Concept explainers
Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is an inadequate cash available in the company.
Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
To indicate: effect of each of the given transactions on total assets, total liabilities, and
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Chapter 11 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
- When using vertical analysis, we express balance sheet accounts as a percentage of a. Total assets. b. Total liabilities. c. Total stockholders’ equity. d. Sales.arrow_forwardWhich of the following is true about a common size balance sheet? The assets, liabilities, and equities are reported at their market values. The assets, liabilities, and equities are reported as percentages of common stock. The assets, liabilities, and equities are reported as percentages of total assets. O The assets, liabilities, and equities are arranged in the alphabetical order. The assets, liabilities, and equities are reported as percentages of the assets, liabilities, and equities of a competing firm.arrow_forwardEquity equals to: O A. Total liabilities plus current assets O B. Current assets plus non-current assets less total liabilities. O C. Capital plus drawings. O D. Total assets less total liabilities.arrow_forward
- Explain the relation between balance sheet, income statements, and changes in equity statements on a numerical example.arrow_forwardAnalyze the following transactions and identify its effects on assets, liabilities, and capital. Write ? for increase, ? for decrease, NE for No effect and I/D if the effect is only in one major accounts. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.arrow_forwardWhat data flows from the statement of retained earnings to the balance sheet?a. Net incomeb. Cashc. Ending retained earningsd. Assetsarrow_forward
- Equity equals to a) Capital b) Retained Earnings c) Difference between assets and liabilities d) Period net incomearrow_forwardDefine these. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnoverarrow_forwardPerform the calculation for each ratio, and provide an explanation of the result. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnoverarrow_forward
- A-.Create the ratio of fixed assets to long-term liabilities B-. Create the ratio of liabilities to stockholders' equityarrow_forwardEquity equals: C . Assets + Liabilities.arrow_forwardDividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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