Which of the following transactions would increase a company's assets & increase its liabilities? Which of the following transactions wouldincrease a company's assets and increase itsliabilities?a) Paying off a loanb) Purchasing inventory on creditc) Collecting cash from a customerd) Declaring a dividend

Explanation of Assets:Assets represent resources owned by a company that have future economic value.…

Answered: Which of the following transactions…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 20MCQ

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Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
Which of these transactions would be part of the financing section? A. inventory purchased for cash B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in cash
Which of the following are the ways that a company can finance the purchase of assets? Equity financing Cash financing Debt financing Supplier financing
Which of the following should be deducted from net incomein calculating net cash flow from operating activities using the indirect method? Group of answer choices a loss on sale of long-term investments a increase in accounts payable a increase in accounts receivable preferred dividends declared and paid
ductory financial accounting_ Liquidity is simply: O a. another term for non-current assets O b. a company's ability to pay obligations when due O c. another term for current liabilities O d. another term for cash ype here to search
Under What heads of the balance sheet will you classify the followings:1) Proposed Dividends2) Interest Accrued and due on secured loans 3) Interest Accrued and due on unsecured Loans4) Provision for Taxation5) Arrears of fixed accumulative dividends6) Security premium Account7) Share Forfeiture account.
Contribution received from shareholders will be recorded as. a. Dr Receivables Cr Cash account b. Dr Capital Cr Cash account c. Dr Cash account Cr Capital d. Dr Cash account Cr receivables
Which of the following transactions affects both the income statement and the balance sheet? O Collection of accounts receivable O Loan from bank O Depreciation on equipment O Declaration of cash dividend O Purchase of inventory on account
debt service ratio measures? A. Profitability of the business B. The impact of debt funding to equity holders C. Ability of the company to pay interest and principal on the due dates D. Tax saved due to borrowing
6) ratios compare current assets to current liabilities to indicate the speed with which a company can turn its assets into cash to meet debts as they fall due. A) Debt B) Current C) Liquidity D) Asset utilization E) Profitability
Under the equity method, the receipt of a cash dividend would include a: Group of answer choices credit to Gain on Sale of Investments. credit to Investment in Peas Company. a debit to Investment in Peas Company. debit to Gain on Sale of Invesments.
The payment of a dividend in the form of some asset other than cash. Choices; Property dividend Liquidating dividend Scrip dividend Dividend Receivable

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Which of the following transactions would increase a company's assets and increase its liabilities? a) Paying off a loan b) Purchasing inventory on credit c) Collecting cash from a customer d) Declaring a dividend