A restriction on retained earnings a. Reduces retained earnings available for the declaration of dividends. b. Can be reported by an entry appropriating retained earnings. c. Has no effect on total retained earnings. d. All of the choices are correc
Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…
A: A bond is borrowing security issued by a company to raise funds from the market by making an…
Q: On December 31, 2021, the partnership of Anton, Andres and Angelo have the following accounts with…
A: Liquidation refers to the legal ending of business and settling the dues of partners. As the…
Q: A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to…
A: In the given question, the company had entered into a rent agreement for 2 years for P 720,000. This…
Q: Information on Inventory ABC are as follows: May 1 -Beg balance 1,400 units at P24 May 4 -Sales…
A: In this question, we need to compute the ending inventory and cost of sales under the moving…
Q: AUBURN Corporation had 120,000 of ordinary shares issued and January 2 of the same year, the company…
A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…
Q: On January 1, 2016, Pedro Reyes invested PHP250,000 on a delivery van. The car is expected to last…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: What constitutes "significant influence" when an investor's financial interest is less the 50%…
A: Significant influence means right to participate in financial and operating decision of an entity…
Q: What is the net effect of the above errors in the 2021 net income? (If understated, put a negative…
A: Income statement shows the net income or loss that is calculated by deducting the expenses from the…
Q: General Mills is authorized to issue 13 million, $1 par common shares. During 2021, its first year…
A: Introduction: Common shares normally provide shareholders the right to vote at shareholder meetings.…
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…
A: Note: Since the payment is being made on monthly basis, the effective rate of interest will be…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Formula: Basic earnings per share = (Net income - Preferred dividend)/ Weighted average number of…
Q: 8. Make an investment analysis for 1998 by computing: a. Equity Ratio b. Creditors Equity to Total…
A: We are given the balance sheet of two years 1997 & 1998 and income statement of 1998 based on…
Q: Prepare comparative balance sheets for 1997 and 1998, showing peso and percentage increases or…
A: Based on the figures of assets and liabilities of two year 1997 and 1998 Comparative balance sheet…
Q: On January 2, 2022, TITAN Company changed its inventory cost flow method to FIFO from average for…
A: As the question specified ignoring income taxes. The cumulative effect on retained earnings will…
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: which of the following doctrine or theory is called the doctrine of symbiotic relationship
A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…
Q: How about if the attorney joins the firm at the same time? Can you come up with any alternatives…
A: The answers for the practical questions on becoming a partner in a CPA firm are discussed hereunder…
Q: When a firm has no debt, then such a firm is known as: I) an unlevered firm; II) a levered firm;…
A: The debt-equity ratio, commonly known as the leverage ratio, is frequently used to assess a…
Q: 4. Evaluate the firm's short-term solvency for 1998 by computing: a. Working Capital b. Current…
A: Solution:- a)Calculation of working capital as follows under:- Working capital is the difference…
Q: 5. Jackie is a 50% partner in The Lunch Box. She is to receive a guaranteed payment of $30,000. If…
A: A partnership is an agreement where 2 or more people sign a partnership agreement to operate a…
Q: Read each problem carefully and choose the CORRECT answer among the choices. PROBLEM: Brooklyn…
A: Lets understand the basics. As per IAS 23 "Borrowing costs", borrowing cost incurred to construct or…
Q: CARMINE Company is preparing the interim financial statements for the first quarter ended March 31,…
A: Variable expense = Expenses in first quarter ×25% = P10,000,000 ×25% = P2500000 Fixed expense =…
Q: company is using target costing to establish whether it needs to redesign a proposed product. The…
A: Desired profit margin=25% Sale price unit: £125 Desired profit: £125*25%= £31.25 Cost for desired…
Q: Group of answer choices When nonmonetary items are translated from foreign currency to functional…
A:
Q: what are the pros and cons for activity based budgeting ?
A: Activity based budgeting is a method in which activity are thoroughly analyzed to predict costs.it…
Q: On January 1, 2021 the Hogan Manufacturing Company purchased a machine for $250,000. The company…
A: Depreciation is an expense charged against the income for the wear and tear of the equipment .…
Q: Separate income statement for ABC and XYZ for the year ended, 2022 are summarized as follows:…
A:
Q: FIERY Company's December 31 year-end financial statements had the following errors: December 31,…
A: The amount of net profit remaining after dividends have been distributed out to the company 's…
Q: Anna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price…
A: Break-Even Point: Your company has reached its break-even point when its entire expenses and total…
Q: This is your first month working as a bookkeeper and you notice a discrepancy when trying to…
A: A new bookkeeping personal it is the duty to provide all the correct information to the senior…
Q: Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to…
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: 1. S1: A change from cash basis accounting to accrual basis accounting is an example of change in…
A: The question is related to the Change in Accounting Policy and Change in Accounting estmates.…
Q: When employees have a conflict of interest between their personal compensation and provision of…
A: Management and owners of a company are different. Management is compensated in order to run the…
Q: Find the maturity value on a loan of $2,500 at 11.5% interest, for 84 months. Use the formula MV =…
A: The maturity value of loan will be the aggregate of Amount of loan and Interest on loan.
