Multiple Choice O If a company has total revenues of $80,000, total expenses of $50.000 and dividends of $10,000, they will have net income of $20,000. A company with total stockholders' equity of $45,000 and total assets of $75,000 must have total liabilities of $120,000. O A company with liabilities of $80,000 and stockholders' equity of $50,000 will have assets of $30,000. A company with total stockholders' equity of $120,000 and common stock of $75,000 must have total retained earnings of $45,000.
Multiple Choice O If a company has total revenues of $80,000, total expenses of $50.000 and dividends of $10,000, they will have net income of $20,000. A company with total stockholders' equity of $45,000 and total assets of $75,000 must have total liabilities of $120,000. O A company with liabilities of $80,000 and stockholders' equity of $50,000 will have assets of $30,000. A company with total stockholders' equity of $120,000 and common stock of $75,000 must have total retained earnings of $45,000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Concept explainers
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question
Please Introduction and explanation please and final answer please without plagiarism
Transcribed Image Text:Which of the following statements about financial statement information is correct?
Multiple Choice
O
If a company has total revenues of $80,000, total expenses of $50,000 and dividends of $10,000, they will have net income of $20,000.
O
A company with total stockholders' equity of $45,000 and total assets of $75,000 must have total liabilities of $120,000.
A company with liabilities of $80,000 and stockholders' equity of $50,000 will have assets of $30,000.
O
A company with total stockholders' equity of $120,000 and common stock of $75,000 must have total retained earnings of $45,000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education