Dividends are declared and paid to the company's stockholders. What effect does this transaction have on the company's accounting equation?
A) Assets and liabilities decrease
B) Assets and retained earnings decrease
C) Liabilities decrease and retained earnings increases
D) Liabilities increase and contributed capital decreases
B
You might also like to view...
An auditor typically indicates in the engagement letter that the audit will result in an unqualified report on the financial statements
a. True b. False Indicate whether the statement is true or false
Opunui Corporation has two manufacturing departments-Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: MoldingFinishingTotalEstimated total machine-hours (MHs) 4,000 1,000 5,000Estimated total fixed manufacturing overhead cost$19,600$2,400$22,000Estimated variable manufacturing overhead cost per MH$1.10$2.10 During the most recent month, the company started and completed two jobs-Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job AJob MDirect materials$13,600$7,500Direct labor cost$20,700$7,400Molding machine-hours 2,700 1,300Finishing machine-hours 400 600Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The total manufacturing cost assigned to Job M is closest to: (Round your intermediate calculations to 2 decimal places.) A. $7,500 B. $7,400 C. $25,730 D. $10,830
Skills for critical thinking should include ______.
A. biases B. self-awareness C. passivity D. undisciplined thinking
Which of the following legislations can a state adopt in determining whether an accountant is liable in negligence to third parties?
A) Section 2(b) of the Robinson-Patman Act B) Section 5 of the Federal Trade Commission C) Section 552 of the Restatement (Second) of Torts D) Section 16 of the Clayton Act