On the right side of the accounting equation are two types of claims against resources. Explain what they are and give an example of an item that would increase each. Which type of claim has priority?
The two types of claims against resources are creditors' equities (liabilities) and stockholders' equity. Liabilities are a business's obligations to pay cash, transfer assets, or provide services to other entities in the future. Examples might include accounts payable, notes payable, or wages payable. Stockholders' equity represents the claims by the owners and is what would be left if all liabilities were paid. Examples include additional investments through stock issues or net income. Creditors have rights over stockholders.
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The board of directors of Chandler Company declared a cash dividend. Which of the following choices accurately reflects how this event would affect the elements of the company's financial statements? Assets=Liab.+Stk.EquityRev.?Exp.=Net Inc.Stmt. ofCash FlowsA.NA + ?NA + ?NAB.? NA ?NA NA NA?FAC.? NA ?NA NA NA?OAD.NA + ?NA NA NANA
A. Option A B. Option B C. Option C D. Option D
Promotions designed to increase product availability in distribution channels are known as:
A) sales promotions. B) price promotions. C) trade sales promotions. D) consumer sales promotions. E) nonprice promotions.
Which of the following is an active listening strategy?
a. validating b. reflecting c. summarizing d. all of the above
Jovar Inc., a U.S. multinational, began operations this year. Jovar had pretax U.S. source income and foreign source income as follows: U.S. source income$600,000 Foreign source income-Country O 100,000 Total$700,000 Jovar paid $50,000 income tax to Country O. Compute Jovar's U.S. tax liability if it takes the foreign tax credit.
A. $204,000 B. $147,000 C. $97,000 D. $126,000