Q: 4. Would you support the proposal? Why or why not? 5. Unit volume to achieve an operating profit of…
A: The sums whereby a firm expects its profits to fluctuate as a result of an investment decision are…
Q: Comparable balance sheets are presented below: Dec. 31, 2015 Dec. 31, 2014 Assets Cash 1.2 1.9…
A: As per the guidelines, only three sub-parts are allowed to be solved. Please resubmit the question…
Q: The balance in the prepaid insurance account before adjustment on December 31, 2007 is $5,000. The…
A: Prepaid expense: Expenses of future period are paid in advance. These expenses are called prepaid…
Q: Budgeted indirect costs $7,200 Budgeted customer orders 1,200 Budgeted production units 1,800…
A: Budgeted indirect-cost per direct manufacturing labor hour = Budgeted indirect cost/Budgeted Direct…
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: Horizontal analysis of the balance sheet indicates the column determining a change in the amount of…
Q: Star Company provided the following data for the preparation of statement of cash flows for the…
A: Statement of Cash Flow - Statement of Cash Flow shows the movement of cash in the financial year. It…
Q: Some of Crane Corporation's investments in debt securities are classified as trading securities and…
A: Journal entries are the primary reporting of the transactions in the books.
Q: Elliptical Consulting Adjusted Trial Balance For the Year Ended June 30, 2019 Account Title…
A: Property, plant, and equipment (PPE) assets are fixed assets. These are also known as long-term…
Q: When will a person be bound by a contract entered into by another?
A: Introduction: A contract is a written or verbal agreement between 2 or more entities that generates…
Q: What is the 2021 pension expense?
A: Pension expense (PE) refers to those expenses which are charged by the company in relation to pay…
Q: How is the account Accounts Payable classified and what kind of balance should it have? Group of…
A: Accounts payable is the term for current liabilities in regard to purchases made on credit. Such…
Q: Information on Inventory ABC are as follows: May 1 -Beg balance 1,400 units at P24 May 4 -Sales 400…
A: In this question, we are required to calculate ending inventory and cost of sales under FIFO. As we…
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Dilluted eps (Diliiuted earning per share) is used to calculate profitability of company on the…
Q: The balance in the equipment account before adjustment on December 31, 2007 is $60,000 and the…
A: Depreciation is the reduction in the value of an asset over a useful life of the asset. It is an…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Diluted earnings per share (Diluted EPS) : Diluted EPS is the company's earnings per share if all…
a. Reduces retained earnings available for the declaration of dividends.
Step by step
Solved in 3 steps
- WHICH STATEMENT IS FALSE?A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning retained earnings.B. Equity is also the net assets.C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings.D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the preference shares, the difference is charged to retained earnings.TRUE OR FALSE? A prior period error is not included in profit or loss but treated as an adjustment of the beginning balance of retained earnings.Which of the statements below is false? If the net income of prior period is overstated because of the change in accounting policy, the effect is (A) deducted from the beginning retained earnings. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of (B) the prior period is overstated, the amount of the error uis deducted from retained earnings. Equity is also the net assets. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary D shares is more than the original issue of the preference shares, the difference is charged to retained earnings.
- Which of the following regarding retained earnings is false?a. Retained earnings is increased by net income.b. Retained earnings is a component of stockholders’equity on the balance sheet.c. Retained earnings is an asset on the balance sheet.d. Retained earnings represents earnings not distributed tostockholders in the form of dividendsI. No entry is required on date of declaration. II. Dividends declared is closed to the retained earnings because it is a temporary account of retained earnings. * O a. Only first statement is true O b. Only second statement is true O c. Both statement are true O d. Both statement are falseThe net effect of the entries to recognize the write-off under the allowance method is to: Multiple Choice have no effect on total assets or stockholders' equity. increase total stockholders' equity only. increase total assets and stockholders' equity. decrease total assets.
- 69. Claim against assets are represented by____.I am not satisfy give downvote A. saved earning B. retained earnings C. maintained earnings D.saving account earning31. The total retained earnings balance typically is not affected by * a. Net Income b. A prior period error c. Dividends paid d. RestrictionsWhat is the effect of omission of accrued income in retained earnings at the end of year 2? a. Understated b. No effect c. Overstated d. Cannot be determined from the given information
- The net effect of the entries to recognize the write-off under the allowance method is to: Multiple Choice O increase total assets and stockholders' equity. have no effect on total assets or stockholders' equity. decrease total assets. increase total stockholders' equity only.23. What is the process of incorporating an item in the statement of financial position or statement of profit or loss and other comprehensive income, when it meets the definition criteria? a. None of the options b. De-recognition c. Recognition d. MeasurementWhen using the allowance method, failure to record bad debt expense would have what effect on the accounting equation?: Assets Liabilities Stockholder's Equity A. No Effect No Effect No Effect В. Overstated No Effect Overstated С. Understated No Effect Understated D. Overstated Overstated Overstated Е. No Effect Understated Overstated Which of the following statements is FALSE?