Payment of Dividend to the shareholders is categorised as a) Operating Activity b) Financing Activity c) Investment Activity d) Non Cash Financing Activity

Q: From a practical point of view, according to financial compliance, dividends must be: a)…

A: Dividend= profits distributed to the shareholders

Q: In a statement of cash flows, interest paid to creditors is classified as a cash flow from: Group…

A: The correct answer is “Operating activities.”

Q: We should report Dividends as:-  Select one: a. financing activity-inflow b. financing activity-…

A: Cash flow statement is the summary of inflow and outflows of cash in 3 categories of operating,…

Q: Which one of the following is a payment of either cash or shares of stock that is paid out of…

A: Retained earnings are the part of the profit left over after payment of all the direct and indirect…

Q: Which of the following transactions is a financing activity? Select one: a. Cash paid for purchase…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Which statements above are incorrect?

A: Treasury stock: These are the stocks that are brought back by the company in order to reduce…

Q: Property dividends distributed are reported in connection with a statement of cash flows as______?:…

A: The cash flow statement is helpful for the stakeholders as they can identify the organization's…

Q: The sale of stock and the sale of bonds are reported as financing activities. Are payments of…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: In Worldcom and Enron accounting scandal, they classified operating expenses as capital investments…

A: Capital investments: It refers to the investments of funds in the capital assets that have an…

Q: The cumulative effect of the declaration and payment of a cash dividend on a company’s financial…

A: The cumulative effect of the declaration and payment of a cash dividend on a company’s financial…

Q: This is cash flow available for payments to stockholders and debt holders of a firm after the firm…

A: The correct option is (b) free cash flow as after meeting all the necessary investments required to…

Q: Payments to acquire bonds of other corporations should be classified on a statement of cash flows…

A: The purchase of bonds of other corporations is a corporate investment and is therefore included in…

Q: In preparing a statement of cash flow, sale of treasury shares at an amount greater than cost would…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: e Current Liabilities Compute for the Non-current

A: The current asset as,

Q: Which of the following cash flows results from an operating activity?   a. Paying dividends to…

A: Cash flow statement: It is one of the financial statements prepared at the end of a particular…

Q: What are the four different methods of accounting for investment? Please concisely explain the four…

A: As multiple questions are given, we will answer three question. Methods of accounting for investment…

Q: What are the distributions to the stockholders by a firm called?  A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: When a company decides to pay a dividend, explain what makes the payment a dividend as opposed to…

A: Dividends will be declared and paid by the companies to their shareholders. There are two types of…

Q: Which of the following statements is TRUE regarding the equity method?    A. The equity method is…

A: The investor's equity in the associate adjusts in direct connection to the adjustments in the…

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: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: Which of the fo allowing statements is most correct?(a) The balance sheet statement summarizes how…

A: A balance sheet is a statement which provides financial data related to the assets, liabilities and…

Q: For each item below, indicate to which category of elements of financial statements it belongs. a.…

A: Particulars Category a.    Retained earnings. Equity b.    Sales. Revenue c.    Additional…

Q: NU Corporation declares and distributes dividend that is a result of current earnings. How will the…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only…

Q: _______ is comprised of operating cash flow, capital spending, and additions to NWC A. Op cash flow…

A: Free cash flows represent cash amiable to investor after payment of all all operating capital and…

Q: Resources of a company are referred to asa. Liabilities. b. Stockholders’ equity. c. Dividends. d.…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: When an investor uses the equity method to account for investments in common stock, cash dividend…

A: 1. Equity method - Under an Equity method of accounting following entries and changes are made every…

Q: To determine the amount of debt a corporation has, the user should examine: O A. Income statement B.…

A: Introduction: Financial statements: 1 ) Income statement 2 ) Cash flows statement 3 ) Balance sheet.

Q: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash…

A: Q30: Dividend policy determines the ultimate distribution of the firm’s earnings between…

Q: The net effects on the corporation of the declaration and payment of a cash dividend are to 1.…

A: The dividend is paid from the retained earnings of the business.

Q: In general, all of the following are required financial statements to be presented by NPOs except:…

A: NPO's means not for profit organization. The motive of these organizations is not to earn the…

Q: The funds supplied and used by the owner of an enterprise in the expectation that a profit will be…

A: A business raises funds from various sources to make investments and finance operations of the…

Q: Which of the following is classified as a financing activity? Receipt of dividend income   Receipt…

A: The statement of cash flows shows a clear picture of the cash position over a particular period of…

Q: The Management’s Discussion & Analysis (MD&A) section of an enterprise's annual report is to cover…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: n analyzing a company’s financial statements, which financial statement would a potential investor…

A: Introduction:- Financial statements are reports that summarize important financial accounting…

Q: Choose the correct.When an investor uses the equity method to account for investments in common…

A: When an investor uses the equity method to account for investments in common stock, the investor’s…

Q: Based on which of the following concepts, is share capital account shown on the liability side of a…

A: Business entity concept says that both businessmen and business are separate person. Business has…

Q: in what part of the statement of cash flow will "dividend  paid" appear a) non- operating non cash…

A: The cash flow statement is helpful for the stakeholders as they can identify the organization's…

Q: Dividends are recognized in profit or loss only when: a. It is probable that the economic benefits…

A: As per IFRS 9 dividend needs to recognize in profit and loss account when, Entity's right to…

Q: The aggregate cash flows arising from obtaining or losing control of subsidiaries or other…

A: The investment in a company or other business to gain control is an investing activity. So, the cash…

Q: _______ 1. Financial assets at amortized cost shall be measured at fair value through profit or…

A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which financial statement shows that a company’s resources equal claims to those resources? a.…

A: Income Statement conveys a company's ability to generate profits in the current period.

Q: Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense on…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Owner’s equity represents which of the following? a. the total of retained earnings plus paid-in…

A: Owner equity means the amount that belong to the businessmen including the capital , retained…

Q: The shareholders of the company gets share in the profit. This distribution of profit is called as…

A: Shareholders invests their money into the business for which they receive a share of company's…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is