The Retained Earnings account for a profitable, growing company that has been in business for several decades are valuable to predicting future dividend declarations? Multiple Choice O Yes because Retained Earnings is money available to be distributed to shareholders. No because Retained Earnings is not money available to be distributed to shareholders. Dividends declaration depends on cash available only. None of the other alternatives are correct Retained Earnings and Dividends declarations are totally unrelated.

The Retained Earnings account for a profitable, growing company that has been in business for several decades are valuable to predicting future dividend declarations? Multiple Choice O Yes because Retained Earnings is money available to be distributed to shareholders. No because Retained Earnings is not money available to be distributed to shareholders. Dividends declaration depends on cash available only. None of the other alternatives are correct Retained Earnings and Dividends declarations are totally unrelated.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 4Q

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Similar questions

Which of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these
Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity. cause a decrease in stockholders' equity. have no effect on total stockholders' equity. cause an increase in the dividends payable account.
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
Which one of the following methods is not derived from the principle that the value of a stock is the present vaiue of future dividends. O Discounted cash flow method O Discounted dividend method O Abnormal earnings O Price multiple method O Abnormal earnings growth
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? Please, don't copy the answer from the book, explain with your words.
If a firm records positive net income for the year and also pays a cash dividend then: Multiple Choice The balance sheet equation must increase Retained earnings must increase None of these Retained earnings must decrease The balance sheet equation must decrease
TB MC Qu. 10-139 (Static) Why doesn't stockholders' equity equal the... Why doesn't stockholders' equity equal the market value of equity? Multiple Choice Stockholders' equity usually does equal the market value of equity. It's due to incorrect entries prepared by accountants. Investors tend to incorrectly price the market value of equity. It's related to the use of historical cost to report many long-term assets and the expensing of value-generating costs such as research and development and advertising.
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 is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders’ equity? a. Preferred dividends are not paid from net income. b. Preferred dividends are not a part of stockholders’ equity. c. Preferred dividends are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation. d. Preferred dividends will reduce the amount of income available for distribution to common stockholders.
Which of the following is NOT an acceptable basis on which to measure an expense? A cash outflow. O A pro rata measure. O An estimation. O All of these options are acceptable. O An invoice price. Which of the following is a likely explanation as to why preparers would choose to deliberately understate the reported profit of a listed entity? O To reduce investors' expectations of future earnings. O To decrease the entity's weighted average cost of capital. To reduce the entity's tax liability. O To satisfy the qualitative characteristic of faithful representation. O All of these are likely explanations why preparers would deliberately understate the reported profit.
In a strong-form efficient market, accounting announcements: will impact stock price only if it is related to cash flows will impact stock price if it involves new public information will imoact stock brice if it it affects a firms ability to borrow funds will no impact stock price
What does it mean when a company has zero net income but its stock price has increased? How do you recognize the change under the equity method?