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3 years ago

Which of the following statements is CORRECT?

Business

2 answers:

stealth61 [152]3 years ago

5 0

Answer:

Explanation:

If a company pays more divided than net income, its retained will reduce more than reported in the previous balance sheet. This is beacue dividends are paid out of retained earnings; therefore where the dividend payment is higher than the net income.

zaharov [31]3 years ago

3 0

Answer:

If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.

Explanation:

The dividend is shown while preparing the retained earning statement. So, it does not affect the net income.

The highly liquid marketable securities does not show a decline in the current assets

If the long term bonds are issued to purchase fixed assets it would show under the long term liabilities and the long term assets rather than the current assets and the current liabilities

Account receivable are reported in the current assets rather than the current liabilities

We know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

If the dividend amount is more than the net income so the ending balance of retained earning will decline than its beginning year balance.

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elena55 [62]

The right answer is b 99% right

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3 years ago

In a mutual fund, investors share equally in profits, losses, and management decisions.

sammy [17]

Answer: True

Explanation: A mutual fund is a collective pool of funds provided by a group of individuals to money managers for investment in various securities such as stocks and bonds.

Due to it's collective nature, every shareholder or investor benefits and loses in equal portion - and the expenses of the mutual fund are shared in the expense ratio.

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3 years ago

By wr

pashok25 [27]

Answer:

C. Liabilities

Explanation:

Financial accounting can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time.

Owner's equity is simply what a person owns outrightly and it is also referred to as net worth. It can be defined as the value of financial and non-financial assets owned by a person minus the total outstanding liabilities or debts of that person. Simply stated, owner's equity refers to the difference between the amount a person own (asset) and the amount owed (liability).

Mathematically, net worth is given by the formula;

$Owner's \; equity = Total \; assets - Total \; liabilities$

Making liabilities the subject of formula, we have;

$Total \; liabilities = Total \; assets - Owner's \; equity$

In Financial accounting, liability can be defined as the amount of money being owed by an individual or organization to another.

Simply stated, liability is a debt being owed and as such it usually has "payable" in its account title on the balance sheet.

Generally, liabilities are recorded on the right side of the balance sheet and it comprises of financial informations such as warranties, bonds, loans, deferred revenues, mortgages, account payable etc.

Hence, Assets minus Owner's Equity is equal to Liabilities.

5 0

3 years ago

The Petit Chef Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments and ha

uysha [10]

Answer:

The yield to maturity is 6.45%.

Explanation:

Yield to Maturity (YTM) is the long term yield on the bond based on the assumption that the bond is held till maturity. The Yield to Maturity is calculated using the formula as shown in the attachment,

The coupon payment on bonds is = 1000 * 0.07 = 70

YTM = ( 70 + (1000 - 1038.5)/9 ) / ((1000 + 1038.5) / 2)

YTM = 0.06448 or 6.448% rounded off to 6.45%

6 0

3 years ago

This case explores some issues related to entering a new foreign market and describes the strategies that one UK firm is using t

gizmo_the_mogwai [7]

Answer: Megabus being a late mover in the US, has allowed the company to learn from past mistakes by companies such as Greyhound, who filed for bankruptcy in the mid 90's and who lost most of it's business due to poorly maintained terminals, high prices for fares and unsafe conditions. Mega bus's advantages include fares as lows as 1 dollar, free wi-fi, stylish buses and power outlets. They Can offer these low fares since the company eliminated purchase Windows for tickets, selling tickets online only and by eliminating expensive terminal operations by dropping off and picking up riders at sidewalk stops like public bus operators. There are few disadvantages besides the fact that rising gas prices affect travel and low fare prices affect revenue if quantity is not met .

Advantages - 1. Affordable 2. Pretty scenery 3.You get what you paid for

Disadvantages-1. Uncomfortable 2. It’s Either Freezing or Sweltering 3. Odd People

2. Yes it has own Overwhelming resources and capabilities 3. Train

Explanation:

4 0

3 years ago