Question
I need some help with accounting. a) Can you clearly explain why a company might prefer to pay an employee/stockholder (they are both) a one-time
I need some help with accounting.
a) Can you clearly explain why a company might prefer to pay an employee/stockholder (they are both) a one-time higher salary/ bonus rather than a dividend. Would paying a dividend instead be more advantageous to the company?
b) Can you clearly explain what it means to write-off a cost and indicate where a write-off appears in the accounting financial statements. Is there any advantage to writing off a cost for accounting purposes? Do NOT consider any tax arguments in your response.
c) Can you clearly explain how the Income Statement and Balance Sheet would be affected if a company incorrectly recorded, what should have been PREPAID INSURANCE, as INSURANCE EXPENSE this period. Use terms like overstated, understated or no effect and support your answer clearly. Will the Balance Sheet still balance? Why or why not? ASSUME CASH WAS PAID.
d) Explain clearly why a debit card is called a debit card.
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