Jurisdiction-specific corporate laws limit directors' freedom to declare dividends. Which of the following is/are not true?
a. The board may declare dividends "out of capital," that is, debited against the contributed capital accounts, which result from fund-raising transactions with owners.
b. The board may declare dividends "out of earnings" by debiting them against the Retained Earnings account, which results from earnings transactions.
c. "Capital" may mean the par or stated value of outstanding common shares or the total amount paid in by shareholders.
d. Some jurisdictions allow corporations to declare dividends out of the earnings of the current period even if the Retained Earnings account has a debit (negative) balance because of accumulated losses from previous period
e. none of the above
A
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Calculate the percentage cost of goods sold by a business if the cost advantage index of the business is 150 and the average percentage cost of goods sold by its top three competitors are 40%, 50%, and 30%, respectively
A) 150 B) 40 C) 60 D) 126 E) 70
The ______ is the guide or “skeleton” for the main ideas of your speech.
a. outline b. introduction c. body d. conclusion
Shareholders of Augusta Corporation have received $35,000 in dividends in the current year. At year end the corporation has total assets of $500,000, total liabilities equal to $300,000, and contributed capital totaling $100,000 . If retained earnings at the beginning of the year was $80,000, what was Augusta's net income for the current year?
a. $80,000 b. $215,000 c. $55,000 d. $10,000 e. $45,000
The difference between the initial markup and maintained markup is based on _____
a. markdowns, added markups, shortages, and discounts b. markdowns, shortages, and discounts c. seasonality and style preferences d. the need to match the prices of competitors