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Indicate whether the statement is true or false


TRUE

Business

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Which of the following is a true statement regarding owners’ equity?

a. APB Statement 4 and SFAC No. 6 both reflect the entity view of the firm. b. Owners’ equity consists of only two components: contributed capital and retained earnings. c. In a sole proprietorship, there is no legal distinction between contributed capital and earned capital. d. Dividends are legally paid only out of retained earnings.

Business

Chance is a traveling marketing representative for a publishing company. He is an independent contractor and was hired without negligence. One afternoon while driving to a meeting, Chance negligently runs a stop sign and causes an accident. Judy is injured. Judy can A) hold both Chance and his company liable for her injury

B) hold the company but not Chance liable. C) hold Chance but not the company liable. D) not hold Chance or his company liable for her injury.

Business

Which law requires the EPA to set national standards for substances if they are potentially harmful to human health?

A. Resource Conservation and Recovery Act B. Oil Pollution Act C. Safe Drinking Water Act D. Ocean Dumping Act

Business

The most recent balance sheet and income statement of Oldaker Corporation appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets:      Cash and cash equivalents$31 $29 Accounts receivable 73  79 Inventory 44  45 Property, plant and equipment 728  590 Less accumulated depreciation 253  242 Total assets$623 $501 Liabilities and stockholders' equity:      Accounts payable$56 $63 Accrued liabilities 21  22 Income taxes payable 26  28 Bonds payable 121  110 Common stock 33  30 Retained earnings 366  248 Total liabilities and stockholders' equity$623 $501  Income Statement?Sales$921Cost of goods sold   575Gross margin 346Selling and administrative expense  117Net operating income229Income taxes 

69Net income  $160The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities for the year was: A. $11 B. $(42) C. $3 D. $(28)

Business