Answer:
False
Explanation:
Green's distribution of $50,000 in to its sole shareholder at the end of the year should be treated as a dividend because Green's total earnings and profits for the year were $100,000.
A distribution from a corporation to a shareholder can only be treated as a dividend when the corporation made a profit during the current year, or has positive accumulated earnings and profits.
Answer:
analogous
Explanation:
both green and yellow are a part of analogous
Answer:
$357,500
Explanation:
Cash flow from operating activities on the statement of cash flows:
= Net income + Depreciation Expense - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expense - Decrease in accounts payable
= $350,000 + $26,000 - $3,000 - $5,000 + $2,500 - $13,000
= $357,500
Therefore, the net cash flow from operating activities is $357,500.
The answer is b-savings back
Answer:
C. Spreading risk by investing your money in a variety of funds and investment options.
Explanation:
To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.
Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.