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Stels [109]
3 years ago
10

1. Which of the following is not characteristic of a corporation?

Business
2 answers:
Oxana [17]3 years ago
8 0
<span>1. Which of the following is not characteristic of a corporation?

d. Corporations are required to file federal income tax returns.

2. Characteristics of a corporation include

d. Shareholders who have limited liability

3. One of the main disadvantages of the corporate form is the

b. Double taxation of dividends


4. Under the corporate form of business organization

a. Ownership rights are easily transferred.


5. Those most responsible for the major policy decisions of a corporation are the

b. Board of directors.


6. Stockholders' equity

d. Is shown on the income statement

7. The price at which a stock can be sold depends upon a number of factors. Which statement below is not one of those factors?

b. Investor expectations of the corporation's earning power


8. Which of the following accounts below is reported in the paid-in capital/stockholders' equity section of the corporate balance sheet?

b. Stock Dividends


9. The excess of issue price over par of common stock is termed a(n)

d. Premium


</span>
andreev551 [17]3 years ago
5 0

Answer:

1. b; 2. d; 3. b; 4. a; 5. b; 6. c; 7. c; 8. d; 9. d; 10. c.

11.

April 1st Dr Cash                                                 $220,000

               Cr Common stock                               $50,000

               Cr Paid-up capital - common stock    $170,000

(to record the issuance of 10,000 common shares $5 par value at $22)  

April 7    Dr Cash                                                  $520,000

               Cr Preferred stock                                $250,000

               Cr Paid-up capital - preferred stock    $270,000  

(to record the issuance of 5,000 shares $50 par value at $104)              

Explanation:

1. Cash dividends is not a form of expenses in a corporation, in fact it is the distribution of earnings from corporation to its shareholders; thus not tax deducted.

2. In a corporation, shareholders are only liable to the amount of shareholding they possess. Thus, their liability to the corporation is limited.

3. One of the main disadvantage of corporation is the double taxation system. It is because a corporation and its shareholders are considered to be two separate legal entities so they all have to pay their income tax. This makes the income earned at the corporate is liable for paying corporate tax before it is paid to its shareholders under the form of dividend which is once again being taxed as at individual level since it is one of the income source(s) of the shareholders.

4. Shareholders can easily traded their owneship in a corporation through selling/buying its share without asking permission from the corporation's other shareholders or its management. Moreover, usually the market value of these shares are at a appropriate level for trading at individual level.

5. Though Management runs the daily business activities, Management's activities should be under the direction of other major policy decisions (eg: growth strategy in the next 5 years) of a corporation which is made by Board of Directors.

6. Stock's equity simply includes all the amount that shareholders have been contributed to a corporation under the form of buying/holding its common/preferred stock and the amount of net earnings a corporation retained.

7. The price of a stock is usually valued by assesing its current financial health including its financial position, earnings, risks and prospects. From that, potential stock investors form up an expectation on the stock price.

8.  As explained in 6, the answered is d.

9. Stock issued at price over par value is termed a premium.

10. As there is 60,000 issued and 10,00 reacquired, the outstanding is 60k -10k =50k.

11. Descriptions are put under each journal entry for explanation.

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Barter means exchange since there was no currency back then so the answer  would be D.

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How do the effects of voluntary restraint agreements differ from the effects of a tariff? Tariffs reduce trade by more than volu
Snezhnost [94]

Answer:

Tariffs increase the prices of imports, helping domestic producers, while voluntary restraints do not.

Explanation:

A tarrif is defined as a tax that is imposed by government on goods and services that are imported from another country. Tarrifs are used to discourage imports by increasing their prices compared to locally produced goods and services.

Voluntary restraint agreements is is also called voluntary export restraint. It is a restriction on the amount of goods and services that exporters are allowed to export to other countries. It is also referred to as export visa.

Tarrifs results in increase in price of goods and services while voluntary restraint agreement does not.

3 0
3 years ago
a. She has negotiated a sales price of $46,585 and she has a $15,000 down payment. She is eligible for the full $10,000 cash reb
nirvana33 [79]

Answer: Elaine should take Dealership's financing option.

Explanation:

Option A

Car Sale Price = $46 585

Down Payment = $15000

Interest rate = 0%

Period = 66 months

Value of Dealer Financing = $46585 - $15000 = <u>$31585</u>

Option 2.

Elaine takes the loan to pay for the car

R = 3.24%

Car price = Loan Amount = $46585

Period (n) = 72 months

Value of Option 2 Loan Financing = Loan Amount (1 + r)^n

Value of Option 2 Loan Financing = $46585(1 + 0.0324^/12)^72

Value of Option 2 Loan Financing =  $46585(1 + 0.0027)^72

Value of Option 2 Loan Financing = 56566.482756

Value of Option 2 Loan Financing = $56566.48

Elaine receives a Cash rebate of $10 000

Overall Value of option 2 = $56566.48 - $10 000 = <u>$46566.48</u>

Let us assume Elaine Pays the Down Payment of $15000 AND take A Loan to finance the rest of the Car amount

Car sale price = $46585 - $15000 = $31585

Loan Amount = $31585

Option 2 Loan Financing with down Payment

Option 2 Loan Financing = $31585(1 + 0.0324^/12)^72 + $15000

Option 2 Loan Financing = $31585(1+0.0027)^72 + $15000

Option 2 Loan Financing = 38352.524586 + $15000

Option 2 Loan Financing = $53352.524586

Elaine Receives a Cash Rebate of $10 000

Value of Option 2 with down payment = $53352.524586 - 10 000

Value of Option 2 with down payment = $43352.524586

Value of Option 2 with down payment =<u> $43352.53</u>

When Elaine pays a down payment and takes a loan of $31585, the overall finance is valued at $43352.53, When Elaine takes a loan for the entire car amount the Value of option 2 finance is $46566.48.

Dealership Option Financing Value is $31585. Elaine should take Dealership's financing option

3 0
3 years ago
The Alford Group had 320,000 shares of common stock outstanding at January 1, 2018. The following activities affected common sha
jeka57 [31]

Answer:

1. $2.5 Per Share

2. $0.9375 per share

3. $1.25

Explanation:

According to the scenario, computation of the given data are as follow:-

1. EPS 2018

Earning Per Share(EPS) = Net Income ÷ Weighted Average Outstanding Share of Common Stock

2018:- Weighted Average Outstanding Share of Common Stock = (320,000 × 12 ÷ 12) - (24,000 × 10÷12) + (24,000 × 2÷ 12) + (96000 × 1÷12)

= 320,000 - 20,000 + 4,000 + 8,000 =312,000 shares

2018 Net Income = $780,000

Earning Per Share ( EPS ) 2018 = $780,000 ÷ 312,000 = $2.5 Per Share

2. 2019 EPS:-

Common Stock Share at the Beginning of 2019 =320,000 - 24,000 + 24,000 + 96,000 = 416,000 shares

2019:- Weighted Average Outstanding Share of Common Stock = 416,000 × 2 = 832,000

2019 Net Income = $780,000

EPS = $780,000 ÷ 832,000 = $0.9375 per share

3. The 2018 EPS Be Presented in 2019 Comparative Financial Statement = Net Income ÷ (Weighted Average Outstanding Shares Of Common Stock For 2018 × Stock) )

= $780,000 ÷ (312,000 × 2)

= $780,000 ÷ 624,000

= $1.25

5 0
3 years ago
Which of the following accurately describes
Setler [38]

Answer:

What accurately describes Shareholder's Equity is all of the above, because it's all just simplified/different terms for investment in one another company's business :3

Explanation:

:3

6 0
3 years ago
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