Which of the following statements is true of expenses?
A) Expenses increase equity, so an expense account's normal balance is a credit balance.
B) Expenses decrease equity, so an expense account's normal balance is a credit balance.
C) Expenses increase equity, so an expense account's normal balance is a debit balance.
D) Expenses decrease equity, so an expense account's normal balance is a debit balance.
D
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Solvency is concerned with the ability of a company to pay next year's debts as they come due
a. True b. False Indicate whether the statement is true or false
An example of a voluntary deduction is
a. Social Security; b. Federal Income Tax; c. Medicare; d. health insurance; e. none of these.
) According to the textbook, is brainstorming an effective method for organizing all kinds of communication?
A
Your firm adheres strictly to the residual dividend model. All else equal, which of the following factors would be most likely to lead to an increase in the firm's dividend per share?
A. The firm's net income increases. B. The company increases the percentage of equity in its target capital structure. C. The number of profitable potential projects increases. D. Congress lowers the tax rate on capital gains, leaving the rest of the tax code unchanged. E. Earnings are unchanged, but the firm issues new shares of common stock.