Presented Below Are Three Transactions. Mark Each Transaction As Affecting Common Stock, Dividends, Revenue, (2023)

Business High School


Answer 1


a)Received cash for services performed.

+ Assets (cash)

+ revenues (fees earned)

This has impact on stockholders equity as the revenues increase the earnings of the business. The company receives an asset (cash increasease of their services, that asset received is what icnrease the value of the company)

b)Paid cash to purchase equipment.

+ Assets (equipment)

- Assets (cash)

This transaction doesn't involve Equity It is just a change in the Assets compositions. It has no impact on the income neither.


Related Questions

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision-making a) true
b) false



A. True


The term business intelligence refers to the plans, process through which the raw data is to be converted into meaningful information that became relevant for the ethical decision making so that the goals and the objectives of the company could be accomplished.

Data + Process = Information

Collection of information through internal and external parties would also help to analyze the trends, patterns for better decision making.

Therefore, the given statement is true.

Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of the two years. The annual real rate of interest is:______. A. 6 percent.
B. 8 percent
C. 2 percent.
D. 3 percent.



C. 2 percent.


The computation of the annual real rate of interest is presented below:

Provided that

Nominal annual interest rate = 8%

Inflation rate = 5%

So, the annual real rate of interest is

Real rate of return = {( 1 + nominal annual rate of return) ÷ ( 1 + inflation rate)} - 1

= {( 1 + 0.08) ÷ ( 1 + 0.05)} - 1

= 2%

Finnegan is a limited partner in Gettout & Associates, a local financial consulting company. Heywood U. Gettout is one of the general partners in the company and is needing to temporarily leave the company to attend to some personal matters. Heywood has asked Finnegan to perform his managerial duties while he is gone. As a limited partner, Finnegan______________


When ask to perform managerial duties, he could not because he (Finnegan) cannot participate in the management of the partnership.

In this case of partnership, Finnegan is a limited partner in the business.

  • Limited partner refers to the company partner whose liability for the company's debts can not exceed the amount invested in the company by an individual.
  • A limited partner does contributes money in return for partnership shares but has negligible voting weight over the management of the company and no direct presence in the enterprise.

In conclusion, when ask to perform managerial duties, he could not because he (Finnegan) cannot participate in the management of the partnership.

Read more about Partnership

(Video) [Financial Accounting]: Chapter 13: Corporations, Stock Transactions, and Dividends


Cannot participate in the management


A limited partner refers to the company partner whose liability for the company's debts can not exceed the amount invested in the company by an individual. Limited associates are frequently termed silent partners.

A limited partner contributes money in return for partnership shares but has negligible voting weight over the management of the company and no direct presence in the enterprise.

Maria, a single mother of three, has been saving to buy the family's first home. Her budget is limited, but there is a home she can easily afford on the market. Unfortunately, there have been zoning changes in the area, and a twenty-four hour convenience store is located across the street. Is this deterioration curable or incurable? A. Curable
B. Incurable
C. It may be curable if the surrounding neighborhood is well-maintained and the upkeep is good. If the remainder of the area is on the decline, it is probably incurable.
D. Both A and C



B) Incurable


The convenience store is working legally in front of your house, and unless you have enough money to buy the whole business and close it, then you cannot do anything about it. That is what incurable means in real estate: the costs of improvements or corrections necessary are higher than the value that is added by the improvement or cure.

That is probably the reason why the house is so cheap and Maria can afford it.

The television industry in the United States is controlled by seven giant corporations: The Walt Disney Company, CBS Corporation, Viacom, Comcast, Hearst Corporation, Time Warner, and News Corporation. Thus, the television industry in the U.S. is a typical _____ marketc.monopolisticd.oligopolistic



D) oligopoly


An oligopoly is a market dominated by few suppliers. There is very limited competition mainly due to high entry barriers and concentrated market power. The most important entry barriers are economies of scale, patents and other expensive technologies and government licences. Also, since the oligopolistic firms have great market power, they usually carry out actions designed to discourage new competitors or directly eliminate them.

