Dividends distributed to stockholders should be treated as an expense of the business.
Answer the following statement true (T) or false (F)
False
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When a company pays an interest-bearing note payable on the due date, the journal entry on the books of the company making the payment includes
a. debiting Notes Payable and Interest Expense and crediting Cash. b. debiting Cash and crediting Notes Payable and Interest Expense. c. debiting Notes Payable and Cash and crediting Interest Revenue. d. debiting Cash and Interest Expense and crediting Notes Payable.
Cash paid for equipment would be reported on the statement of cash flows in
a. the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d. a separate schedule
On the statement of cash flows, the cash flows from financing activities section would include
a. receipts from the sale of investments b. payments for the acquisition of investments c. receipts from a note receivable d. receipts from the issuance of capital stock
Pricing constraints refer to
A. barriers to entry a firm faces when launching a new product. B. different pricing strategies for each of the firm's products. C. barriers that must be overcome in order to set pricing objectives. D. factors that limit the range of prices a firm may set. E. competitive pricing advantages one firm has over another.