, Stockholders' Equity will decrease by an entry to Retained Earnings or to Dividends. No Effect Wrong. 4. The company receives cash from a bank loan. Assets Increase Right! The company's asset account Cash...
, Stockholders' Equity will decrease by an entry to Retained Earnings or to Dividends. No Effect Wrong. 4. The company receives cash from a bank loan. Assets Increase Right! The company's asset account Cash...
Our Explanation of Bonds Payable covers the recording of bonds, the accrual of interest expense, and the amortization of the discount and premium on bonds payable. You gain an understanding on why the market value of...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
Our Explanation of Accounting Basics uses a simple story to introduce important accounting concepts and terminology. It illustrates how transactions will be included in a company's financial statements.
the cumulative earnings of a corporation minus the cumulative dividends that have been declared. retained earnings Generally, this section within stockholders’ equity reports the cumulative earnings of a corporation...
Since our Explanation of Cash Flow Statement illustrates how the amounts are determined, you will get a better understanding of this very important financial statement. No longer will you look at only the income...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Our Explanation of Financial Statements provides you with the highlights of each of the five external financial statements issued by U.S. corporations. Our insights will give you a good understanding of what the...
by total __________. 19. Capital expenditures (and perhaps dividends) are deducted from the net cash flow from __________ activities when calculating free cash flow. 20. Common-size financial statements are related to...
of the __________ dividends per share divided by the earnings per share. Select... cash stock total of cash and stock 25. A new growth corporation with significant profit potential will likely have a __________ dividend...
the disposal of equipment are reported on the statement of cash flows in the section entitled cash flows from __________ activities. 46. The amount of dividends declared and paid by a corporation should appear in the...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
incentive for a profitable corporation to issue bonds instead of stock is that the interest is __________ for income tax purposes whereas dividends are not. 10. Bonds that can be exchanged for a predetermined number of...
does not give the bondholders any ownership interest semiannual interest payments must be made when due the maturity amount must be paid when the bonds come due the issuer’s interest expense qualifies as an income tax...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
37. Used to assess the quality of a company’s earnings. Select... operating activities investing activities financing activities supplemental information 38. Depreciation expense. Select... operating activities...
to the U.S. Securities and Exchange Commission is referred to as Form __________. 32. Stock that has the amount of its long-term dividends specified at the time the stock is issued is __________ stock. Select... common...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
in the operating activities section of the SCF. (The positive adjustment is necessary to offset the loss being reported within the income statement, since the loss did not use any cash.) 23. How will a cash dividend...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
, issuing and/or repurchasing of capital stock, declaring of dividends to stockholders, and draws made by an owner. Cash flows from operating activities We will focus on the first section of the SCF, cash flows from...
You might think of the acronym DEAL when learning which accounts will be increased with a debit entry. Use the first letter from the following four types of accounts to spell D-E-A-L: Dividends Expenses Assets Losses...
Our Explanation of Working Capital and Liquidity provides you with an in-depth look at the components of working capital and the challenges of converting current assets to cash before obligations come due. You will see...
Our Explanation of Working Capital and Liquidity provides you with an in-depth look at the components of working capital and the challenges of converting current assets to cash before obligations come due. You will see...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
Our Explanation of Debits and Credits describes the reasons why various accounts are debited and/or credited. For the examples we provide the logic, use T-accounts for a clearer understanding, and the appropriate general...
Our Explanation of Income Statement helps you learn the most important features of a corporation's income statement (also known as the statement of operations or profit and loss statement). We provide more understanding...
Our Explanation of Financial Accounting introduces some of the basic accounting concepts and how they affect the income statement, balance sheet, and other financial statements.
the cumulative earnings of the corporation minus the cumulative dividends declared since the corporation began. retained earnings Generally, this section of stockholders’ equity reports the cumulative earnings of the...
the dividends declared by the corporation since the time the corporation was formed. These undistributed earnings are reported as retained earnings and included as a separate line in the stockholders' equity...
's stockholders' equity (a section of MoCorp's balance sheet) can change during the year for the following reasons: It increases by the amount of MoCorp's earnings It decreases by the amount of...
See interest revenues.
See inventory: work-in-process (WIP).
Why is an increase in inventory shown as a negative amount in the statement of cash flows? Meaning of a Negative Amount on Statement of Cash Flows A negative amount on the statement of cash flows (SCF) indicates that the...
This indicates (on average) how many days it takes to sell the merchandise held in inventory. To learn more, see Explanation of Financial Ratios.
The combined federal and state income tax rate that applies to an additional amount of taxable income.
See inventory: work-in-process (WIP).
An asset account which reports the carrying amount of a company’s investment in another enterprise.
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