Answer:
Explanation: It implies that no cost of floatation is associated with he issuance of common stock and the cost of retained earnings is less than the cost of new outside equity capital. By this, a firm shouldn't be advised to pay dividends as it needs to exhaust all of her retained earnings before raising capital since the cost of retained earnings is lower than the cost of issuing new shares. The firm should opt to raise more capital by issuing new stocks only after it has exhausted all its retained earnings. Thus, issuing new stocks and paying dividends during the same year results in unnecessary incurrence of costs of capital and is considered to be irrational.
Answer: A shared domain
Explanation: A domain name refers to a registered address whereby the website of an individual or organization can be accessed. In simple terms, the name of a website is called the domain name. They are used in the identification of web pages and IP addresses. Domain sharing capabilities offer the opportunity to split users of a domain across multiple servers. When one decides to make portion of one's domain name available to others, such act is called domain sharing. This way a certain domain name will possess more than one user account.
Answer: D
Explanation:
Total assets changes when an account is written off under the allowance method.
Answer:
b. Paid cash dividends of $13,200 to common stockholders.
Explanation:
Cash flows from financing is the cash gained or spent from raising capital or paying it's investors. It primarily measured flow of cash between a business and its owners and creditors.
Includes the following activities: paying dividends, obtaining loans, issuing and selling stock, repurchasing stocks, and paying long-term debt.
Positive cash flows from financing means the firm gets inflow of cash while negative flow means firm gives out cash.
Paying dividends to stockholders is a financing activity that involves outflow of cash from the firm to its owners.
Answer: <u>"A. Just-in-time inventory"</u> is a system for managing demand-dependent inventories that minimizes the inventory holdings of the firm at any given time.
Explanation: The Just in time system is an inventory maintenance policy at the lowest possible level where suppliers deliver just what is necessary at the time necessary to complete the production process. In this way, we seek to reduce the costs of maintaining higher inventories, purchasing costs, financing of purchases and storage.
