When recording dividends received from a stock investment accounted for using the equity method, which of thefollowing statements is true?a. Total assets are increased and net income is increased.b. Total assets are increased and total stockholders’ equityis increased.c. Total assets are decreased and total stockholders’equity is decreased.d. Total assets and total stockholders’ equity do notchange

Q: Name the two main components of stockholders’ equity. Describe the main sources of change in each…

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are…

Q: We should report Dividends as:-  Select one: a. financing activity-inflow b. financing activity-…

A: Cash flow statement is the summary of inflow and outflows of cash in 3 categories of operating,…

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

Q: hether entry is debit (DR) or credit (CR).  1. Declared stock dividend based on market price or…

A: dividend is much part of profit that is declared and paid to the shareholders of the company whether…

Q: Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The…

A: A. A stock split: No change in total equity   B. Recording Revenue: Increase in total equity   C.…

Q: credit to Investment in Peas Company.

A: Under equity method, the journal entry for receipt of cash dividend is Cash  A/c  Dr  xxxx    To…

Q: How would a Dividend that is declared but not yet paid be treated at year end for financial…

A: Dividends are the amounts which are paid in consideration to the amount contributed in the company.…

Q: Which of the following statements best explains the company's profits generated for owners during…

A: Financial statements include income statement, statement of stockholder's equity, balance sheet and…

Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize…

A: Journal entries are prepared for each and every transaction entered by the organization. It is the…

Q: d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common…

A: According to the question given, we need to compute the financial ratios to measure the performance…

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 return on equity is calculated using which of the following formulas? Multiple Cholce Net Income…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?…

A: Cash flow is a statement that provide  data regarding cash inflow and cash outflow of the company…

Q: When a company issues a stock dividend, which of the following would be affected? Select one: O a.…

A: SOLUTION- STOCK DIVIDEND- IT IS A DIVIDEND PAYMENT TO THE SHAREHOLDERS THAT IS MADE IN SHARES RATHER…

Q: Which statement below is true? Retained earnings unappropriated is shown as part of reserves in the…

A: Accounting policies are the  principles rules and practices that are applied by entity in preparing…

Q: Lin horizontal aant anal ysis, eash item is expressed as a Percentage of the (a) net inconr amounb.…

A: Horizontal analysis is carried out with a view to show the changes in values of financial statement…

Q: Which of the following is a stockholders’ equity account? a. Common Stock b. Sales revenue c. Cash…

A: A balance sheet summarizes a company's assets, liabilities and shareholders' equity at a specific…

Q: at is the line item that appears on a statement of financial positi- Cost of sales. Dividends paid.…

A: The line item that appears on the statement of financial position is,   Option C   Current portion…

Q: Indicate whether statements regarding dividends is true or false. Cash and stock dividends reduce…

A:

Q: Which of the following occurs when a previously declared dividend is paid? Assets increase Equity…

A:

Q: To find out the total amount of dividends distributed by the company, one should refer to   Choices;…

A: Introduction:- The following are main financial statements of company as follows under:- Income…

Q: Which financial ratio does the DuPont equation help to explain?     ROA (return on assets)…

A: The DuPont equation primarily helps to explain the Return on Equity (ROE). The equation breaks down…

Q: It is calculated, taking into account the outstanding equity shares of the company A. Conversion…

A: Issue of shares is an important source of finance for the business. Several type of shares can be…

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: TRUE OR FALSE? Dividends declared is an addition to retained earnings beginning to compute for the…

A: Retained earnings ending balance is computed using , Retained earnings beginning balance Net Income…

Q: ue? a.The balance in the revenue accounts after closing agrees with the revenue shown on the income…

A: d) The balance of Retained earnings after closing agrees with the amount reported on the statement…

Q: The common stock received from the new company is recorded at ...... Select one: a. Average value…

A: Solution- The common stock received from the new company is recorded at Market Value.

Q: An increase in Select one: OA. dividends paid OB. retained earnings O C. OD. will increase common…

A: Common equity is an important indicator of a company's financial health and its ability to withstand…

Q: The Statement of Stockholders' Equity includes an adjustment for:  a Only Retained Earnings.  b…

A: The statement of stockholders' equity can be defined as the statement showing the capital components…

Q: Financial statements that report changes over time include: Multiple Choice O statement of…

A: Financial Statements include Income Statement, Statement of Stockholder's Equity, Balance Sheet and…

Q: The two basic sources of stockholders' equity are OA. assets and equity. B. preferred and common. C.…

A: Equity is the contribution of owners' funds in the business. The two main sources of equity are the…

Q: Which of the following statements about stock dividends is true? Multiple Choice O Stock dividends…

A: Stock dividends: It can be defined as the payment of dividends to the shareholders in the form of…

Q: 22. Which of the following is not included on the statement of changes in stockholders’ equity?   a.…

A: Statement of changes in stockholders' equity is a part of financial statements to show the changes…

Q: Match the following ratio functions with the ratio (place the number of your chosen answer into the…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Dividends are paid on the   a. date of record.     b. distribution date.     c. declaration date.…

A: Dividends are a percentage of profit paid to shareholders. Paying dividends is not compulsory but…

Q: Sales revenue is reported in the stockholder’s equity section of the balance sheet? True/false

A: Sales revenue: Revenue generated from the sales called sales revenue. Sales revenue = selling price…

Q: The balance in the Dividends account is closed off to:

A: (C). Retained earnings.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.