How can the retained earnings indicate the number of assets that the company has financed?

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: What is comprehensive income? How does comprehensive income differ from net income? Where do…

A: Comprehensive income:Comprehensive income represents the amount of net income plus other…

Q: Which ratio indicates the proportion of assets financed out of shareholders’ funds? (A) Debt equity…

A: Introduction: Any person, organization, or institution that owns stock in a company is a…

Q: Is it true that the book value of a company equals the value or it's assets according to their…

A: Book value of the firm is the value of its liquidating i.e the total amount when its assets are sold…

Q: measuring the performance and financial status of an enterprise are provided below. Assets…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: A company's additions to retained earnings is determined by which  two items?

A: Retained earnings refer to the surplus amount that is left over after making payments of dividends…

Q: The cumulative effect of the declaration and payment of a cash dividend on a company’s financial…

A: The cumulative effect of the declaration and payment of a cash dividend on a company’s financial…

Q: The flow of money or its equivalent produced by an asset dividends and interest a. investment b.…

A: An investment is defined as an asset or invested, which used in building the wealth as well as…

Q: Which of the following is an External sources of finance? a. Depreciation funds b. Retained…

A: Two sources of finance Internal and external

Q: What do the return on assets measure? The liquidity of a firm's current assets Management's…

A: >Ratio analysis is the study of financial statement data based on certain ratios. >ratio…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

Q: The account Retained Earnings is: the amount paid as dividend. a subdivision of paid-in capital. net…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: The comparison of a company's financial condition and performance to a base amount is known as

A: The financial performance identifies how successfully a firm makes revenues and manages its assets,…

Q: Information about the financial performance of an entity is primarily provided in the: A. Statement…

A: Income statement is prepared to show the financial Performance of the organisation after analysing…

Q: What amount of total assets have been financed by the creditors and by the stockholders?

A: Total Liabilities= Current Liabilities + Non current liabilities Stockholders equity= Common stock+…

Q: Are retained earnings apart of the companys net assets

A: Net assets of the company= Total Assets of the company minus its liabilities. Retained earnings is…

Q: What is the firm's net income in the current year? What is the firm's dividend payment in the…

A: Net income earned during the year is added to the beginning retained earnings and dividends paid…

Q: If a company capitalizes costs that should be expensed, how is its income statement for the current…

A: Any capitalization cost increases the assets and there will be no impact on the income statement.…

Q: what is the difference between paid in capital and retained earnings

A: The paid in capital and retained earnings are the part of statement of shareholders equity.

Q: What questions do investors and creditors ask about the company's future cash flow based on the…

A: Towards the conclusion of an accounting year, a company's income statement is produced to display…

Q: Networking capital refers to the    A) firms investment in total assets B) firms' investment in…

A: There are various heads of balance sheet including current assets, total assets etc

Q: Define the terms paid-in capital and retained earnings.

A: Paid in capital: Paid in capital represents the total amount invested by the shareholders of the…

Q: What are the cash flow effects when a company uses the equity method to record its proportionate…

A: The equity method of financing is the method through which a corporation records and reports its…

Q: The following information can be obtained by examining a company's balance sheet and income…

A: Cash flow statement is a statement which shows the the inflows and outflows of cash and cash…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: Why is it important for financial analyst to delve into current assets management cash flow and…

A: Proper current assets management, cash flow and profits are important for companies to operate…

Q: What are the total assets ? what is the net worth? how much does the company owe? whag is the…

A: The balance sheet shows the Assets and liability position at the end of year. The assets create…

Q: Define the following. a. Retained earnings? b. Goodwill? c. Investing activities?

A: a. Retained earnings: The amount of earnings undistributed as dividends to the stockholders is…

Q: The monetary value of the net assets is reported at its historical cost on the balance sheet? a.…

A: Physical capital is represented by the capital utilized for acquiring tangible fixed assets or…

Q: What is the significance of a pro forma income statement in the context of a company?

A: Define the term: The phrase "for the sake of form" refers to the pursuit of formality. It is used to…

Q: How is the cash purchase of capital assets reflected in a company's cash flow statement? As an…

A: Purchase of Capital Assets is a cash Outflow because cash is going out of the business while…

Q: The account that represents the increase in a firms net assets since its incorporation is

A: A. Non- Current Liability

Q: Why would a company’s return on total assets be different from its return on common stockholders’…

A: Equity: Each company needs finance to run the business. Equity is one of the method through which…

Q: Why does an increase in the ratio of current assets to total assets decrease both profits and risk…

A: Current assets and current liabilities are utilized to decide the liquidity of an organization. At…

Q: Describe the process of calculating the Company Cost of Capital?

A: Firms often operate their company using the capital generated from different sources. That involves…

Q: Is accrual accounting more closely related to a company’s goal of profitability or liquidity?

A: ACCRUAL CONCEPT - generally, the accrual concept recognizes revenue as and when it is accrued or…

Q: Investors and creditors use the income statement to answer what types of inquiries regarding the…

A: 1. Income Statement - Income Statement shows the income earned and loss incurred by the organization…

Q: 4. Assume that a manufacturing company’s annual income statement included a large gain from the sale…

A:

Q: Describe the process of determining the Company Cost of Capital?

A: Cost of capital : It is that rate of return company has to pay to raise the capital to start a…

Q: How does comprehensive income differ from net income? Where do companiesreport it in a balance…

A: Definition: Comprehensive income: Comprehensive income represents the amount of net income plus…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: Compute for the current ratio and describe the enterprise's capability to pay with current assets.…

A: Current ratio is the indicator of short term liquidity of the company and debt ratio indicate how…

Q: A firm's capital structure can be determined by examining which parts of the firm's balance sheet?…

A: A firm capital structure is generally consist of long term debt ,preferred stock and equity . A firm…

Q: What effect does the recognition of depreciation expense have on total assets?  On total equity

A: Depreciation expense is recorded by debiting the depreciaton expense account and crediting…