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kifflom [539]
3 years ago
9

The return on common stockholders’ equity is computed by dividing a) net income less preferred dividends by ending common stockh

olders’ equity. b) net income less preferred dividends by average common stockholders’ equity. c) net income by ending common stockholders’ equity. d) net income by average common stockholders’ equity.
Business
1 answer:
gulaghasi [49]3 years ago
5 0

Answer:

b) net income less preferred dividends by average common stockholders’ equity

Explanation:

Common stock dividends in a company is paid to stockholders after preferred dividends have been removed.

Preference shares are issued to investors with an agreement that they will recieve dividends before other shareholders.

So when calculating return on common stockholder's equity we will first deduct dividend paid to preference share holders.

The income coming to common share holders is now divided by average common stockholders equity to get the return on common stock equity.

Return on equity is usually used as a measure of how efficiently management uses company's assets to generate profits.

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Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clien
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Answer: Please find answers in explanation column

Explanation:

Journal entry for Nexium & Associates

1.Journal to  record Services provided in February.

Date              Account                      Debit                           Credit

March 1      Accounts receivable       $800

               Service revenue                                                    $800

 2.Journal to record purchase of furniture and supplies on account.

March 9      Office furniture         $1,060

               Office supplies             $160

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3.Journal  To record payment made to suppliers, Corner Office Inc.

March 15      Accounts payable          $1,220

                          Cash                                                                  $1,220

4.Journal To record the bill of electricity for  march which is not yet due to be paid till April.

March 23       Electricity expense        $430

           Outstanding Liabilities                                                     $430

5.Journal To record the salary payment to employees.

March 31       Salaries expense                 $850

              Cash                                                                              $850

3 0
3 years ago
25. A firm that uses weighted average process costing has 400 units in Beginning Inventory that are 80% complete. During the per
avanturin [10]

Answer:

Finished goods = $85,800

Ending inventory = $5,280

Explanation:

beginning WIP 400 units

$11,080

8000 units started

$80,000

units finished and transferred out = 8,000 + 400 - 600 = 7,800

ending inventory 600 units

80% complete

equivalent units = 7,800 + (600 x 80%) = 8,280

total costs = $91,080

cost per equivalent unit = $91,080 / 8,280 = $11

Finished goods = 7,800 x $11 = $85,800

Ending inventory = 480 x $11 = $5,280

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2 years ago
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Seasonal allowance would be given
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Which one of the following types of losses is excluded from the determination of net income in income statements? Material losse
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