FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 13. For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a reduction from retained earningsb. an increase in the investments available for sale accountc. a reduction in the investments available for sale accountd. dividend revenuearrow_forwardTreasury Stock is a(n) * contra asset account. O retained earnings account. asset account. contra stockholders' equity account.arrow_forwardFor fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl ected in shareholders’ equity?B . Th ey fl ow through retained earnings.arrow_forward
- The category of equity that tracks the events relating to stockholder transactions is known as: Group of answer choices Retained Earnings Treasury Stock Paid-In Capital Awesome Categoryarrow_forwardDescribe retained earnings and distinguish it from paid-in capital.arrow_forward4. Define the following terms. Signaling hypothesis; clientele effect Residual distribution model; extra dividend Declaration date; holder-of-record date; ex-dividend date; payment date Dividend reinvestment plan (DRIP) Stock split; stock dividend; stock repurchasearrow_forward
- ASSETS LIABILITIES AND CAPITALa. Current assets b. Investments c. Plant and equipment d. Intangiblese. Other assets f. Current liabilities g. Long-term liabilitiesh. Preferred stock i. Common stock j. Additional paid-in capitalk. Retained earningsl. Items excluded from balance sheetUsing the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. _____ 1. Bond sinking fund_____ 2. Common stock distributable_____ 3. Appropriation for plant expansion_____ 4. Bank overdraft_____ 5. Bonds payable (due 2010)_____ 6. Premium on common stock_____ 7. Securities owned by another company which are collateral for that company's note_____ 8. Trading securities_____ 9. Inventory_____ 10. Unamortized discount on bonds payable_____ 11. Patents_____ 12. Unearned revenuearrow_forwardWhich of the following is the definition of return on common equity?A. Net income / Average common equityB. Operating income / Average common equityC. Comprehensive income / Average common equityD. None of the abovearrow_forwardThe two main categories of stockholders’ equity area. assets and liabilities.b. retained earnings and common stock.c. common stock and preferred stock.d. retained earnings and paid-in capitalarrow_forward
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