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Operating Activities of a Business Retained earnings will show much of the profit has been left in the company. Some companies retain all profit whereas others pay out a portion in the form of...

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Operating Activities of a Business
Retained earnings will show much of the profit has been left in the company. Some companies retain all profit
whereas others pay out a portion in the form of dividends. Find a publicly-traded company that does not pay
dividends and discuss why management of that company has decided not to pay out profits to shareholders.
Would you as a shareholder prefer to receive dividends or have the business reinvest the money? Why?
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Question 12 points   HYPERLINK "javascript:saveItem('_12892690_1','1')" Save   The following is an example of an error that will not be discovered on the trial balance: A.An entry was journalized and posted as a debit to cash for $500 and credit to accounts receivable for $5,000.B.An entry was journalized and posted as a debit to cash for $500 and a credit to sales revenue $500 when payment was received on a customer's account.C.An entry was journalized and posted as a debit to wages expense for $20,000 and a debit to wages payable for $20,000.D.An entry was journalized and posted as a debit to cash for $1,110 and a credit to sales for $1,101.    Question 22 points   HYPERLINK "javascript:saveItem('_12892691_1','2')" Save   On April 1, 2007, the premium on a one-year insurance policy on equipment was paid amounting to $3,000 with the insurance starting on that date. At the end of December 31, 2007 (end of the accounting period), the financial statements for 2007, would report: A.Insurance expense, $3,000; Prepaid insurance $0.B.Insurance expense, $0; Prepaid insurance $3,000.C.Insurance expense, $750; Prepaid insurance $2,250.D.Insurance expense, $2,250; Prepaid insurance $750.    Question 32 points   HYPERLINK "javascript:saveItem('_12892692_1','3')" Save   On July 1, 2009, Allen Company signed a $100,000, one-year, 6 percent note payable. At due date, June 30, 2010, the principal and interest will be paid. Interest expense should be reported on the income statement for the year ended December 31, 2009 as: A.$6,000B.$3,000C.$1,500D.$0    Question 42 points   HYPERLINK "javascript:saveItem('_12892693_1','4')" Save   On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. During 2007, supplies purchases amounted to $5,000. A physical count of inventory on hand at December 31, 2007, showed $1,200. The...

Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021
131 Votes
Question 1 2 points Save
The following is an example of an e
or that will not be discovered on the
trial balance:

A. An entry was journalized and posted as a debit to cash for $500
and credit to accounts receivable for $5,000.

B. An entry was journalized and posted as a debit to cash for $500
and a credit to sales revenue $500 when payment was received
on a customer's account.

C. An entry was journalized and posted as a debit to wages expense
for $20,000 and a debit to wages payable for $20,000.

D. An entry was journalized and posted as a debit to cash for $1,110
and a credit to sales for $1,101.
Question 2 2 points Save
On April 1, 2007, the premium on a one-year insurance policy on
equipment was paid amounting to $3,000 with the insurance starting on
that date. At the end of December 31, 2007 (end of the accounting
period), the financial statements for 2007, would report:

A. Insurance expense, $3,000; Prepaid insurance $0.

B. Insurance expense, $0; Prepaid insurance $3,000.

C. Insurance expense, $750; Prepaid insurance $2,250.

D. Insurance expense, $2,250; Prepaid insurance $750.
Question 3 2 points Save
On July 1, 2009, Allen Company signed a $100,000, one-year, 6 percent
note payable. At due date, June 30, 2010, the principal and interest will be
paid. Interest expense should be reported on the income statement for the
year ended December 31, 2009 as:
javascript:saveItem('_12892690_1','1')
javascript:saveItem('_12892691_1','2')
javascript:saveItem('_12892692_1','3')


A. $6,000

B. $3,000

C. $1,500

D. $0
Question 4 2 points Save
On January 1, 2007, the ledger of Global Corporation co
ectly showed
supplies inventory of $1,000. During 2007, supplies purchases amounted
to $5,000. A physical count of inventory on hand at December 31, 2007,
showed $1,200. The 2007 income statement should report supplies
expense amounting to:

A. $6,000

B. $5,200
...
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