Assets are A. the same as expenses because they are acquired with cash B. financed by the stockholders and/or creditors C. equal to liabilities less stockholders' equity D. always lower than liabilities
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- Assets are a.always lower than liabilities b.equal to liabilities less stockholders' equity c.the same as expenses because they are acquired with cash d.financed by the stockholders and/or creditorsHow would the issuance of common stock for cash affect the accounting equation?a. Increase assets and increase stockholders’ equityb. Increase liabilities and decrease stockholders’ equityc. Increase assets and increase liabilitiesd. Decrease assets and decrease liabilitiesEquity is not affected by all a. Cash receipts b. Revenue c. Dividends d. Expenses
- Which of the following does not represent a cash flow relating to operating activities? a. Dividends paid to stockholders. b. Cash received from customers. c. Interest paid to bondholders. d. Cash paid for salaries.The increases in stockholders' equity attributable to selling services or products to customers are called a.liabilities b.revenues c.expenses d.assetsWhich of the following statements is FALSE?i. Using the payback rule, you can calculate how much profits are earned over the investment period.ii. The IRR is sensitive to the timing of the cash flows.iii. Shareholders have the first claim on the cash flows of the company.
- In the statement of cash flows, it is necessary to break down the change in shareholders' equity into two lines: _________ and _________ net income and dividend paid net income and retained earning not choice given net income and shareholder's equity net income and interest paymentStockholders' equity a.is usually equal to cash on hand b.includes retained earnings and paid-in capital c.is shown on the income statement d.includes paid-in capital and liabilitiesStockholders' equity a.is shown on the income statement b.is usually equal to cash on hand c.includes paid-in capital and liabilities d.includes retained earnings and paid-in capital
- Which of the following items is not considered an operating cash flow in the statement of cash flows? a. Dividends paid to stockholders. b. Cash received from customers. c. Interest paid to creditors. d. Cash paid for salaries.Which of the following best describes the information reported in the income statement? Multiple Choice The current resources available to pay current obligations. The portion of profits paid in cash to stockholders. The extent to which cash inflows exceed cash outflows. The amount recognized from providing goods and services to customers compared to the cost of doing so.Directions: Fill in the following table using the equation: ∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity. Indicate the name of the noncash asset, liability, or equity account affected by the transaction and if change in cash is classified as operating (O), investing (I), financing (F), or noncash (NC). The first line has been completed for you as an exampleItem∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity1. Prepaid office rent for cash -O = - + Prepaid Rent + + 2. Sale of land held for cash = - + + 3. Cash payment of taxes payable = - + + 4. Issue preferred stock to investors for cash = - + + 5. Purchase equipment that is financed directly by the seller = - + + 6. Paid cash dividend = - + + 7. Pay notes payable = - + + 8. Pay interest payable = - + +