An objective of financial reporting is to reflect economic information concerning a company's cash flows
a. True
b. False
Indicate whether the statement is true or false
True
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A clothing store has opened a credit account in which Judy, a college student, gets Alice, her older sister, to agree to pay the amount owed on the account if Judy fails to do so. Which of the following statements is true of this scenario?
A. Alice is the guarantor, and Alice's contract must be in writing to be enforceable. B. Alice is the guarantor, and she is primarily liable to make the payments. C. Judy is the obligor, and she is contractually liable to the guarantor. D. Judy is the obligor, and she is secondarily liable to the clothing store.
Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Solar Company. Summary balance sheets for the companies on December 31, 20X5, are as follows: Plexis Corp.Solar CompanyCash and Receivables $70,000 $55,000 Inventory 60,000 35,000 Buildings and Equipment (net) 180,000 160,000 Investment in Solar Company 112,000 0 Total Assets $422,000 $250,000 Accounts Payable $40,000 $40,000 Preferred Stock 30,000 50,000 Common Stock ($15 par value) 90,000 75,000 Retained Earnings 262,000 85,000 Total
Liabilities and Owners' Equity $422,000 $250,000 Neither of the preferred issues is convertible. Plexis's preferred pays a 9 percent annual dividend, and Solar's preferred pays a 10 percent dividend. Solar reported net income of $40,000 and paid a total of $15,000 of dividends in 20X5. Plexis reported income from its separate operations of $80,000 and paid total dividends of $45,000 in 20X5.Based on the preceding information, what is the amount of earnings available to common shareholders reported in the consolidated financial statements for the year? A. $101,800 B. $115,000 C. $104,500 D. $112,300
Jennifer wishes to obtain auto insurance. She wants 100/300/100 liability coverage, $500 deductible collision and $100 deductible comprehensive. She lives in territory 2 and has been assigned to driver class 2 with a rating factor of 1.25. Based on the tables in the book, what would be her total premium, if her 10-year old car is in model class G?
An entity is represented by a column in the Entity-Relationship Model
a. True b. False Indicate whether the statement is true or false