B)Health because its a doctor and he/she need your medial insursecane
This statement is true. The amount the shareholder has paid
for the stock he owns is the amount of potential loss he can incur as a result
of being an owner in a corporation. The creditor of the company cannot run to
the personal properties of each shareholder. This condition makes the
corporation differ from partnership.
Formula for CI = p (1+r/100)t
Substituting the given
values, we get
Cl = 500 ( 1 + 7 / 100) 8
<span>Cl = 859 .09</span>
<span>The answer is 859.09</span>
The thing that would interest him the most and is an advantage is that if one partner were to make a mistake, he would not be held accountable for it. Unlike the general partnership where everyone gets equal blame for the downfall of a company, in limited liability it is known what falls under whose jurisdiction and if someone causes the company to go bankrupt, the ones whose fault it's not can't get sued.
Answer:
a. Net income - Operating
b. Paid cash dividends - Financing
c. Issued common stock - Financing
d. Issued bonds - Financing
e. Redeemed bonds - Financing
f. Sold long-term investments - Investing
g. Purchased treasury stock - Financing
h. Sold equipment - Investing
i. Issued preferred stock - Financing
j. Purchased buildings - Investing
k. Purchased patents - Investing
Explanation
The statement of cash flows is basically made up of three sections: operating, financing and investing activity.
Statement of cash flows, using indirect method is simply a statement that records the cash inflows and outflows after adjusting for non-cash items.
- Operating activities comprise the adjustment of non-cash items that were already added or subtracted from the net income in preparing the income statement in line with accrual accounting. Then, it records the movement in current assets and liabilities.
- The Financing section comprises those activities that are geared towards improving the capital structure of the company like issuance of stocks, cash dividend payment, etc.
- Finally, the Investing activities are those activities involving purchase of equipment or any other assets that would be used in the course of the business to generate revenue.
