declared and stock dividends with a market value of $40,000 were declared. Net income for 2011 amounted to $90,000. On June 30, 2011, Balises Corporation issued 5,000 shares of common shares at $10 per share. What is the balance in Retained Earnings appearing on the statement of shareholders' equity on December 31, 2011?
A) $420,000
B) $380,000
C) $330,000
D) $440,000
43) On January 1, 2010, CRJ200 Corporation had 30,000 of common shares outstanding issued at $16 per share in 2009. On June 1, 2010, CRJ200 Corporation issued 10,000 shares of its common shares at $15 per share. On November 30, 2010, CRJ200 Corporation reacquired 3,000 shares of its common shares for $17 per share. The entry to record the share repurchase would include a:
A) debit to Cash for $51,000
B) credit to Share Capital for $47,250
C) debit to Retained Earnings for $3,750
D) debit to Retained Earnings for $51,000
44) Which of the following would
not
be reported on the statement of shareholders' equity?
A) interest expense
B) net income
C) repurchased share transactions
D) cash dividends declared but not paid
45) Companies issuing publicly-traded stock are required to have their financial statements audited by an external auditor. This requirement is placed on corporations by the:
A) Canada Revenue Agency
B) Provincial Securities Commissions
C) Various federal and provincial incorporating acts
D) the Prime Minister of Canada
46) The paragraph in a typical audit report that describes how the audit was performed is the:
A) first paragraph
B) second paragraph
C) third paragraph
D) footnotes to the audit report
47) The primary responsibility of the independent auditor is to decide whether the company's:
A) internal controls are effective
B) financial statements are free from errors
C) management has complied with all applicable laws and regulations during the fiscal year under audit
D) financial statements comply with generally accepted accounting principles (GAAP)
48) The responsibility for a company's financial statements rests with:
A) the treasurer of the company
B) top management of the company
C) the controller of the company
D) the external accountants that perform the independent audit
49) A standard audit report issued by outside auditors typically contains:
A) 1 paragraph
B) 2 paragraphs
C) 3 paragraphs
D) 4 paragraphs and footnotes when necessary
50) In which paragraph, if any, of a standard unqualified audit report does the auditor state his or her opinion regarding the reliability of the financial statements?
A) first paragraph
B) third paragraph
C) third paragraph if the audit opinion is qualified
D) fourth paragraph if a disclaimer is issued