Net Income: A) Decreases equity. B) Represents the amount of assets stockholders put into a business. C) Equals assets minus liabilities. D) Is the excess of revenues over expenses. E) Represents stockholders' claims against assets.
Q: A business pays cash for dividends. Which of the following accounts is credited? A. Cash O B.…
A: Dividend is the form of distribution of a company's earnings to its shareholders. The rate of…
Q: Which of the following regarding retained earnings is false?a. Retained earnings is increased by net…
A: Answer: Option c
Q: n which of the following cases will the business have Net profit ? a. Expenses are less than revenue…
A: Solution: "Expenses are less than revenue" in this case business will have net profit.
Q: An investment of cash by stockholders into the business willa. decrease total assets.b. increase…
A: When company requires funds, it can obtain funds by issuing debentures or by borrowing from banks…
Q: When a company pays dividends a) the dividends account will be decreased with a debit. b) it doesn't…
A: >Dividends are the payments made to the stockholders for the amount invested by them in form of…
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A: Collected cash from customers in partial settlement of its accounts receivable. Assets: Cash (+)…
Q: When the Dividends account increases, how is the Accounting Equation impacted? O Decrease…
A: Dividends are the distributions that a company makes out of the earned profits to its shareholders…
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A: Introduction: The financial statements are a record of financial activities to assess a…
Q: revenues ew less than expenses, what results on the income statement? What impact does an increase…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: Which of the following financial statements shows how net income (loss) and dividends impacted a…
A: Out of the profit earned by the business organization, some of the profit is distributed by them to…
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A: Accounting Equation: accounting equation is the basis of accounting which is Total Asset = Total…
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A: Income from continued operations is the income which is calculated after subtracting operating and…
Q: Debits always decrease which accounts? O Liabilities, Revenue and Common Stock Assets, Liabilities…
A: Debit and credit are the two aspects of the double entry system. These are used to record the dual…
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A: The financial statements of the business includes balance sheet and income statement.
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A: Introduction:- The following are main financial statements of company as follows under:- Income…
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A: Salary is an expense for a company and an obligation due towards the employees working in that…
Q: The profit that is distributed to the shareholders is called as a. Investment. b. Retained earnings…
A: Following is the answer to the given question
Q: Which of the following statements best defines equity (capital) of a business? A Equity represents…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.
Q: Which of the following causes the accounting equation not to balance? a. Increase assets; increase…
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Q: ne manager wanted to knou nuch liability the company o Which financial statement gi hat information?…
A: Explanation: Balance sheet shows the assets and liabilities of the company. Profit and loss…
Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…
A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.
Q: The owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses…
A: Revenue: Revenue or Sales revenue is the amount earned by the company by selling the goods or…
Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…
A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…
Q: How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It…
A: Assets: These are the resources owned and controlled by business and used to produce benefits for…
Q: revenue may be defined as : a- increase in assets from all sources b- the amount of capital…
A: Revenue is the income generated by a company using the assets employed by it in the normal course of…
Q: Which of the following statements about stockholders' equity is not correct? Group of answer choices…
A: The stockholders equity is represented in the balance sheet of the business.
Q: The statement of changes in financial position was designed to enable financial statement a) Where…
A:
Q: d. Assets minus liabilities. e. The financial statement indicating the profitability of the business…
A: Solution:- d) Discussion of term Asset minus Liabilities as follows under:-
Q: True (t) or false (f) _____ Revenues, gains, and distributions to owners all increase equity.…
A: Equity means the amount that belong to the owner of the business. Balance sheet means a statement…
Q: In which of the following cases will the business have Net profit ? O a. Expenses are equal to…
A: Net profit can be earned if there is revenue exceeding the expenses.
Q: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus…
A: Income statement is the financial statement that helps the users to know the profitability position…
Q: Indicate all correct answers. Dividends:a. Decrease owners’ equity.b. Decrease net income.c. Are…
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Q: Assets are a.always lower than liabilities b.equal to liabilities less stockholders' equity c.the…
A: The correct option is d.financed by the stockholders and/or creditors
Q: The income statement reports the firm's revenues and expenses, and it computes the firm's bottom…
A: The income statement is one of the financial statements that are issued by the company for the users…
Q: Explain why stockholders’ equity is increased by revenuesand decreased by expenses.
