Answer:
Yes it is true that a stock dividend does not affect total equity.
Explanation:
A stock dividend is a non cash payment given to shareholders. Instead of cash, additional shares that is equivalent to the earnings that accrue is given to shareholders.
While this may increase the number of shares held, it does not affect total equity.
One of the benefits of stock dividends tax exemption and retained equity which translates to additional investment.
However, the additional; shares created could dilute the share prices.
Answer:
c) $20,000.
Explanation:
The computation of the estimated ending inventory is shown below:
We know that
Cost of goods sold = Beginning inventory + purchase made - ending inventory
And, the
Sales - gross profit = Cost of goods sold
$100,000 - $100,000 × 30% = Cost of goods sold
So, cost of goods sold would be
= $100,000 - $30,000
= $70,000
Now the ending inventory would be
$70,000 = $18,000 + $72,000 - ending inventory
$70,000 = $90,000 - ending inventory
So, the ending inventory would be
= $90,000 - $70,000
= $20,000
Answer:
b. Cognitive Dissonance.
Explanation:
Cognitive dissonance can be defined as the discomfort which is caused by the post-purchase conflict. When consumers buy something, they feel satisfied with their purchase, however, every purchase involves some trade-off and compromises. Customers certainly feel unhappy on acquiring the drawbacks of the bought product and losing the benefits of the products not purchased. Consequently, consumers feel some discomfort and post-purchase dissonance for almost every purchase they make. The same phenomenon can be observed in this scenario where Sheri has enrolled in the MBA program at Macatawa State University and feeling cognitive dissonance afterwards.
Answer:
Part a
Assets = Increase $3,600
Liabilities = Increase $3,600
Equity = No effect
Part b
Assets = Increase $12,300
Liabilities = No effect
Equity = Increase $12,300
Part c
Assets = Decrease $2,700
Liabilities = Decrease $2,700
Equity = No effect
Part d
Assets = Decrease (with decrease)
Liabilities = No effect
Equity = Decrease (with decrease)
Explanation:
Effects of the events on the financial statements are considered for the impart of transaction on the Assets, Liabilities and Equity as above.
The main difference between the short run and the long run is that " in the long run, all inputs are fixed "
Explanation:
Both inputs are variable in the long run while a total of one input is set in the short run.
For example, rent can be set short-term but long-termly differently.
The main difference between long-term and short-term expenses is that there are neither long-term fixed nor short-term influences.
In the long term, the overall price point, negotiated wages and aspirations are fully adapted to the state of the economy.
Depending on variable costs and the production volume, short-term costs are increasing or declining. If a company controls the short-term costs over time, then the expected long-term savings and goals are more likely to be accomplished.
