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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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All About Animals has two product​ lines: Cat food and Dog food. Contribution margin income statement data for the most recent y
Tju [1.3M]

Answer:

B. Decrease $19,000

Explanation:

The computation of the amount affect the operating income is shown below

But before that first we need to find the new operating income

Total operating income for Cat Food  $280,000

Less: Fixed costs for Dog Food           ($52000)

Add: rented per year                             $26000

New net operating income                  $254000

Now decrease in net operating income is

= operating income - new operating income

= $273,000 - $254,000

= $19,000

3 0
3 years ago
Avocado Company has an operating income of $108,000 on revenues of $1,054,000. Average invested assets are $505,000 and Avocado
TEA [102]

Answer:

$67,960

Explanation:

Residual income = Operating income - (Average invested assets * Cost of capital)

Residual income = $108,000 - ($500,500 * 8%)

Residual income = $108,000 - $40,040

Residual income = $67,960

Thus, the residual income is $67,960

5 0
3 years ago
For most high-income countries of the world, GDP _________________ over time.
Gwar [14]

Answer:

For most high-income countries of the world, GDP <u>HAS INCREASED GRADUALLY</u> over time.

Explanation:

Both GDP and GDP per capita has increased for almost all high income countries. Actually the only country in the world that was once rich and had a very high GDP and GDP per capita that turned into a developing country (AKA poor country) is Argentina. It is a unique case in all the world, since Argentina had the highest GDP per capita for 2 years (1895 and 1896) and continued to have a relatively high GDP per capita more than 60 years. Then political turmoil and corruption resulting in it falling from number one spot to number 73.

8 0
3 years ago
If a leading canned soup company introduces dozens of new flavors in order to dominate shelf space, the company is most likely t
lesya [120]

Answer:

crowding out new entrants

Explanation:

Based on the information provided it can be said that in this scenario the company is trying to create a barrier to entry by crowding out new entrants. This is a technique in which a company introduces various variations of a product into the market so that consumers are more likely to buy one of their products instead of another company's similar product.

6 0
3 years ago
Discouraged workers are
pochemuha
A worker who has given up on finding a job and is currently unemployed is a discouraged worker, so the answer is D
7 0
4 years ago
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