A: An expense is the cost of operations that a company incurs to generate revenue. There are two main…
Q: Which of the following items reduces Net Income? (check all that apply) Revenues Stockholders'…
A: The difference of revenues and expenses is known as net income.
Q: If an expense is incurred but not paid, then a) Liabilities will increase b) Stockholder's equity…
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question…
Q: Dividends
A: Option "a" is wrong because the amount , the owner has taken out of business for personal use is…
Q: 1. Which of the following statements is correct? A. Assets on the balance sheet include retained…
A: Balance sheet equation is Total assets = Total liabilities + owners equity
Q: Equity is not affected by all a. Cash receipts b. Revenue c. Dividends d. Expenses
A: a. Cash receipts like receipts from the sale of assets or from accounts receivables do not affect…
Q: Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c.…
A: Cash dividend is a cash payment by a company to shareholders in the form of dividend. If company…
Q: Net loss: O A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of…
A: The equity includes the capital that relates to shareholders.
Q: It represents the cash or other assets withdrawn from the business by the owner for the personal…
A: Drawings represents the cash or other assets withdrawn from the business by the owner for the…
Q: Does the income statement 'tie in' to the balance sheet? If so does it increase or decrease retained…
A: Income statement is also known as profit and loss account, which is one of the company financial…
Q: Retained earnings: a. Has a normal debit balance. b. Decreases stockholders’ equity. c. Is equal to…
A: The question is multiple choice question. Required Choose the Correct Option.
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- What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changesWhich financial statement shows the financial position of the company? A. balance sheet B. statement of owners equity C. statement of cash flows D. income statementEffects of transactions on stockholders’ equity For Target Corporation (TGT), indicate whether the following transactions would (1) increase, (2) decrease, or (3) have no effect on stockholders’ equity. a. Borrowed money front the bank. b. Paid creditors. c. Made cash sales to customers. d. Purchased store equipment. e. Paid dividends. f. Paid store rent. g. Paid interest expense. h. Sold store equipment at a gain. i. Received interest revenue. j. Paid taxes.
- Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assetsEffects of transactions on stockholders’ equity Indicate whether each of the following types of transactions will (a) increase stockholders’ equity or (b) decrease stockholders’ equity. a. Issued common stock for cash. l. Received cash for fees earned. c. Paid cash for utilities expense. d. Paid cash for rent expense. e. Paid cash dividends.Quiz 2: Solvency Debt-to-equity ratio Times interest earned ratio Debt service coverage ratio Cash flow from operations to capital expenditures ratio Profitability Return on assets ratio Return on sales ratio Asset turnover ratio Return on common stockholders equity ratio Leverage Earnings per share (EPS) Price/earnings (P/E) ratio Dividend payout ratio Dividend yield ratio A measure of a companys success in earning a return for the common stockholders. The relationship between a companys performance according to the income statement and its performance in the stock market. The ability of a company to remain in business over the long term. A variation of the profit margin ratio; measures earnings before payments to creditors. A companys bottom line stated on a per-share basis. The percentage of earnings paid out as dividends. The ratio of total liabilities to total stockholders equity. A measure of the ability of a company to finance long-term asset acquisitions with cash from operations. A measure of a companys success in earning a return for all providers of capital. The relationship between net sales and average total assets. The relationship between dividends and the market price of a companys stock. The use of borrowed funds and amounts contributed by preferred stockholders to earn an overall return higher than the cost of these funds. An income statement measure of the ability of a company to meet its interest payments. A statement of cash flows measure of the ability of a company to meet its interest and principal payments. How well management is using company resources to earn a return on the funds invested by various groups.
- Retained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.On which financial statement would the Dividends account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash FlowsThe gross increase in stockholder’s equity attributable to business activities are called: a) Dividends b) Revenues c) Expenses d) Assets
- A. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?. How does the issuance of common stock affect the accounting equation? a) Increases assets and decreases liabilities b) Increases assets and increases equity c) Increases assets and increases liabilities d) Increases liabilities and decreases equityWhich of the following statements concerning retained earnings is true?a. Retained earnings is the difference between revenues and expenses.b. Retained earnings is increased by dividends and decreased by net income.c. Retained earnings represents accumulation of the income that has not been distributed as dividends.d. Retained earnings is reported as a liability on the balance sheet.