Answered: Provide at least three plausible…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 12Q

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Which of the following is not true with regard to the relationship between R&D expenses and the value of the company’s stock shares, as perceived by investors and analysts? Multiple Choice: A.There is no evidence that R&D expenses represent value-relevant information to investors. B. There is a causal relationship between R&D expenditures and future financial benefits. C. A $1 increase in R&D expenditures leads to a $5 increase in the market value of the company’s stock shares. D. Analysts adjust estimates of unrecorded R&D assets which are then used to adjust reported earnings and book values.
Which of the following events would not improve (increase) a company’s return on equity? (Assume all else remains the same.) a. Retirement of long-term debt with cash b. Sale of common stock for cash c. Reduction in operating expenses Select one: b a and b a and c None of the events would improve a company’s return on equity. a c b and c plzz explain properly
6. Fully explain Retained Earnings, Share Capital and Dividends. What arethey? Why are they important to a corporation and an investor? What occurswhen the company experiences negative net income (an accounting loss)?What happens if these losses continue over time?
Please answer with only simple explanation thank you! 1.) A gain or loss from one of the following transactions should not be included in determining income: receipt of interest from bank deposits sale of treasury shares sale of plant and equipment sale of product 2.) Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: debited to APIC to the extent of the credit when the stock was issued debited to retained earnings credited to APIC from previous treasury stock transactions credited to APIC relating to the same issue 3.) Which of the following should be reported for capital stock? the shares authorized the shares issued the shares outstanding all of these 4.) Which of the following would be classified in a different major section of a balance sheet from the others? capital stock…
Which of the following statements is true? a. High liquidity means a company is short on cash and may be unable to pay its debts.b. When a company decides to go public through an IPO, it is typically targeting to sell its shares to only a handful of shareholders. c. If the company has a higher than expected extremely high profit this year, equity holders will benefit more than debt holders as debtholders are the residual claimers for the cash flows of the company.d. In the extreme case, the debt holders take legal ownership of the firm's assets through a process called bankruptcy.e. Equity holders expect to receive dividends and the firm is always legally obligated to pay them.
Which of the following statements are false? (you may choose more than one statement) A The issue of ordinary shares will not dilute ownership of the company B A rights issue will not dilute ownership of the company C A bonus issue is a means of raising finance for the business D A company can decide on the level of dividends they pay out to ordinary shareholders each year
Which of the following is a correct statement concerning earnings per share? Select one: a. Earnings per share can never be a negative number. b. Earnings per share must be reported for all corporations. c. If a company has discontinued operations, at least two EPS amounts must be reported. d. Reported earnings per share is the result of dividing weighted-average shares by net income. e. None of the above.
Each of the following factors may cause a corporation to lower its dividend payout ratio EXCEPT A. the corporation's current and quick ratios are higher than industry average. B. the corporation's earnings predictability is high. C. current common shareholders are unable to participate in new equity offerings. D. the corporation's retained earnings balance is high.
Which of the following is not a way to manage earnings? A. Change the method for bad debt estimation. B. Change the figure for the uncollectible percentage. C. Under the balance sheet aging method, change the past-due categories. D. Change the dates of common stock issuance.
Firm A reports an increase in earnings per share; Firm B reports a decrease in earnings per share. Is this unconditionally informative about each firm’s performance? If not, why is earnings per share so commonly discussed in the financial press? Search modes
Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank depositsb. sale of treasury sharesc. sale of plant and equipmentd. sale of product T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: a. debited to APIC to the extent of the credit when the stock was issuedb. debited to retained earningsc. credited to APIC from previous treasury stock transactionsd. credited to APIC relating to the same issue Which of the following should be reported for capital stock? a. the shares authorizedb. the shares issuedc. the shares outstandingd. all of these

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Provide at least three plausible explanations for a situation where the announcement of a $30 million profit results in a drop in the share price of the company concerned..