Answer:
C.
Explanation:
just got it right on Edge
Answer:
The statement which is false is D) .
Explanation:
Income statement helps in assessing the current and past performance of the company, it also helps in predicting the future performance and in assessing the risk present in future in obtaining cash flows. Income statement are prepared through two methods either single step format ( which is used by sole proprietor and partnership firms ) or multi step format ( used by corporations ) .
In the single step format , all the income items are group together and are subtracted from the total cost, while in multi step format , a company breaks all the sources from where the revenues and cost have come, it is used to take out various measures like gross profit, operating profit etc.
A common size statement is one of the type of income statement where each account item is represented as a percentage of total sales value.
Option D is false because discounted operations and extraordinary transactions appear on both the single step and multi step format , these transactions are written as written as footnote below the statement.
Answer:
Some rights of common stockholders are given below.
Voting power on major issues.
Ownership in a portion of the company.
The Right to transfer ownership.
Right to receive declared Dividends.
Opportunity to inspect corporate books, minutes file and other records.
The right to sue for wrongful acts.
Right to attend AGM.
Differences between common and preferred stock
Preferred stock have no voting right while common stock holders have voting right.
When interest rates rise, the value of the preferred stock declines, and vice versa. With common stocks, however, the value of shares is regulated by demand and supply of the market participants.
Common stockholder has right to participate in net asset of company in case of winding up. Preferred stock holder has no such right.
Company profitability have direct effect on wealth of common stockholder but not of preferred stock holder.
Answer: the correct answer is B. Tax depreciation for the period exceeds book depreciation.
Answer:
C.) $10,000
Explanation:
Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is.
Raw materials also known as Inventory and accounts payable are both current assets and current liabilities respectively hence, Incremental investment in working capital if the project is accepted
= $17,000 - $7,000
= $10,000
