Answer: d. a. and b. only.
Explanation:
Free Cashflow to a company is cash that is available to the company after it has finished paying off all expenses for the period. This money can then be used to pay out dividends or engage in stock repurchasing.
Taxes are not paid from Free cash as they are an income expense. Free cash is only acquired after the taxes have been paid off.
The only answer here that would appear in the stockholders' equity section is retained earnings. Having a net loss in the income statement would mean there is less earnings to retain.
Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
Answer:
Disruptive innovation.
Explanation:
Disruptive innovation is one that creates the way a market operates, that is it creates a new market and disrupts the old one. Existing firms and products are displaced.
In this instance when Futura Inc. introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile, it introduced a product that will cause disruptions in the current automobile industry.
Although there was challenges of frequent repairs, this was eventually resolved.
Answer:
B) DR Cash 128,000 CR Treasury stock 96,000 CR Paid-in capital from treasury stock 32,000
Explanation:
Based on the information given the correct journal entry to record the resale of treasury stock is to Debit Cash $128,000 Credit Treasury stock $96,000 and Credit Paid-in capital from treasury stock $32,000
DR Cash $128,000
(4000*$32)
CR Treasury stock $96,000
(4000*$24)
CR Paid in capital in excess of par $32,000
(4000*$8)
