Dividends

Q: From a practical point of view, according to financial compliance, dividends must be: a)…

A: Dividend= profits distributed to the shareholders

Q: Equity

A: We know that  Assets = Liabilities + ShareHolders equity  That is assets of a business are made up…

Q: declare the dividend

A: Proprietors and speculators in independent companies get an incentive from their possession stakes…

Q: What does the retained earnings account measure? a) Cash held by the company since its inception.…

A: Retained earnings are defined as the part of earnings that are retained by the company. These…

Q: What is profit, how is it earned? Explain its effect on businesses.

A: The income statement is prepared to find net income or losses incurred during the period. This is a…

Q: n which of the following cases will the business have Net profit ? a. Expenses are less than revenue…

A: Solution: "Expenses are less than revenue" in this case business will have net profit.

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: What is the primary purpose of the income statement? A) To report the company's cash flow activities…

A: The income statement is a crucial financial report that provides a detailed overview of a company's…

Q: 1. What are the two main parts of the body of the income statement known as? Expenses Capital Assets…

A: Lets understand the meaning of income statement. Income statement is a statement which shows the…

Q: One major component of Equity is Retained Earnings. What does Retained Earnings represent? Group of…

A: Retained earnings are undistributed profits of the company and the same is retained for future…

Q: On a corporate income statement, income from continuing operations a. will exceed net income. b.…

A: Income from continued operations is the income which is calculated after subtracting operating and…

Q: Which component of the statement of owner's equity represents the accumulated profits or losses of…

A: Net income: This option is incorrect because net income represents the profit or loss for the…

Q: How does net income affect the operation of the business?

A: The bottom line of income statement is net income. It’s the outcome of sales and gains minus the…

Q: The statement of financial position is a financial statement that shows both the gross profit and…

A: The statement of Financial Position shows what a company owns and what a company owes to  the…

Q: Which financial statement would indicate whether a business made a net income (net profit) or…

A: Solution: Income statement is the financial statement which reports revenue earned, expenses…

Q: It represents the cash or other assets withdrawn from the business by the owner for the personal…

A: Dividends are distribution of profits of a company to its shareholders. Hence, option C is wrong.

Q: A financial document that indicates the success or failure of a business trading .over a period of…

A: Answer : An Income Statement

Q: What is Return to Equity? Profit paid to a single owner of a small business Profit paid to…

A: Correct option is 2- Profit paid to stockholders, (i.e. to the multiple owners of a business)

Q: Multiple Choice revenues minus expenses.

A: Revenue : Revenue is the result of sale of goods , exchange of assets, interest ,dividend earned on…

Q: For money to accrue to a business, it needs to: a.Have been earned by the business b.Have been…

A: As per revenue recognition principles, if a company follows accrual method of accounting then…

Q: Explain the effect of operating profitably on the balance sheet of a business entity.

A:

Q: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: ne manager wanted to knou nuch liability the company o Which financial statement gi hat information?…

A: Explanation: Balance sheet shows the assets and liabilities of the company. Profit and loss…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…

A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…

Q: How do dividends affect owners’ equity? Are they treated as a business expense? Explain.

A: Dividends are referred to those returns which are provided to the shareholders, or stockholders of…

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: In the field of accounting, "owner's equity" refers to:   Question 5 options:   An owner's…

A: Introduction: Business entity concept: According to this owner and the business are two separate…

Q: The following statement suits best the definition of ASSETS: O a. The assets are expenses incurred…

A: Assets are considered as the resources of the business used to run the daily activity of the…

Q: The......of a business is the amount of income A-Revenue B-venture C-assest D-fund

A: A business is described as an organization or enterprising entity engaged in commercial,…

Q: revenue may be defined as : a- increase in assets from all sources  b- the amount of capital…

A: Revenue is the income generated by a company using the assets employed by it in the normal course of…

Q: One of the financial statements is a balance sheet.  The balance sheet reflects the assets of the…

A: Given The Balance Sheet is one of the financial statements.

Q: 1. The economic benefit (increase in assets) gained by providing goods or services to customers. 2.…

A: 1. The economic benefit (increase in assets) gained by providing goods to customers.The answer is…

Q: If a business earns a Net Income it means: * O Capital > Revenue Revenue Expenses

A: The question is based on the concept of Financial Accounting.

Q: Liabilities and stockholders' equity are: O increases in assets resulting from profitable operations…

A: Economic resources refers to resources which are used to produce goods and services So, Economic…

Q: Does a statement of cash flows or an income statement best mea-sure the profitability of a…

A: Statement of cash flows: Statement of cash flows reports all the cash transactions which are…

Q: What are the total assets ? what is the net worth? how much does the company owe? whag is the…

A: The balance sheet shows the Assets and liability position at the end of year. The assets create…

Q: In which of the following cases will the business have Net profit ? O a. Expenses are equal to…

A: Net profit can be earned if there is revenue exceeding the expenses.

Q: What are dividends in accounting?

A: Accounting is the process of recording and summarizing the transaction in the books of accounts.…

Q: The value of goods or service sold by a business during a particular period of time is known as ...…

A: Following are the definitions: Income statement: It is the statement that shows the income and…

Q: Which among the following statements shows the financial position of a business as on a particular…

A: The income statement determines the net income of the business by subtracting the total expenses…

Q: Net income is​ ________.

A: The correct answer is: (B) Not cash flow  Net income is the total amount of money a business has…

Q: Why is the Equity of an owner shown in the Liabilities and not in the Assets on a companies…

A: Lets understand the basics. Financial statement is divided into main three types of heads which are,…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is