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muminat
3 years ago
13

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to increase total

expenses and total liabilities. decrease total liabilities and stockholders' equity. increase total assets and stockholders' equity. decrease total assets and stockholders' equity.
Business
1 answer:
ankoles [38]3 years ago
7 0

Answer:

decrease total assets and stockholders' equity

Explanation:

At the time of declaration a liability increases, against dividend expense.

At the time of payment that liability is settled by paying in cash.

Thus net effect of both transactions is decrease in cash and increase in expenses.

If we carefully analyse the options, then

we get that there is decrease in assets in the form of cash and decrease in equity as expenses decrease retained earnings which are owner's equity.

Therefore, correct option is

decrease total assets and stockholders' equity.

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On December 31, Strike Company sold one of its batting cages for $24,440. The equipment had an original cost of $244,400 and has
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Answer: There was no gain or loss on the sale of this asset.

Explanation: In order to calculate how much profit/loss was made on an asset when it is sold, you have to take the cost price of the asset, and deduct the accumulated depreciation of the asset up to the date of sale. This is known as the book value of the asset, and shows how much it was worth on the day it was sold.

Cost price is the purchase price that the asset was worth on the day it was bought by Strike Company. Accumulated depreciation is the total reduction of the worth of an asset periodically, because of wear and tear.

Book value is calculated as:

Cost price: $244,400

- Accumulated depreciation: ($219,960)

= Book Value = $24,440

However the asset was sold for $24,440. This means that Strike Company sold this asset at its pure value, which is the book value. Thus forfeiting the chance to make a profit, or a loss.

7 0
3 years ago
Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year. a. Wha
Dafna11 [192]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year.

First, we need to determine the final value with the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Then, we can calculate the present value with the following formula:

PV= FV/(1+i)^n

A)i=11%

FV= {15400*[(1.11^9)-1]}/0.11

FV= $218,125.17

PV= 218,125.17/(1.11^9)= $85,270.53

B) i= 6%

FV= {15400*[(1.06^9)-1]}/0.06

FV= $176,966.27

PV= 176,966.27/(1.06^9)= $104,746.06

C) i= 16%

FV= $269,785.02

PV= $70,940.77

3 0
2 years ago
When price decreases, quantity increases. Price elasticity of demand measures how much ________.a. The price decreasesb. The pri
erastova [34]

Answer:  

Price elasticity of demand measures how much the quantity increases when price decreases.

Explanation:

Price elasticity is the percentage change in the quantity demanded, divided by the percentage change in the price.

If the percentage in the change in the quantity demanded is bigger than the percentage in the change of the price we talk about elastic demand.

If the percentage in the change in the quantity demanded is smaller than the percentage in the change of the price we talk about inelastic demand.

And if he percentage in the change in the quantity demanded is excatly the same than the percentage in the change of the price we talk about unit elastic demand.

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3 years ago
Firms that spend the greatest percentage of their revenue on advertising tend to be firms that sell
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Answer:

The correct answer is D

Explanation:

Product differentiation is the term which is described as the strategy of marketing which focuses on showing off the differences among the product or the competition and the business.

So, the firm or business who spend the highest percentage of the revenue on advertising the product are the firms which sell the highly differentiated goods.

8 0
2 years ago
f pat and chris each spend half their time on each task then: the outcome will be efficient they will plant more bulbs
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false pat and chris each spend half their time on each task then: the outcome will be efficient they will plant more bulbs

<h3>What is efficient?</h3>

Efficiency is the ability to avoid wasting materials, energy, efforts, money, and time while doing something or producing a desired result. In a broader sense, it is the ability to do things well, successfully, and efficiently.

The work efficiency formula is efficiency = output / input, and the result can be multiplied by 100 to calculate work efficiency as a percentage. This is used in a variety of energy and work measurement methods, such as energy production and machine efficiency.

Business efficiency refers to how much a company or organization can produce given the time, money, and resources available.

To know more about efficient follow the link:

brainly.com/question/26152499

#SPJ4

3 0
1 year ago
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