A preemptive right means shareholders can purchase their proportional share of common stock issued later by the corporation.
Answer the following statement true (T) or false (F)
True
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Carla and Eliza share income equally. For the current year, the partnership net income is $40,000 . Carla made withdrawals of $12,000 and Eliza made withdrawals of $21,000 . At the beginning of the year, the capital account balances were: Carla capital, $42,000? Eliza capital, $55,000 . Eliza's capital account balance at the end of the year is
a. $34,000 b. $54,000 c. $78,000 d. $75,000
Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of retained earnings, and a balance sheet. There were no additional stock issuances during the year. Barry's Automotive ShopTrial BalanceDecember 31Cash$ 12,500?Accounts receivable1,500?Supplies500?Repair shop equipment27,000?Service truck33,000?Accounts payable?$2,600Common Stock?30,000Retained Earnings?8,525Dividends36,000?Service revenue?125,000Supplies expense3,425?Rent expense18,000?Utilities expense5,000?Gas expense7,200?Wages expense22,000? Totals$166,125$166,125
What will be an ideal response?
How do gains and losses differ from revenues and expenses? How are they similar?
What will be an ideal response?
An inventory turnover ratio of 8.5 times indicates that:
A. the inventory of the firm turns over every 8.5 days. B. the value of the inventory of the firm is 8.5 percent of the total assets of the firm. C. the value of sales of the firm is 8.5 times the cost of goods sold. D. the firm will restock its inventory every 42.35 days. E. the firm pays for its inventory once in 42.35 days.