The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job.A.TrueB.Flase





For computing the cost of the completed jobs in a job-order costing system we have to consider the actual direct materials cost, actual direct labor cost, and the manufacturing overhead cost applied.

In mathematically,

The total cost of completed job = Direct Material cost + Direct labor cost + manufacturing overhead cost

Therefore, the given statement is true

A 37-year-old client with type 1 diabetes and good glycemic control is pregnant for the third time. Her first child is 4 years old, and her second pregnancy resulted in a stillbirth. She is seen in the antepartum testing unit for a nonstress test (NST) at 33 weeks' gestation. What are the primary risk factors in the client's history that indicate a need for the NST? Select all that apply. 1.Age greater than 35 years
2.The risk for placenta previa
3.The risk for placental insufficiency
4.A history of stillbirth from her last pregnancy
5.Maternal history of hypertension



3,4 and 5


A pregnant woman with diabetes is prone to placenta insufficiency thus being unable to support the fetus which can lead to fetal death. Additionally, a history of hypertension which is usually associated with diabetes can also affect efficient functioning of the placenta. Lastly, the history of stillbirth is also an indication of NST.

A group of American firms accused Japanese manufacturers of selling flat screens used in laptop computers at prices as much as​ 70% less than manufacturing cost. This is an example of​ _______. A. A cartel
B. Embargo
C. Tariff
D. Dumping



D. Dumping



It is a business policy at which foreing company's sale a product way below their normal domestic cost. Dumping is prohibited if threatens to hurt the country's economy to later take the market. D

It is considered an unfair and not loyal competitive strategy. Negative effect of dumping is that countries tries to apply more protectionism to trade making more difficult ot the domestic firms to compite with the foreing one.

(Video) V2.1 The Impact of Transactions on the Financial Statements

A ________ demand curve for shampoo would be caused by a change in the price of shampoo. a) leftward shift of the
b) rightward shift of the
c) movement along
d) the positively sloped



c) movement along


A change in price of shampoo would lead only to a movement along the demand curve for shampoos. The movement could either be up or down. If price increases, the movement is up and if prices decreases, the movement is down.

Changes in price affect the quantity demanded. If price is increased, quantity demand falls and if price falls, quantity demanded rises.

Other factors lead to a shift of the demand curve. Some of them include:

1. Change in consumers income

2. Change in taste

3. Change in price of subsituites.

I hope my answer helps you

Posting is the process of: a. Analyzing the impact of the transaction on the accounting equation. b. Obtaining information about external transactions from source documents. c. Transferring the debit and credit information from the journal to individual accounts in the general ledger. d. Listing all accounts and their balances at a particular date.



c. Transferring the debit and credit information from the journal to individual accounts in the general ledger.


This process of posting involves taking entries from the journal and posting to general ledger accounts. Double entry is used in posting.

For example of the business paid cash for stationery, two accounts in the general ledger are involved. The cash account and the stationery account.

Both accounts are asset accounts (when they increase you debit, and when they reduce you credit).

So a credit is posted to cash account for cash paid out. A debit is posted to stationery account for stationery received.

In a business context, legal counsel is not only a primary and important source of information and advice but is also solely responsible for making decisions about how to resolve a dispute.A.TrueB.False





The role of a legal counsel within an organization is to manage the legal risk associated with the business. the legal counsel within an organization understands the pressure points, strategy and objectives of the business and communicates the risks and legal issues involved in any decision to management within the organization.

For example: the legal counsel is not solely responsible for making decisions to resolve dispute, but the legal counsel is part of the party that resolves dispute within business organization without going to court.

A(n) ________ with expertise in developing vision and mission statements and with unbiased views, can at times manage the process more effectively than an internal group or committee of managers. a) external group
b) external auditor
c) outside process analyst
d) internal auditor
e) outside facilitator



e) Outside facilitator


An outside facilitator is someone whose views are unbiased and independent since such an individual is not a part of the organization.

(Video) Accounting for Common Stock | Issuing Common Stock | Financial Accounting Course | CPA Exam FAR

Such facilitators specialize in developing vision and mission statements for various corporations.

