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krok68 [10]
3 years ago
9

Can you breifly explain why stockholders' investment and revenues increase stockholders' equity, while dividends and expenses de

crease stockholders' equity.
Business
1 answer:
Scilla [17]3 years ago
5 0
From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.

Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.

Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).
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Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
Evgesh-ka [11]

Answer:

 7,780 units

Explanation:

When using the weighted-average method in its process costing system we are only interested in the equivalent units of the output in that particular process. Outputs being Units completed and transferred and units in ending work in process.

Units in Ending Work in Progress calculation

Units in Ending Work in Progress = 1,300 units + 8,300 units - 6,800 units

                                                       = 2,800 units

Conversion Costs

Units completed and transferred (6,800 x 100%)             6,800

Units in Ending Work in Progress (2,800 x 35 %)                980

Equivalent units of Production  - Conversion Costs         7,780

Conclusion

the equivalent units for conversion costs for the month in the first processing department are   7,780 units

3 0
3 years ago
Orion Flour Mills purchased a new machine and made the following expenditures:
GrogVix [38]

Answer:

Dr Equipment 62400

Dr Prepaid Insurance 500

Cr Cash 2900

Cr Accounts Payable 60,000

Explanation:

Preparation of the journal entry to Record the above expenditures for the new machine.

Dr Equipment 62400

Dr Prepaid Insurance 500

Cr Cash 2900

Cr Accounts Payable 60,000

(62,400+500-2900)

Equipment:

Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =

Total cost 62400

Cash:

Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900

8 0
2 years ago
Prior to the iconoclasm of the eighth century, icons were accepted as __________________.
Vlad [161]
Here is the answer: Before the iconoclasm of the eighth century occurred, icons were recognized as INTERMEDIARIES BETWEEN WORSHIPPERS AND THEY REPRESENTED HOLY FIGURES. Iconoclasm involves the belief that these holy figures or monuments should be destroyed based on religious beliefs too.
7 0
3 years ago
How should sbs classify the spare parts that it expects to use within one year — as inventory or as a prepaid/other current asse
ahrayia [7]
Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.
8 0
3 years ago
g Experts suggest that firms wanting to globalize through e-commerce must first localize, which means firms need to ________. A.
Ludmilka [50]

Answer:

C. modify their products and services to meet the needs and interests of local cultures

Explanation:

Globalization is a phenomenon that enables companies to generate increased profitability and conquer new markets by implementing their businesses in other countries. Therefore, a company that wants to go global through e-commerce needs to modify its products and services to meet the needs and interests of local cultures, as entering an international market requires planning and structuring organizational processes that take into account that each country has their social and cultural particularities, their tastes and needs that are different from each other, which requires an adaptation of a company's products and services, so that they are well accepted and meet the specific needs of that market.

It is then necessary to research, plan and implement a global business strategy that takes local differences into account and includes them in its processes and values.

4 0
2 years ago
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