Answer:
The options that are true regarding dividends include:
- A stock dividend increases the number of outstanding shares.
- A stock dividend commonly indicates management's confidence that the company is doing well.
Explanation:
A stock dividend is a payment to shareholders that is made in shares rather than in cash.
Once investors receive stock dividends, the number of their shares will increase. this validates the first statement
Secondly, stock dividends have a tax advantage for the investor. The share dividend, like any stock share, is not taxed until the investor sells it unless the company offers the option of taking the dividend as cash or in stock.
The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance thereby indicating management's confidence in the company is well-being.
Answer:
R 85400
Explanation:
The amount of depreciation will be the current amount minus the amount after three years.
amount after threes is calculated as follow
A= P x( 1+ r) ^n
Wheres A: amount after 3 years
P : principal amount =r 175,000; r = -20%, n is number of period
A = 175,000 x ( 1- 0.2)^3
A =175,000 x(0.8)^3
A = 175,000 x 0.512
A=89,600
Depreciation =175,000 - 89,600
=R 85400
Disclosed a contingent liability based on a pending lawsuit the cash flows from operating activities will remain the same.
Disclosed a contingent liability based on a pending lawsuit the cash flows from operating activities will remain the same as contingent liability is recorded as footnotes to financial statements. They have no cash flow till the period the event occurs of which they are contingent.
Operational enterprise activities include inventory transactions, interest payments, tax payments, wages to personnel, and payments for rent. some other shapes of cash flow, which include investments, money owed, and dividends are not included in this phase.
A contingent liability is a liability that may or might not occur. This means the contingent legal responsibility will rely on destiny events. Long-time liabilities are predicted to pay through the years or the timeframe is extra than 12 months. However, short-term liabilities are predicted to pay within a year.
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Answer:
Please see attached explanations
Explanation:
a Incremental profit would be
= $160,000 - $100,000
= $60,000
b. The firm's break even point will increase by 27.8 units if it makes the change.
c. The new situation would have more business risk than the old one due to;
• Increase in fixed costs
• Business risk will also increase in new situations due to increase in break even point.
Management students may not immediately become managers, but studying management can help you<u> understand how </u><u>organizational decisions</u><u> are made</u>
This is further explained below.
<h3>What are <u>
organizational decisions</u>?</h3>
Generally, The process by which a single organizational unit or several organizational units come to a decision on behalf of the organization is referred to as organizational decision making.
The unit responsible for making decisions might be as limited as a single person, such as a manager, or as extensive as the full membership of the organization.
In conclusion, Students who major in abnormal psychology often fall victim to this mental state, in which they mistakenly assume that they are afflicted with the illness that they are researching.
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