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PtichkaEL [24]
3 years ago
8

All of the following statements are true regarding earnings per common share (EPS) except:

Business
1 answer:
SVEN [57.7K]3 years ago
8 0

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares)  is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

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Social media is which of the following?
Natasha_Volkova [10]

Answer:

D. All of the above

Explanation:

7 0
3 years ago
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Gabby and Gus Malloy recently got preapproved on a loan for their first house purchase. They are speculating on how much they sh
fredd [130]

Answer:

The indicators may be an important factor will be the unemployment rate in the area

Explanation:

The federal tax rate in the that area, may no different that in other area and it can be pay if you have job, the other indicator could be is the producer price index but it can't tell you the economy as well just the productions and finally the CMI consume marginal index tell you more about life style in the zone, so that's why the indicator that is higgher influence is the unemployment rate because that determinate how many people around can pay and be able to grow economy way in the area, so t you can get return on investment

6 0
3 years ago
At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubt
Wewaii [24]

Answer:

  • (a) Prepare the entries to record sales and collections during the period.

Dr Accounts Receivable  $ 800,000  

Cr Sales  $ 800,000

Dr Cash   $ 763,000  

Cr Accounts Receivable   $ 763,000

  • (b) Prepare the entry to record the write-off of uncollectible accounts during the period

Dr Allowance for Uncollectible Accounts $ 7,300  

Cr Accounts Receivable   $ 7,300

  • (c) Prepare the entries to record the recovery of the uncollectible account during the period.

Dr Accounts Receivable  $ 3,100  

Cr Allowance for Uncollectible Accounts  $ 3,100

Dr Cash $ 3,100  

Cr Accounts Receivable   $ 3,100

  • (d) Prepare the entry to record bad debt expense for the period.

Dr Bad Debt Expense $ 20,200  

Cr Allowance for Uncollectible Accounts  $ 20,200

Explanation:

  • Initial Balance  

Dr Accounts Receivable   $ 200.000

Cr Allowance for Uncollectible Accounts  $ 9.000

  • During the period, it had net credit sales of $800,000  

Dr Accounts Receivable  $ 800.000  

Cr Sales  $ 800.000

  • Collections of $763,000  

Dr Cash $ 763.000  

Cr Accounts Receivable   $ 763.000

  • It wrote off as uncollectible accounts  

Dr Allowance for Uncollectible Accounts $ 7.300  

Cr Accounts Receivable   $ 7.300

  • A $3,100 account previously written off as uncollectible was recovered  

Dr Accounts Receivable  $ 3.100  

Cr Allowance for Uncollectible Accounts  $ 3.100

Dr Cash $ 3.100  

Cr Accounts Receivable   $ 3.100

  • Assuming 5% of accounts receivable, the journal entry:  

Dr Bad Debt Expense $ 20.200  

Cr Allowance for Uncollectible Accounts  $ 20.200

  • FINAL Balance  

Dr Accounts Receivable  $ 229.700  

Cr Allowance for Uncollectible Accounts  $ 25.000

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessar to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0
3 years ago
Reuter Bank loaned Sabean Corporation $500,000 in
hammer [34]

Answer:

C) I, II, and III only.

  • I. May demand payment of the full amount immediately from  the sureties when the corporation defaults on the loan.
  • II. May demand payment of the full amount immediately from  the sureties even if Reuter does not attempt to recover any  amount from the collateral.
  • III. May attempt to recover up to $200,000 from the collateral and  the remainder from the sureties, even if the remainder is more  than $300,000.

Explanation:

The bank has several options in this case, depending on the financial position and net worth of the sureties and the corporation. It can decide to collect all the debt directly from them, or collect part of the debt through the collateral property, or it can go after the assets of the corporation, or any type of combination. In this case the bank has three options from which it can collect the debt and it is up to them to decide how they proceed.

4 0
3 years ago
Banks use a large percentage of their checkable deposits for the purpose of __________.
KiRa [710]

Answer:

B. giving loans

Explanation:

The reserve requirement system requires commercial banks to maintain a small fraction of their deposits as a reserve. Only a small percentage of the checkable deposits is required to be held in the banks as reserves. The reserves requirement fractions vary with the monetary policy in place.  

The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.

4 0
2 years ago
Read 2 more answers
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