ACC2363_Assignment 8_Q #11 Purchase of an Investment in Retractable Prefered Shares

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#60 Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods? Fair Value Method Equity Method   Question 60 options: a No Effect Decrease b Increase Decrease c Decrease No Effect d No Effect No Effect

Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or paid out as dividends Investors could buy other securities, earn a return Neither Either

Which one of the following is an example of mental accounting? Multiple Choice O associating a security's gains or losses based on its purchase price calculating the gain or loss on a security on a daily basis O computing the amount of tax due on the gain from a stock sale considering the gain realized when a stock pays a dividend comparing the gains and losses on a portfolio to those of the overall market

Which of the following statements regarding close-end investment companies, if any, is correct?1. Close-end funds continually create new shares as new monies are obtained.2. Close-end funds offer price guarantees a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.

choose all that apply

An investor has a long-term investment in stocks. Regular cash dividends received by the investor are recorded as   Fair Value Method Equity Method A reduction of the investment Income Income Income Income A reduction of the investment A reduction of the investment A reduction of the investment

Which of the following accurately refelects how this event affects the company’s finanacial statements? Which option is the best, A, B, C, D

Please answer in CAPITAL LETTER IF IT IS AN INFLOW(I )OR AN OUTFLOW (O)COLUMN 1 , AND COLUMN 2 , IF IT CORRESPONDS TO OPERATINGCASHFLOW(OC),INVESTMENT ACTIVITY CASHFLOW(IC), FINANCING ACTIVITY CASHFLOW ( FC)Example: Reduce marketable securities : I OC ( "I" or "O") AND ("OC", "IC" o "FC" )Activity INFLOW " I" orOutflow "O"              OPERATINGCASHFLOW(OC), INVESTMENTACTIVITY CASHFLOW(IC), FINANCINGACTIVITY CASHFLOW ( FC) 1. Purchase of treasurystock2. Purchase of availablefor sale investment 3. Sale of equipment at aloss 4. Increase in accountspayable 5. Retirement of bonds 6. Issuance of bonds 7. Decrease in accountspayable 8. Increase in inventory9. Loan from bank bysigning a note 10. Increase in accountsreceivable 11. Purchase of equipmentby issuing a note 12. Purchase of land andbuilding. 13. Decrease in accountsreceivable.14. Payment of dividends. 15.…

1. The original issuance of share capital for a consideration less than its par value is least likely called as  options •watered stock •Discount on share capital •Issuance below par or stated value •Reissuance of treasury share below cost 2. At what date should share certificate be issued?  Subscription Authorization Full payment Retirement

Which of the following statements is false?   A.   Mutual funds are pool investor funds to purchase financial instruments and thus reduce risks through diversification.   B.   Initial public offering (IPO) occurs when firm issues stock in the public market for the first time.   C.   The difference between current assets and non-current assets equals to working capital.   D.   Owner’s equity is the residual interest in assets that remains after subtracting an entity’s liabilities.

A closed‑end investment company   Question 11 options:   a)  has a fixed capital structure.   b)  issues new shares when an individual invests.   c)  redeems its shares.   d)  charges a loading fee.

Which arrangement of the different modes of financing appropriately reflects the related cost of capital from highest to lowest?a. new ordinary shares, accumulated profits, new preference shares, long term debt, short term debtb. new ordinary shares, new preference shares, accumulated profits, long term debt, short term debtc. new preference shares, new ordinary shares, accumulated profits, long term debt, short term debtd. short term debt, long term debt, accumulated profits, new preference shares, new ordinary shares.e. none of the above

which one is correct please confirm? QUESTION 7 The cost of equity capital for non-dividend paying stocks can be determined by ____. I. using the Capital Asset Pricing Model II. estimating ke  for comparable dividend-paying stocks in their industry   a. Only statement I is correct.   b. Only statement II is correct.   c. Both statements I and II are correct.   d. Neither statement I nor II is correct.

What are the four major components of stockholders' equity? Explain each component. (Click the icon to view a list of possible explanations.) (Select the four major components of stockholders' equity and the explanation that best describes each component.) 1. 2. 3. 4. Major component Explanations Explanation a. Includes the cumulative record of: unrealized gains and losses on investment securities, unrealized pension costs, and unrealized foreign currency translation gains or losses. b. An amount that will be due within the next reporting period. c. Includes the capital stock sold by the entity at face or par value and amounts received above par value. d. The historical record of earnings that have not been paid out or distributed as dividends to shareholders. e. The amount of cash stockholders withdraw from the company's bank account. f. The amount of the subsidiary's net assets owned by outside shareholders. X

Question 77 For the following, fill in the blanks with the appropriate term(s). For questions that give you two or three choices to choose from, circle the most appropriate. (7.1) The return on an investment comes in two forms: the and the two forms: component gain or loss. The return on investment in common stock comes in gains (or losses).. and gains (or losses) for an investment in common stock arise from in the value of the investment. (7.2) The total percentage return for an investment in common stock is the sum of the yield and the [(Pt+1-P)/ Pt] The gains yield. The dividend yield is defined algebraically as gains yield is defined algebraically as (7.3) The debt represented by T-bills is virtually free of any life. We will call the rate of return on such debt the over its short and we will use it as a kind of benchmark. The difference between the rate of return for a risky investment and the return on T-bills is the for the risky asset. som levo (7.4) An investor's portfolio is…

Which of the following statements is incorrect? Multiple Choice О Purchasing fixed assets through equity financing decreases total asset turnover. Accruing an expense decreases earnings per share. The return on equity ratio increases when treasury stock is purchased. О The purchase of fixed assets will cause the total asset turnover to increase.

What's the best choice?

please answer correct question

2. Explain why increasing financial leverage increases the risk tolerated by shareholders. 3. In your opinion, why do most businesses with financially attractive investment opportunities continue to sustain conservative capital structures? 4. On the other hand, why do you suppose several promising small businesses fail to follow the recommendation in item 3? 5. One determinant of a company's debt capacity is the liquidity of its assets. Name two common ratios that are exclusively intended to measure the liquidity of a company's assets relative to its liabilities. Give their specific use to the company's performance analyzation.

Indicate in which of the three categories Preferred shares issued for cash should appear and whether it is an inflow or an outflow of cash: Multiple Choice Operating inflow None of the other alternatives are correct Financing outflow Financing inflow Investing outflow X