Bennoit Corporation paid dividends totaling€295,000 to its shareholders. This transaction willdecrease assets and:a. Have no effect on the accounting equation.O b. Decrease liabilities by €295,000.O c. Increase expenses by €295,000.d. Decrease equity by €295,000.The accounting process involves all of thefollowing exceptO a. Analyzing and interpreting financialreports.b. Recording non?quantifiable economicevents.O c. Communicating financial information tousers by preparing financial reports.d. Identifying economic events that arerelevant to the business.Which of the following would not be consideredan external user of accounting data for the GHICompany?a. Creditors.b. Customers.c. Management.d. Taxing authority representative.

Bennoit Corporation paid dividends totaling €295,000 to its shareholders. This transaction will decrease assets and: a. Have no effect on the accounting equation. b. Decrease liabilities by €295,000. O c. Increase expenses by €295,000. d. Decrease equity by €295,000.

Bennoit Corporation paid dividends totaling €295,000 to its shareholders. This transaction will decrease assets and: a. Have no effect on the accounting equation. b. Decrease liabilities by €295,000. O c. Increase expenses by €295,000. d. Decrease equity by €295,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 1MCQ: Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a...

See similar textbooks

Similar questions

5. true? Which of the following statements concerning the income statement is not It can be called the profit and loss statement The heading must indicate the length of time the report covers It shows the change in the entity's cash balance for the period It is divided into two sections, income and equity C and D are both not true ABCDE A. B. C. D. E.
Which of the fo allowing statements is most correct?(a) The balance sheet statement summarizes how much the firm owns as well as owes for a typical operating period.(b) The income statement summarizes the ne1 income produced by the corpora1ion at a specified reporting date.(c) The cash now statement summarizes how the corporation generated ca-,hduring the operating period.(d) None of the above.
Give short answers to questions
Explain whether each of the following balance sheet items increases, reduces, or has no directeffect on a company’s ability to pay its obligations as they come due. Explain your reasoning.a. Cash.b. Accounts Payable.c. Accounts Receivable.d. Capital Stock.
Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Bramble Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Vaughn Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.) (a) Fair Value Method (b) Equity Method Transaction Investment Account Dividend Revenue Investment Account Investment Revenue 1. At the beginning of Year 1, Bramble bought 30% of Vaughn's common stock at its book value. Total book value of all Vaughn's common stock was $900,000 on this date. 2. (a) During Year 1, Vaughn reported $66,000 of net income. (b) During Year 1, Vaughn paid $30,000 of dividends. 3. (a) During Year 2, Vaughn reported $33,000 of net income. (b) During Year 2, Vaughn paid $19,500 of dividends. 4. (a) During Year 3,…
1) Which of the following statements does NOT apply to financial accounting? a) is subject to GAAP b) Is primarily meant to provide information to stockholders and creditors. c) Is subject to regulation by external bodies d) Emphasizes data that is verifiable e) Provides data on the market value of a company's assets. 2) Please see the image attached and show the work so I can understand how you did. Hilton Corporation had Sales Revenue of $1,105 for the month. Marketing Expenses for the month were $60 and Administrative Expenses were $50. Inventory Classification Direct Material Work in Process Finished Goods 3) a) $590 b) $830 c) $640 d) $240 e) $285 Direct materials used for the month are? Show Transcribed Text During the month, Hilton purchased $250 of Raw Material and spent $400 on Direct Labor. Other manufacturing costs such supervisory salaries and utilities were $90 and Plant and Equipment Depreciation was $100. 1st Day of Month $60 120 Inventory Classification Raw Material…
Analyze the following transactions and identify its effects on assets, liabilities, and capital. Write ? for increase, ? for decrease, NE for No effect and I/D if the effect is only in one major accounts. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Accrual-basis accounting records both cash and noncash transactions when they occur. Generally accepted accounting principles require companies to use cash-basis accounting. The key elements of accrual-basis accounting are the revenue recognition principle, the expense recognition principle, and the historical cost principle.
What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
1.Assets = Liabilities + (Owner, Capital - Owner, Withdrawal + Revenues - Expenses)2. What is a company's financial obligation that results in the company’s future sacrifices of economic benefits to other entities or businesses?3. What is considered as the residual claims on assets?4. What do you call the chronological record of all the financial transactions of a business which is also known as the book of original entry?5. TRUE or FALSE? Debit means increases while credit means decreases.6. What accounting principle dictates that companies recognize revenue as it is earned, and not when they receive payment?7. Which of the four accounts is NOT a liability? Unearned revenue; Accrued expense; Accounts payable; Accounts receivable8. The following accounts must be closed at the of the accounting period, EXCEPT: Equity, revenue, expense, income summary9. What inventory system continuously estimates the inventory based on the running electronic…
A. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?