Answer:
If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.
Explanation:
The dividend is shown while preparing the retained earning statement. So, it does not affect the net income.
The highly liquid marketable securities does not show a decline in the current assets
If the long term bonds are issued to purchase fixed assets it would show under the long term liabilities and the long term assets rather than the current assets and the current liabilities
Account receivable are reported in the current assets rather than the current liabilities
We know that
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
If the dividend amount is more than the net income so the ending balance of retained earning will decline than its beginning year balance.
<span>If you spend $35 using a credit card you have created, a $35 financial liability for yourself. </span>
Answer:
The answer is given below;
Explanation:
Employee Benefit Expense (5,000+120,000*5%) Dr.$11,000
Accrued Employee Benefits payable Cr.$11,000
As these are the costs that company has to pay for employee retirement and health plans, therefore increase in these expenses will be recorded with corresponding effect to payable.