Many a times the internal group or committee of managers find it difficult to convey and make employees understand vision and mission or common objectives.

Where there is lack of consensus or harmony between managers and employees, it is recommended to avail the services of such a facilitator.

Bobby is speaking to his friend and says, "this musical is going to cost me $60 when I buy the ticket." His friend corrects him and says, "actually, this concert will cost you more than $60 since you have to miss work." His friend is referring to the _________________. Select the correct answer below:

a)economies of scale
b)budget constraint
c)opportunity cost
d)opportunity set



c)opportunity cost


As Bobby is missing the job, it has to add up to the ticket cost the amount of labor wages lost during the concert and going bach and forth from his workplace.

That's because if Bobby didn't attend the concert it may have worked therefore, it will end with more han 60 dollars in his pocket.

The difinition for opportunity cost is the best alternative rejected. In this case is the wages against going to the musical

The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in its use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is "culture" an important factor to consider when building information system solutions to business problems?



B) The business culture provides the vision and inspiration for information system solutions


The culture of a company is the character of an enterprise. It establishes the workplace environment. The tradition of the company comprises a wide range of components, such as working environment, task, inspiration, ethical standards, aspirations, visions and objectives. Without any regulations and rules, certain firms provide a casual work environment.

Chevelle, Inc. has sales of $487,000 and costs of $394,500. The depreciation expense is $43,800. Interest paid equals $18,200 and dividends paid equal $6,500. The tax rate is 35 percent. What is the addition to retained earnings?



The correct answer is $13,325.


According to the scenario, the given data are as follows:

Total sales = $487,000

Cost of goods sold = $394,500

Depreciation expense = $43,800

Interest paid = $18,200

dividends paid = $6,500

Tax rate = 35%

so, first we calculate net income.

Net income = ( Total sales - Cost of goods sold - Depreciation expense - Interest paid ) - 35%

= ($487,000 - $394,000 - $43,800 - $18200 ) - 35%

= $30,500 - $10,675

= $19,825

Addition to retained earnings = Net income - Dividends Paid

= $19,825 - $6,500

= $13,325

Hence, the correct answer is $13,325.

When the Sherman Antitrust Act banned businesses from "restraining trade," Samuel Dodd came up with the ______, a corporation of corporations that had the power to hold shares of other companies.



Holding company.


A holding company normally does not have operations of its own but owns the share of other companies. They form corporate groups, so are referred to as corporate of corporates.

Holding companies work to reduce the risk of the companies they own shares in. For example the shares they hold are protected from the operations of the company, so in times of crisis there is a pool of funds the business can fall back on.

(Video) Stock Issue (Noncash Transaction, Under & Over Valuing, Watered Stock, Secret Reserves)

If investors are risk averse and hold only one stock, we can conclude that the required rate of return on a stock whose standard deviation is 0.21 will be greater than the required return on a stock whose standard deviation is 0.10.A.TrueB.False



Explanation: Standard deviation is the rate of spread of numbers or values around the Mean of the numbers or values, it can also be described as the square root of the variance of a set of numbers or values. In financial analysis, the rate of return is the amount net income of a business entity over a given period of time. A risk averse investor is an investor who will try as much as possible to avoid risk even with high profit investment.

So for a risk average person to take on the investment with higher standard deviation it means the rate of return will be Higher.

A study of the consumption of beverages in Mexico found​ that: "Overall, for soft drinks a​ 10% price increase decreases the quantity consumed by​ 10.6%." ​Source: M.A.​ Colchero, et​ al., "Price Elasticity of the Demand for Sugar Sweetened Beverages and Soft Drinks in​Mexico," Economics and Human Biology, Vol.​ 19, December​ 2015, pp.​ 129-137.

Given this​ information, the price elasticity of demand for soda in Mexico is _____ . ​(Enter your response rounded to two decimal places. Use a negative sign if you are entering a negative​number.)

Is demand price elastic or price​ inelastic? Briefly explain.

