Withdrawals and additional investment by the business owner are reported on the:
a. income statement.
b. statement of owner's equity.
c. balance sheet.
d. work sheet.
e. all of the above.
b
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Cash dividends decreases stockholders' equity at the time the dividends are paid.
Answer the following statement true (T) or false (F)
Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________
A) new product B) market segment C) marketing intermediary D) brand E) product line
In preparing a statement of cash flows (indirect method), cash flows from operating activities
a. is calculated as the difference between revenues and expenses plus the beginning cash balance. b. is always equal to the sum of cash flows from investing activities and cash flows from financing activities. c. can be calculated by appropriately adding to or deducting from net income those items in the income statement that affect cash and accruals for current assets and current liabilities. d. can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash.
If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point (dollars)?
A) $1,875,000 B) $300,000 C) $2,500,000 D) $1,250,000