3 ) Proceeds from an issue of debt securities having stock warrants should NOT be allocated between debt and equity features when
A . the warrants issued with the debt securities are nondetachable .
B . exercise of the warrants within the next few fiscal periods seems remote .
C . the allocation would result in a discount on the debt security . D . the market value of the warrants is NOT readily available . 4 ) Total stockholders ‟ equity represents
A . only the amount of earnings that have been retained in the business .
B . the maximum amount that can be borrowed by the enterprise . C . a claim against a portion of the total assets of an enterprise . D . a claim to specific assets contributed by the owners .
5 ) When a corporation issues its capital stock in payment for services , the least appropriate basis for recording the transaction is the
A . Any of these provides an appropriate basis for recording the transaction .
B . par value of the shares issued . C . market value of the shares issued . D . market value of the services received . 6 ) A primary source of stockholders ‟ equity is
A . both income retained by the corporation and contributions by stockholders .