Dividends paid to stockholders are a business expense.
Answer the following statement true (T) or false (F)
False
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When a company uses the allowance method of accounting for uncollectible receivables, which entry would not befound in the general journal?
a. Bad Debt Expense Allowance for Doubtful Accounts 500 500 b. Bad Debt Expense Accounts Receivable, Bob Smith 500 500 c. Cash 300 Allowance for Doubtful AccountsAccounts Receivable, Bob Smith 200 500 d. Cash Accounts Receivable, Bob Smith 500 500
Which of the following is the most desirable quick ratio?
a. 1.20 b. 1.00 c. 0.95 d. 0.50
Margo has just opened a new clothing store. She can’t afford to pay much over minimum wage at this point. But, she plans to distribute a portion of her earnings once she has paid off her startup costs. Margo plans on using which kind of extrinsic reward?
a. Merit pay plan of individual-level performance-based pay b. Profit sharing plan of team- and organization-level performance-based pay c. Bonus pay plan of individual-level performance-based pay d. Gainsharing plan of team- and organization-level performance-based pay
Collins Co. began operations in 2015. The company lost money the first two years, but has been profitable ever since. The company's taxable income (EBT) for its first four years are summarized below: YearEBT2015-$7,000,0002016-$5,200,0002017$4,200,0002018$8,300,000? The corporate tax rate has remained at 34%. Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2015. What is Collins' tax liability for 2018?
A. $76,500 B. $87,720 C. $125,460 D. $127,500 E. $102,000