25 May Question Explain how companies recognize accounts receivab
Question
Explain how companies recognize accounts receivable. How would you describe the entries to record the disposition of accounts receivables? What is their function? How are bad debts accounted for under the direct write-off method? What are the advantages and disadvantages of this method?
How would you describe the entries to record the disposition of accounts receivables?
What is their function?
? Chen, Inc. purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?
? The treasury stock purchased in the above question was resold by Chen, Inc. for $15,000. What effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?
? What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why?
? Why do corporations buy back their own stock? What does it tell you about the corporation? What effect does the purchase have on the price of a company’s stock?
? Why must preferred stock dividends be subtracted from net income in computing earnings per share? Why is common stock usually not issued at a price that is less than par value?
? What three conditions must exist before a cash dividend is paid? Contract the effects of a cash dividend and a stock dividend on a corporation’s balance sheet.
? Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?
? What are some common ratios used to analyze financial information? Which are the most important? What are some examples of how ratios are used in the decision making process?
Acc 291 Week 5
Effect of Unethical Behavior Article Analysis
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