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3 years ago

If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:_______

Business

1 answer:

lidiya [134]3 years ago

5 0

Answer: b. Equity would increase by $64,679

Explanation:

You included no figures from Baldwin's financials but the above is the only feasible answer.

When more Equity is issued as was the case here, Equity will increase not decrease (option A is therefore wrong).

Retained earnings are the portion of Net Income that are not paid out by the company as dividends and so have nothing to do with stock issuance which renders options C and D wrong.

Option B speaks of an increase in Equity and so is most likely correct.

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Which term describes the art of manipulating people so that they break normal security procedures allowing the release of confid

lisov135 [29]

The term is SOCIAL ENGINEERING.
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3 years ago

Read 2 more answers

Which one of the following parties can sell shares of ABC stock in the primary market? A. ABC company B. Any corporation, other

Alexxandr [17]

Answer:

The correct answer is letter "A": ABC company.

Explanation:

Corporations and governments finance their activities by issuing stock or bonds which are purchased by the public directly from the issuing corporation or government entity. This is considered the primary market, which provides investors their first chance to purchase new security.

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3 years ago

T/F: The theory of purchasing-power parity states that a unit of a country's currency should be able to buy the same quantity of

balandron [24]

Answer: The statement is TRUE.

Explanation: The theory of purchasing-power parity is an economic theory that tries to calculate the exchange rate between the currencies of two countries necessary so that the same basket of goods and services can be purchased in the currency of each one, that is, so that the purchasing power (or purchasing power) ) of both currencies is equivalent.

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3 years ago

You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento

Contact [7]

Answer:

The change in net working capital resulting from the addition of the microbrewery is $5,500 (decrease)

Explanation:

There are 3 key elements of working capital. These are;

Inventory
Accounts payable
Accounts receivable

Given;

increase in inventory = $8,000

increase in Accounts payable = $2,500

Change in net working capital resulting from the addition of the microbrewery = -$8,000 + $2,500

= -$5,500

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3 years ago

Paul’s will creates a General Power of Appointment Trust (GPOA) that distributes income to his wife annually for life and gives

Ivanshal [37]

Answer: D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

Explanation:

General Power of Appointment Trust (GPOA) refers to a power of appointment which is a legally binding provision that's contained in a trust such that the beneficiary possess the authority to alter the beneficiaries of the trust.

In this case, Paul's wife possess the power of appointment to anyone on her behalf. Therefore, The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

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3 years ago