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zaharov [31]
3 years ago
9

The issuance of common stock and declaration and payment of cash dividends will result in the following:

Business
1 answer:
jeka943 years ago
8 0

Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.

Explanation:

When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.

The Operating Activities deal with the normal business Transactions and related entries that keep the business running.

Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.

The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.

When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.

Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.

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"the aggregate demand curve is the sum of all demand curves of all goods and services in the economy"
liraira [26]

Answer:

<em>A. True</em>

Explanation:

<em>Aggregate demand</em> refers to the desire and the will to purchase a specified quantity of all the final goods and services produced in a country at a specific price level at different points of time.

An<em> aggregate demand curve is downward sloping</em>, implying increasing demand at lower price levels and decreasing demand at higher price levels.

<em>Aggregate demand = Consumption (C) + Investment (I) + Government Expenditure (G) + Net Exports (NX) = GDP at market price</em>

C represents the consumption goods demand by individuals and households.

I represents the private corporate spending on investments in fixed capital assets like plant and machinery and equipments etc.

G represents the government expenditure for the people like on building parks and dams etc and social assistance programmes.

NX represents the exports minus imports.

Hence, we can see that Aggregate Demand accounts for the measure of all the final goods and services produced domestically in a country and <em>thus is the sum of all demand curves of all goods and services in the economy. </em>  

8 0
3 years ago
Someone may choose to own a car instead of leasing because
HACTEHA [7]

The car can be resold later to make some money back.

3 0
3 years ago
How many of the following items are found on the balance sheet, rather than the income statement?
hjlf

Answer:

B) Six of these items are found on the balance sheet.

Explanation:

Six items fall under assets or liabilities or share capital, which only appear in the balance sheet rather than income statement.

The items are the following;

Accounts receivable

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cash

Plant and equipment

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8 0
3 years ago
In a financial sector, we use ______ to construct financial instruments such as derivatives.
Anettt [7]

Answer:

Predictive models

Explanation:

Predictive modeling uses statistics to predict outcomes. It can be applied to any type of unknown event, regardless of when it occurred.

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3 years ago
The _____ was established by Congress to encourage American firms to focus on quality improvement in order to improve their glob
V125BC [204]

Answer:

The correct answer is: Baldridge Performance Excellence Program.

Explanation:

To begin with, the <em>"Baldridge Performance Excellence Program"</em> is the name given to the program that was established by the United States of America in order to encourage the companies of the country to improve their performance regarding the economy and the globalization that was happening at the time the program was created. It receives its name from the ex secretary of commerce Malcom Baldridge and the award gives to the company selected the recognition of having performance excellence in the its field  

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3 years ago
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