For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a reduction from retained earnings b. an increase in the investments available for sale account c. a reduction in the investments available for sale account d. dividend revenue

Q: Return on Capiatal employed =  O a. Return on Total Assets  O b. Return on Equity  Oc. Return on…

A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…

Q: Questions: 1. Return on total assets 2. Return on common stockholder's equity 3. Book value…

A: 1. Return on total assets = 8.10 %

Q: Which of the following would appear first in a statement of retained earnings?  a. Net income b.…

A: The ending balance of retained earnings can be calculated by adding net income and deducting…

Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…

A: Option A is incorrect The correct statement is  Equity is the residual interest in the assets of the…

Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…

A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…

Q: Comprehensive income includes the following items, except:  Select one: a.  Deferred gains or…

A: Definition: Comprehensive income: The change that occurs in the equity of a company from other…

Q: Retained earnings, as a form of equityfinancing, area. gross earnings.b. profits before taxes.c.…

A: Equity financing: It is a method to raise money for business operations and growth. Retained…

Q: The calculation of earnings and profits is used primarily to determine, which of the following: O a.…

A: Every company will try to increase the profitability from its operations. The company will earn…

Q: 7. (a) When should a long-term investment in common stock be accounted for by the equity method? (b)…

A: Long-term investment is considered as equity method when the investor company owns 20–50 percent of…

Q: S1: In the statement of changes in equity, the effect of the correction of a prior period error is…

A: The statement of change in equity is a statement which shows how the balance of equity changes…

Q: Liquidating dividends are credited to a. income b. Retained earnings c. Investment account d.…

A: Liquidating dividends are issued when the company is considering to be liquidated. These are given…

Q: which of the followings increase the Debt/equity ratio a. increase in current liabilities b.…

A: Debt equity ratio means the amount of debt as compare to $ 1 of equity. Formula for debt equity…

Q: The equity method of accounting for investments requires a.the investment to be increased by the…

A:

Q: eturn on equity b) return on assests c) return on capital

A: Ratio analysis is a method of analyzing a company's liquidity, profitability, and operational…

Q: When the market value of a company’s portfolio of available-for-sale securities is lower than its…

A: Valuation allowance account - Contra asset to record "temporary" market changes in FV for HFT/AFS…

Q: It represents the cumulative balance of periodic earnings, dividend distributions, prior period…

A: Retained earnings is defined as portion of profits which remains available in the company after…

Q: 4. Which of the following items will appear in the statement of changes in equity? a. Extraordinary…

A: Statement of changes in equity is part of financial statements is used to present the amount which…

Q: Which of the following will be subtracted while calculating ending equity under statement of changes…

A: Amount to be subtracted from the value of equity is owners drowning, treasury stock, or buyback of…

Q: For each item below, indicate to which category of elements of financial statements it belongs. a.…

A: Particulars Category a.    Retained earnings. Equity b.    Sales. Revenue c.    Additional…

Q: e between the carrying value of the investment and its related cumulative unrealized gain or…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…

A: a. When return on total assets is considered, interest expense is added to the net income and…

Q: NPAT Less prefernce dividend is used in  O a. Return on Equity  O b. Return on Equity share…

A: A financial ratio is one of the important tools for analyzing a company’s financial statement. There…

Q: Stockholders' equity consists of which of the following? Multiple Choice O O Paid-in (or…

A: Stockholders' equity=Paid in capital+Retained earnings

Q: For investments in equity securities, which will result in recording income based on the income of…

A: a. Held-to-maturity classification: Investments held with the intention to keep until maturity,…

Q: Which of the following may take the form of dividend income and/or capital appreciation?   a. bond…

A: Dividend means amount of income that is generated and distributed to the shareholders. Capital…

Q: Realized gains and losses on investments available for sale are reported a. as a current asset b.…

A: Realized gains and losses on investments available for sale are reported on the income statement…

Q: How is the realised percentage return from investing in a share calculated? A. The cash flows…

A: Realized percentage return is the return which the investors gets over a period after considering al…

Q: Equity equals to a) Capital b) Retained Earnings c) Difference between assets and liabilities d)…

A: As per IFRS 9  Financial instruments standard an equity is an residual interest in company assets…

Q: Dividends in arrears on preference shares are reported in the financial statements as a (an) a.…

A: dividend are paid by the company to its shareholders.both the shareholder whether it is common stock…

Q: 6. What is the effect on the financial statement elements if an SME receives goods or services in an…

A: A share-based payment transaction is a transaction where a firm acquires goods and services in…

Q: . Unrealized gains and losses on investments in trading securities are reported a. as a current…

A: Trading securities are securities that can be sold immediately in the open market. These securities…

Q: Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated…

A: a. Sinking fund is a long term asset and included in the company's Balance sheet as Non current…