Answer:
As a result, the IFRS test is more strict than U.S. GAAP.
Answer:
The dividend payable to the cumulative preferred stock holers in 2021 is $11,550 while the amount payable to common stock holders is $1,450.
Explanation:
Cumulative preferred stock dividends accrue and becomes payable when the reporting entity has favourable cash flows. Rachael Designs plans to make payment of $13,000 dividends in 2021. As the annual cumulative preferred dividend is $3,850 (1,100 shares x $50 x 7%), the amount due over three years will be $3,850 x 3 whcih is $11,550. Thus, out of the proposed cash outflow of $13,000, the amount of $11,550 will be paid to cumulative preferred stock holders while only $1,450 will be paid to the common stock holders.
Answer:
The correct answer is letter "A": Are amounts owed to suppliers for products and/or services purchased on credit.
Explanation:
Accounts Payable is the amount of the total invoices currently awaiting payment by the company. These invoices are from suppliers of products and services that have recently been delivered. They are usually due within 15, 30 or 45 days after receiving the invoice from the vendor.
Answer:
See explanation section
Explanation:
Three reasons could be causing the opening equity balance high, and those are -
1. Issuing more common stock is one of the significant reasons for the company that causes a large amount in the opening balance of the equity account.
2. Issuing excess preference stock to involve the investors can be the other reason to get a higher amount of beginning equity balance.
3. Making much profit for the prior years, and keeping them with the retained earnings without expanding the business can be the third reason.