19.  Which of the following statements relating to earnings per share is not true? __________ It is an often-reported measure of the potential return to stockholders.   It is a financial measure.   It is a cash measure.   It is based on the accrual basis of accounting.

Which of the following is not a factor in producing earnings forecasts?  a) Estimating the level of dividends b) Separation of recurring and nonrecurring components c) Recognizing potential earnings management d) Recognizing potential income smoothing

Which one of the following normally has a net debit balance? A. Contributed capital that is in shareholders’ equity.   B. Retained earnings that is in shareholders’ equity. C. Dividends that decrease retained earnings Revenues that increase retained earnings.   D. Revenues that increase retained earnings

Which of the following statements is FALSE?i. Using the payback rule, you can calculate how much profits are earned over the investment period.ii. The IRR is sensitive to the timing of the cash flows.iii. Shareholders have the first claim on the cash flows of the company.

Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c. Reduce total stockholders’ equity. d. Reduce retained earnings.

Why the dividend does exceeds the balance in retained earnings, the excess referred to as a liquidating dividend?

28. Help me selecting the right answer. Thank you

Is it possible to have “record net income” for a quarter and negative cash flows at the same time? Be specific in your response as to how you would, or would not, be able to see this in the financial statements.

Addison Company experienced an accounting event that affected its financial statements as indicated below: Stockholders' Equity + Assets = Liabilities + + Multiple Choice Issued common stock Earned cash revenue Revenue + Earned revenue on account - A Which of the following accounting events could have caused these effects on Addison's financial statements? Expense R Net Income + Statement of Cash Flow

Under the accrual method of accounting, how are dividends paid to stockholders treated? O Dividends decrease retained earnings and are considered an expense O Dividends are considered a distribution of retained earnings but do not affect net income O Dividends increase stockholders' equity as they represent a return on investment O Dividends paid are recorded as an investment activity in the statement of cash flows O None of the above