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3 years ago

All of the following statements are true regarding retained earnings except

Business

1 answer:

Amanda [17]3 years ago

7 0

Answer:

The correct answer is option c.

Explanation:

Retained earnings are the part of the revenue which is left after making payments to investors. In other words, it is the part of net income which is left after paying dividends.

It is calculated by adding net income to or subtracting net losses from the previous term's retained earnings and then subtracting net dividend paid to the shareholders.

It is calculated at the end of each accounting period and the retained earnings beginning balance is usually the retained earnings ending balance from the previous period.

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What are some risks and how do you plan to reduce or eliminate them when having a business

lara [203]

Explanation:

1. Buy insurance: Though insurance is an expenses, it safe guards you and yours business from huge loss.

2. Income from multiple sources: Always do not depend on single income. Make sure that income comes from multiple sources so that you can make your business alive.

3. Have a savings: Entrepreneurs should save money as how much as they can. We cannot know when there will be a profit and when there is a loss. We can only forecast to a particular extent.

4. Limits on Loan: Keep your loans manageable: Do not step into huge loans where it will be difficult for you to manage when there is a sudden lose.

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4 years ago

Entity B bought equipment for $240,000 on January 1, 2021. It estimated the useful life to be 3 years with no salvage value, and

mezya [45]

Answer:

Part 1

Revised depreciation expense = $32,000

Part 2

The entry to record depreciation expense :

Debit : Depreciation Expense $32,000

Credit : Accumulated Depreciation $32,000

Explanation:

Straight line method charges a fixed depreciation charge over the year of use of an asset.

<em>Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life</em>

2021

Depreciation expense = $80,000

2022

Old Depreciation expense = $80,000

New Depreciation expense = Depreciable Amount ÷ Remaining Useful Life

= ($240,000 - $80,000) ÷ 5

= $32,000

7 0

3 years ago

Instructions: Select the correct answer from the drop-down menu.

kotegsom [21]

In his career explorations class, Navid took a personality inventory and he discovered that he is an outgoing person and truly enjoys being around many people.

God bless!

7 0

3 years ago

Read 2 more answers

Which of the following statements is NOT CORRECT? a. An important step in applying the corporate valuation model is forecasting

KIM [24]

Answer:

E. The corporate valuation model discounts free cash flows by the required return on equity.

4 0

3 years ago

Which f the following would likely accompany economic growth

hodyreva [135]

Answer:

Higher inflation, lower unemployment

Explanation:

There are no answer choices but in general, if there is economic growth, the LRAS curve (vertical) shifts right, and higher economic growth means more people become employed. Relating that to the phillips curve, lower unemployment will move up the curve to higher inflation.

3 0

2 years ago