How does the payment of cash dividends to stockholders affect the accounting equation? Is it considered an asset source, asset use, or asset exchange transaction?
What will be an ideal response?
Payment of cash dividends decreases assets and decreases equity. It is considered an asset use transaction.
Paying dividends decreases assets (cash) and decreases equity (retained earnings).
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Which one of the following statements is true with regard to the lower of cost or market rule?
A) If the direct method is used in applying the lower of cost or market rule, the loss or loss recovery due to market valuation changes is included in cost of goods sold. B) The lower of cost or market rule must be applied on an individual item basis for financial accounting purposes. C) With the application of the lower of cost or market rule using the direct method, the account, Allowance to Reduce Inventory to Market, is reported on the balance sheet as a contra asset. D) The lower of cost or market rule is primarily an application of the going concern assumption.
Despite being our most frequent activity, ______is also one of our least developed skills.
a. hearing b. listening c. speaking d. arguing
You work in the human resources department of a company that has partnered with a similar company in Brazil on a big contract. You have been asked to create a visual that will help the sales team understand who their counterparts are in the Brazilian company. What should you create?
A. flowchart B. map C. table D. organizational chart
Quantity discounts lead to
A) a significant buildup of cycle inventory in the supply chain. B) a slight buildup of cycle inventory in the supply chain. C) a decrease in cycle inventory in the supply chain. D) minor fluctuations of cycle inventory in the supply chain.