Answer: d. Net income is part of the computation for ending retained earnings.
Explanation:
In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.
Retained Earnings are calculated by the formula,
Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends
Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.
Yes. this statement is true.
Why?
Because it is one of the Company's requirements to have a medical certificate before you can be deployed to their company.
If in case you will refuse to follow this order from them, they have all the authority to backout from hiring you to their comapany
The value of item is determined by its utility to the person who is purchasing it. If an item has high utility, then consumers are willing to pay more and will value the product more. If an item has low utility, it will not be very valuable to the person. People value items differently. the old saying that one's man's trash is another's treasure holds true here.
Answer:
The correct option is A, risk averse
Explanation:
Risk aversion is a situation where a person undertaking a business or an investor tries as much as possible to limit exposure to losses by taking drastic steps to ensure the losses do not materialize.
The publisher in this case is conscious of facing the lawsuit that could result from publishing story and has taken a precautionary measure by not even venturing into the publishing ,let alone a lawsuit with substantial amount in damages rears its ugly head.
A risk seeking investor would go ahead with the publishing since success could bring a juicy income
Answer: $80,242
Explanation:
Common stock = Assets - Liabilities - Retained earnings
Assets next year = 256,555 + 55,000
= $311,555
Liabilities remain unchanged.
Retained earnings
= Opening retained earnings + Net income - dividends
= 49,793 + 44,200 - 12,000
= $81,993
Common stock next year;
= 311,555 - 149,320 - 81,993
= $80,242