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mr Goodwill [35]
3 years ago
8

The two main sources of stockholders' equity are a.net income retained in the business and dividends paid b.investments by stock

holders and dividends paid c.investments by stockholders and net income retained in the business d.investments by stockholders and purchases of assets
Business
1 answer:
Lady_Fox [76]3 years ago
7 0

Answer:C - investments by stockholders and net income retained in the business

Explanation: Stakeholders equity are the investments made by investors into the business plus any profit retained by the business.

Stakeholders equity can also be said to be the gross profit less all liabilities for a specified period. This also includes assets that the company owns.

It does not include dividend issued for the period as dividend is also a liability to the company.

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4 0
3 years ago
Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Bos
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Answer:

2016: $300 million; 40%; $60 million

2017: $450 million; 60%; $90 million

Explanation:

Total costs:

= Costs incurred in 2016 + Costs incurred in 2017

= $240 + $360

= $600

In 2016:

Percent of total excepted costs:

= Costs incurred in 2016 ÷ Total costs

= $240 ÷ $600

= 0.4 or 40%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.4 × $750 million

= $300 million

Income = Revenue recognized - Costs incurred in 2016

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In 2017:

Percent of total excepted costs:

= Costs incurred in 2017 ÷ Total costs

= $360 ÷ $600

= 0.6 or 60%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.6 × $750 million

= $450 million

Income = Revenue recognized - Costs incurred in 2017

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8 0
3 years ago
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