Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
Answer:
C. phase out all trade and tariff barriers among Canada, Mexico, and the U.S
Explanation:
The North American Free Trade Agreement (NAFTA)
This agreement creates a bloc of trade for the region, Canada, Mexico and the US.
As state on "C" It result in the elimination or reduction of barriers to trade and investment between the countries.
It will be replaced in the following year by the United States–Mexico–Canada Agreement (USMCA)
But NAFTA will keep working until this new agreement is finished.
Answer:
$15,000
Explanation:
In leo company books, the gain recognized would be $75,000 - $60,000 = $15,000 as they are selling the land $15,000 more than it initially cost them
Answer:
The incremental cost is $198,000
Explanation:
Given;
Current cost per unit to manufacture = 66,000 units
Direct materials = $5.00
Direct labor= $9.00
Overhead = $10.00
Total cost per unit = $24.00
Incremental costs = $1,254,000 - $1,056,000 = $198,000
<u>Explanation:</u>
Business environment refers to the factors pertaining to internal or external to the organisation that affects the working of the organisation. The environment provides threats and challenges for the business organisations. So the business organisations should know about their environment to smoothly function the business activities.
Economic environment means the economic situation in a country that affects the business and consumer behavior in a country. The performance of the organisation can be affected by the buying pattern of the consumers. Economic environment is an external and macro environment factor which affects the business.