A.) ​Inelastic, because the percentage change in quantity demanded is less than the percentage change in price.
B.) Elastic, because the percentage change in quantity demanded is less than the percentage change in price.
C.) ​Inelastic, because the percentage change in quantity demanded is greater than the percentage change in price.
D.) ​Elastic, because the percentage change in quantity demanded is greater than the percentage change in price.



Elasticity of demand is 1.06

​Elastic, because the percentage change in quantity demanded is greater than the percentage change in price.


Elascitiy of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price.

10.6% / 10% = 1.06

When coefficient of elasticity is greater than 1, it indicates that demand is elastic.

​The percentage change in quantity demanded is greater than the percentage change in price.

I hope my answer helps you

Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved into classes such as deodorants, shampoos, and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence



C) category points-of-parity.


With category points-of-parity the emphasis is on Nivea brand offering the relevant category features. These are features a brand must have to be considered competitors in a particular industry.

So for deodorants people want to know if they are strong, will the shampoo clean effectively, and will cosmetics be colourful.

Without these key features in the products Nivea would lose competitive advantage.

Misconduct in research or scholarship includes fabrication, falsification, or plagiarism in proposing, performing, reviewing, or reporting research. It does not include honest error or honest differences in interpretations or judgements of_____________data.



Recording data.

(Video) How to Determine the Effect of Transactions on the Basic Accounting Equation Accounting Principles



Which of the following is true of a stock dividend? ›

Answer and Explanation: The answer is b. A stock dividend does not change a stockholder's ownership percentage.

Which of the following statements about stock dividends is false? ›

Answer and Explanation: Answer choice: c. Cash dividends paid to stockholders reduce net income. Cash or stock dividend does not affect the net income.

What is a stock dividend quizlet? ›

Stock Dividend. A payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding. Stock Split. An increase in a firm's shares outstanding without any change in owner's equity.

Which of the following transactions are classified as a stock dividend quizlet? ›

Which of the following transactions are classified as a stock dividend? A distribution of shares of stock held as an investment to stockholders of the corporation.

Which of the following is true of a stock dividend quizlet? ›

Which of the following is true of a stock dividend? Does not affect total equity, but transfer amounts between the components of equity. The Discount on Common Stock account reflects: The difference between the par value of stock and its issue price when it is issued at a price below par value.

Which of the following statements is true regarding stock dividends quizlet? ›

The only true statement is that a stock dividend increases the number of shares the holder will own. A stock dividend reduces the cost basis per shares of an investor's overall stock position.

Which of the following statement is incorrect about dividend? ›

A stock dividend has no effect on total stockholders' equity and book value per share.

What is an example of stock dividend? ›

What Is a Stock Dividend? A stock dividend is a payment to shareholders that consists of additional shares rather than cash. The distributions are paid in fractions per existing share. For example, if a company issues a stock dividend of 5%, it will pay 0.05 shares for every share owned by a shareholder.

What is a stock dividend quizizz? ›

Q. What is a dividend? part of a company's profits. the first issue of a stock. someone who purchases stocks, bonds, mutual funds.

What activity is stock dividend? ›

Dividends paid are classified as financing activities. Interest and dividends received or paid are classified in a consistent manner as either operating, investing or financing cash activities. Interest paid and interest and dividends received are usually classified in operating cash flows by a financial institution.

Which of the following is a type of dividend payment? ›

1) Cash Dividend:

Cash dividend is the most popular form of dividend payout. In this, company issues the dividend to all shareholders where the money is deposited in the bank accounts of shareholders as per the holdings of the investors.

What is the effect of a stock dividend on stockholders equity? ›

Although stock splits and stock dividends affect the way shares are allocated and the company share price, stock dividends do not affect stockholder equity. Stockholder equity also represents the value of a company that could be distributed to shareholders in the event of bankruptcy.

What type of income are stock dividends? ›

Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.

Which of the following is true about dividends quizlet? ›

Which of the following is true of​ dividends? Dividends are a distribution of​ cash, stock, or other property to stockholders.


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