• 2022-05-29
    Revenues can lead to an increase in the owners’ equity, and therefore, the increase in the owners’ equity should be recognized as the income of a firm. ( )
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    • 0

      If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.

    • 1

      At the beginning of the period assets are $18,000 and at the end of the period assets are $21,000. At the beginning of the period liabilities are $11,000 and at the end of the period liabilities are $10,000. How did owners' equity for the period change? A: Decrease of $1,000 B: Increase of $3,000 C: Increase of $1,000 D: Decrease of $3,000 E: Increase of $4,000

    • 2

      An<br/>increase in a firm’s number of shares outstanding without any<br/>change in owners’ equity is called a:() A: special<br/>dividend. B: stock<br/>split. C: share<br/>repurchase. D: tender<br/>offer. E: liquidating<br/>dividend.

    • 3

      The owner's equity refers to the remaining equity held by the owners after deducting liabilities of corporate assets.

    • 4

      During the current year, the assets of The Big Dial increase by $132,000, and the liabilities increase by $80,000. As a result, owners' equity A: decreases by $52,000 during the year. B: increases by $52,000 during the year. C: increases by $212,000 during the year. D: is $52,000 at the end of the year.